Binance smart chain is centralized ?

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

Quote from: criket on March 19, 2021, 10:34:34 AM

I think some of the tokens that are released with the BSC also have the possibility to be listed on the Binance Exchange. I actually see that the BSC could be better in the future. just look at the current momentum when ethereum becomes a conversation about its obstacles. BSC is a solution and gets positive enthusiasm from the market. really extraordinary, I am sure the adoption will continue to increase.

But if we look at this situation from the other side, we will see that despite the fact that Binance smart chain has lower fees, most projects are now still built on the ethereum blockchain. Thus, developers choose decentralization, just like large investors, preferring it to a centralized BSC.

SquallLeonhart

legendary

Activity: 2464

Merit: 1102

As long as validators are limited it will always be a centralized project. However this allows them to be a lot faster and a lot cheaper, when ethereum peaked at 100+ gwei, BSC allowed people to move money around for just 60 cents, that is not something you could find in ethereum, not anymore at least. Plus binance spends over hundred million dollars to help projects to be built on BSC, and that is why I think they are not bad at all even while being centralized.

So long story short, it is centralized and that is a bad thing, but it is centralized for a great company and that is a good thing, those two things feel like it is canceling each other out and making it just decent. I think defi projects on BSC could be huge in the future, by the looks of it ETH will stay like this for some more time and because of that BSC and obviously because of that BNB will be bigger and bigger.

ingiltere

legendary

Activity: 2982

Merit: 1485

Quote from: udayantha11 on March 19, 2021, 06:35:45 AM

I love bsc and its totally backed by binance. Recently heard that this is centralized and nods with binance

What is nods and how become centralized ?

It's as centralized as other chains. The market is open to join for everyone, if you get high amount of BNB and start staking you can be a validator and have big power too. It's not much different than other staking coins, whether it's Ethereum or Tron Chain or whatever else.
If you want decentralization you should stick to Bitcoin, none of other coins are decentralized as much as Bitcoin.

Golftech

hero member

Activity: 2128

Merit: 520

Quote from: Yogee on March 21, 2021, 12:14:16 PM

Quote from: ?? on ??

It cannot be mined and the developer holds a lot of supply. I think that's the reason it's called centralized.

The BSC referred to in this case is the blockchain and not any token. It is considered by many people as centralized since there are only 21 validators compared to the thousands of nodes on the Ethereum chain. Less nodes means more control. More control means more centralized.

Giving that fact, those nodes holders can control most of the movements of this chain, I follow you with your statement. It's assumed

centralized as control are being dictated by few.

Quote from: Japinat on March 22, 2021, 04:42:23 PM

It is centralized, that's why I don't really see it could compete against ETH although ETH platforms now charge a huge transaction fee. People transfer to BSC due to its lower fee but when ETH could sort and run the ETH 2.0 successfully, people will start coming back.

For now, Yes it's been use as alternative since ETH gas fee really taking small investor's down. Traders who can't afford to

pay the transaction fees will find and willing to use alternative to continue doing business.

Japinat

hero member

Activity: 3052

Merit: 685

It is centralized, that's why I don't really see it could compete against ETH although ETH platforms now charge a huge transaction fee. People transfer to BSC due to its lower fee but when ETH could sort and run the ETH 2.0 successfully, people will start coming back.

bitcon

legendary

Activity: 2212

Merit: 1008

Of course, it cannot be denied that despite its rapid development and popularity, BSC has a number of disadvantages. However, Binance Smart Chain is really centralized as it was developed by a centralized exchange. Binance has tremendous control over the network.

BSC has a temporary benefit due to the difficulties Ethereum faces - very high gas fees. Once Ethereum finds a way to solve the problem, the progress made by BSC will be nullified.

eaLiTy

hero member

Activity: 2814

Merit: 911

Have Fun )@@( Stay Safe

Quote from: udayantha11 on March 19, 2021, 06:35:45 AM

I love bsc and its totally backed by binance. Recently heard that this is centralized and nods with binance

What is nods and how become centralized ?

BSC is supported by a single entity and any changes they make will be under their discretion, in ETH there are multiple developers and thousands of nodes while BSC works with PoSA consensus and they have basically 21 validators and you can become their chain validator but if you are planning to spend money on that there are much better coins with much lower requirements.

You can read further about validators here

Yogee

sr. member

Activity: 1554

Merit: 413

Quote from: ?? on ??

It cannot be mined and the developer holds a lot of supply. I think that's the reason it's called centralized.

The BSC referred to in this case is the blockchain and not any token. It is considered by many people as centralized since there are only 21 validators compared to the thousands of nodes on the Ethereum chain. Less nodes means more control. More control means more centralized.

X-ray

hero member

Activity: 3038

Merit: 526

Leading Crypto Sports Betting & Casino Platform

Quote from: ?? on ??

It cannot be mined and the developer holds a lot of supply. I think that's the reason it's called centralized.

It should not become the reason why BSC was centralized but the correct reason should be the BSC network is undercontrol by some nodes and that means these nodes that's different with ethereum that controlled by a lot of nodes around the world. This should be the main reason why BSC is centralized

hd49728

legendary

Activity: 2044

Merit: 1018

Not your keys, not your coins!

Quote from: sheenshane on March 21, 2021, 11:08:39 AM

Isn't convincing that Binance chain is decentralized, it's likely centralized because I saw before that they owned 50% of staking nodes.

For now, BSC is a primary tool that traders used to save the fee but not storing the value, unlike Ethereum. So, investing in their stock market in a long term is very risky, we are here for Decentralized Finance for a decentralized nature.

Use BSC and invest in BNB means you take risk and if you accept risks by putting all your capital into BNB, afford any drama to come with Binance, BNB and BSC. You can win or lose, just afford any result from your decisions.

I don't consider what people are doing: use BSC to transfer their money or invest in BNB with hope that the success and growth of BSC will help the coin has better value on the market. Crypto is crazy and you can double your capital after one night sleep or see your balance halves too.

Losers don't take profit at peaks but they cut loss at bottoms. Grin

sheenshane

legendary

Activity: 2492

Merit: 1232

Isn't convincing that Binance chain is decentralized, it's likely centralized because I saw before that they owned 50% of staking nodes. If we compare this BNB to Ethereum when it comes to staking node is far different. AFAIK, with more than 10k nodes on PoW and moreover 100k validators on PoS this Ethereum can completely be called decentralized than the BSC.

For now, BSC is a primary tool that traders used to save the fee but not storing the value, unlike Ethereum. So, investing in their stock market in a long term is very risky, we are here for Decentralized Finance for a decentralized nature.

hd49728

legendary

Activity: 2044

Merit: 1018

Not your keys, not your coins!

From the tweet of CZ, you can see how he is actively shilling BSC.
From total validators, less than 30, it is truly centralized chain.

You can use it like Tron if you want to save transaction fee but don't think it can beat Ethereum or will be a decentralized chain. If you only consider it as a tool to move your crypto, it is good.

I agree with above posts that store money on centralized chain is risky. See what drama was with Ripple months ago. Don't forget Binance is from China and the government there have power to do anything they want. Alibaba is another example of their regulation.

WalkerIVIV

hero member

Activity: 2436

Merit: 503

Cryptocasino.com

Quote from: Kitaiev on March 19, 2021, 09:45:31 AM

If bsc is compared to Ethereum, then bsc is more centralized. This is not bad but we need to keep in mind that it is better not to store a lot of money in bsc.
Cryptocurrencies are prized for decentralization.

Both centralized and decentralized have their own pros and cons. BSC may centralized but it can be improved easily compared with ethereum that needs a very long process to did 1 EIP on the platform.
Binance chain is totally centralized since it was being created. I remember the old model of BNB chain has become a centralized as well but it's more complicated compared with the current platform what we called that as BSC. Your money will be safe if you can secure your privkey.

el kaka22

legendary

Activity: 3654

Merit: 1165

www.Crypto.Games: Multiple coins, multiple games

Even though I love BSC and I have invested heavily into many defi projects based on BSC as well, I have to agree that BSC itself is centralized. I do not care that the blockchain I am using is centralized because I care about the project I am investing into is decentralized and all of them are properly decentralized, as in even if the project owner came up and said something people have a right to vote it out and not have it, so that's great.

BNB is centralized currency and BSC is a centralized chain, that was always like that and will always stay like that, this is why we can't really have any trust into the system for good but you can trust it as much as you trust Binance and CZ, they are entities in the end and anything could happen but it is not some small 4 person job from a third world nation neither it is actually a huge company with billions of dollars.

criket

full member

Activity: 896

Merit: 100

Quote from: Kitaiev on March 19, 2021, 09:45:31 AM

If bsc is compared to Ethereum, then bsc is more centralized. This is not bad but we need to keep in mind that it is better not to store a lot of money in bsc.
Cryptocurrencies are prized for decentralization.

I think some of the tokens that are released with the BSC also have the possibility to be listed on the Binance Exchange. I actually see that the BSC could be better in the future. just look at the current momentum when ethereum becomes a conversation about its obstacles. BSC is a solution and gets positive enthusiasm from the market. really extraordinary, I am sure the adoption will continue to increase.

Yurkov

sr. member

Activity: 1463

Merit: 265

Pepemo.vip

In my opinion its centralized and primary reason is that its backed by a company. Anything that is controlled by single entity is centralized. Bitcoin is example is decentralized blockchain since its code can't be altered by anyone.

Ucy

sr. member

Activity: 2674

Merit: 403

Compare rates on different exchanges & swap.

Quote from: zasad@ on March 19, 2021, 07:10:01 AM

For me, the criterion for decentralization is the ability to become a validator.
https://bscscan.com/validators#
How many of us can become validators?
Therefore, I am afraid of storing large amounts on this blockchain.
If the bridge stops working, then the withdrawal of funds will be available through the binance exchange.
I do not want to show my savings to the exchange

Ofcourse! The ability to run a full node,become a validator or take part in full networks consensus is very important for a truly decentralized network/system. A well decentralized network/system can achieve all these without compromising on speed, efficiency, cheap fees etc

Kitaiev

sr. member

Activity: 1064

Merit: 300

If bsc is compared to Ethereum, then bsc is more centralized. This is not bad but we need to keep in mind that it is better not to store a lot of money in bsc.
Cryptocurrencies are prized for decentralization.

Jawhead999

legendary

Activity: 1820

Merit: 1207

Quote from: danherbias07 on March 19, 2021, 08:42:05 AM

Oh that's a good point into why Ethereum won't still back down just like that.
Someone in control is really scary. There is always the doubt to what ifs.
If suddenly he got bored with it he could just all shut it down without reason. "Talk to my lawyer."
He could easily get away from it with all the money he is storing wherever it is. Maybe it's with Bitcoin. Grin

But it not that easy to do that.

Of course Binance and CZ reputation will destroyed since many people are losing their trust on Binance, obviously all hard work from CZ and his team be gone instantly. Became a top 1 centralized exchanges with $123.4 million/year profit [1] isn't easy and I think it would be bad idea because popularity of cryptocurrencies day by day are increased due to Bitcoin keep breaking new ATHs.

[1] https://growjo.com/company/Binance

danherbias07

legendary

Activity: 3318

Merit: 1133

Leading Crypto Sports Betting & Casino Platform

Quote from: Jackl87 on March 19, 2021, 07:52:13 AM

The name binance smart chain already indicates that it is tightly connected to binance and therefore also part of CZ's crypto imperium.
In Telegram i read from a lot of people that they refuse to switch from ETH to BSC even though fees are that much lower there, but those people just dislike how CZ is slowly becoming more and more powerful in the cryptosphere.
Binance also owns coinmarketcap.com now for a few months, with that they have another tool to regulate information.

Oh that's a good point into why Ethereum won't still back down just like that.
Someone in control is really scary. There is always the doubt to what ifs.
If suddenly he got bored with it he could just all shut it down without reason. "Talk to my lawyer."
He could easily get away from it with all the money he is storing wherever it is. Maybe it's with Bitcoin. Grin

passwordnow

hero member

Activity: 3108

Merit: 577

Leading Crypto Sports Betting & Casino Platform

The only advantage of it today is that many are considering it to save the fees. But without further research, they won't conclude and consider it whether it's centralized or decentralized. As the other says for its classification as a centralized chain, there will be more of the cons as many of us don't want a centralized it. But I guess for many projects and investors that don't worry about it, that's not of a much case for them but we have our own preference and thoughts regarding centralization.

Jackl87

sr. member

Activity: 1722

Merit: 269

The name binance smart chain already indicates that it is tightly connected to binance and therefore also part of CZ's crypto imperium.
In Telegram i read from a lot of people that they refuse to switch from ETH to BSC even though fees are that much lower there, but those people just dislike how CZ is slowly becoming more and more powerful in the cryptosphere.
Binance also owns coinmarketcap.com now for a few months, with that they have another tool to regulate information.

Myleschetty

member

Activity: 1165

Merit: 78

Yes, Binance smart chain is a centralized project but if you read through their main site they will claim it a decentralized project because it operates using Ethereum Virtual Machine (EVM) but it nothing like Ethereum. However, Binance we're more after TPS and cross chains transfer.
Most crypto investors are after the BSC because of that and the profit of earn free coin.
Note : every project created by Binance are centralized

zasad@

legendary

Activity: 1932

Merit: 4602

Buy on Amazon with Crypto

For me, the criterion for decentralization is the ability to become a validator.
https://bscscan.com/validators#
How many of us can become validators?
Therefore, I am afraid of storing large amounts on this blockchain.
If the bridge stops working, then the withdrawal of funds will be available through the binance exchange.
I do not want to show my savings to the exchange

JeffBrad12

hero member

Activity: 2954

Merit: 533

Leading Crypto Sports Betting & Casino Platform

There are no more than 24 nodes and it can be easily controlled by any entities include binance itself and i suggest you to read more about that here

https://www.coindesk.com/controversial-dapps-test-binance-smart-chains-decentralization

That gives a very well explained reason why BSC is totally centralized compared with ethereum. I think such an article already answered all of your questions.

mersal

member

Activity: 1204

Merit: 38

Quote from: udayantha11 on March 19, 2021, 06:35:45 AM

I love bsc and its totally backed by binance. Recently heard that this is centralized and nods with binance

What is nods and how become centralized ?

AFAIK, yes. It is centralized and the reason why they use the centralized blockchain is to proceed more transactions in less time which means cheaper transaction price and more projects can be utilize the chain. But the projects running on the chain are mostly decentralized because now Defi projects are using BSC due to insane fees on the ethereum network.

udayantha11

member

Activity: 798

Merit: 17

2023 would most likely be as bearish as 2022

I love bsc and its totally backed by binance. Recently heard that this is centralized and nods with binance

What is nods and how become centralized ?

Topic: Binance smart chain is centralized ? (Read 248 times)