In April 2018, Binance Crypto Bourse released its Binance Chain. Already the next day, the crypto-based native token based on it, the Binance Coin (BNB), reached an all-time high against the US dollar. At the same time, several projects announced a migration from Ethereum to the Binance Chain.
The question then is, is it just hype or is the Binance chain a real challenger to the other smart contract protocols?
Binance CEO Changpeng Zhao said some time ago that Binance Chain did not offer smart contracts. Thus, the closed chain is currently no threat to Ethereum. This does not mean that the Binance Chain could not provide Smart Contracts through other platforms. Just think of Cosmos, the blockchain that will enable Blockchain interoperability. In addition, it is possible that Binance will expand its chain with options for creating smart contracts. Smart contracts are just too important to ignore. The opinion of Changpeng Zhao should therefore have served mainly public relations purposes.
Thanks for the nice article! But almost too supportive. lol. @Binance_DEX does not challenge Ethereum, it does not even have smart contracts. It challenges us, exchanges. 🙂
The “Protocol Wars”
In general, protocols must attract developers and users. This also applies to the Binance Chain. The more developers develop on the platform, the better. More projects mean more customers and they strengthen the network. That's what the core of the “Smart Contract Protocol Wars” is all about.In love and war, all means are known to be allowed. It is therefore not surprising that rumors have surfaced that the crypto exchange Binance should have “forced” the change of projects to its chain. Ethereum, on the other hand, follows a different path. It is about realizing the ideal of decentralization. This is already shown in the whitepaper of the project.
Second-generation smart contract protocols, such as EOS, lie between the two positions of Binance and Ethereum. They are designed to circumvent Ethereum's design limitations. At the same time they sacrifice a piece of decentralization in favor of usability. So you want to offer about faster and cheaper transactions.
Better usability opens up more application possibilities. This is reflected, for example, in the surprising success of Tron. The Binance Chain has the clear and big goal to enable the trading of cryptocurrencies. Other projects, such as Ethereum and EOS, emphasize their blockchain focus and need to look for applications that are in demand on the market. The Binance Chain does not have to, thanks to its connection to the crypto exchange Binance. That means a clear advantage to the Binance Chain.
But what about Bitcoin? The king of the cryptocurrencies seems largely untouched. That may be because Bitcoin does not offer or offer smart contracts.
With Binance's huge market power behind it, it's unlikely that the success of Binance Chain is just hype. In addition, it is a smart approach to start with a specific application and then tailor the product to it. This is what Binance did. Thus, the project has a real benefit and real users. These strengths make the Binance Chain a serious challenger.
Only a few days ago, we reported on Binance's huge success with the IEOs, which are currently licensed to print money, as long as you can get a coveted allocation of tokens.
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/blockchain-der-kryptoboerse-Binance-bnb-is-the-the-important-developments-for-the-cryptowehren/
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