Can Binance Usurp Ethereum?
Ethereum has been here from the beginning – It may well be the one of the forebearer’s in the smart contracting arena, but is it slowly becoming a victim of its own early success? The space is clearly becoming more competitive in the race to sign up new clients. The launch of Binance Chain and its attractive proposition to new projects is arguably the biggest challenge for Ethereum as a platform, impacting the ETH valuation and possibly even usurping its position. One of the most pertinent questions in the crypto space right now is…Can BNB even ‘flip’ ETH?
In an industry which has been beset with problems, with general hypocrisy and a fleet of projects claiming to be the next big thing (but invariably ending in disaster), Binance has appeared as a much needed success story, which has restored quite a bit of faith back into the battered crypto sector. Binance is currently hitting its stride, offering a range of new, innovative (and useful) products which are moving the industry forward at just the right time.
While Ethereum has been making progress, it is extremely slow in comparison to Binance. Binance CEO, Changpeng Zhao insists that Binance DEX doesn’t challenge Ethereum since it doesn’t have smart contracts and its a trading platform
Instead, DEX seeks to counter all the ‘problems’ present in centralized exchanges such as security and control. However, there are talks that developers could ask for smart contract deployment on Binance DEX.
Binance Early Days
At the time, Binance Coin (BNB) seemed like ‘an excuse for an ICO’, but it has since been revealed to be a fantastic way to encourage repeat business.
By offering traders a way to speculate on a token which floated on a public market… and by enabling the exchange’s fees to be paid in that coin, Binance has created a cycle by which its users are incentivized to stay within its platform. Genius!
Although ETH continues to maintain its position as the second largest cryptocurrency in terms of market cap, BNB has been steadily rising and currently occupies the seventh place on the liquidity list with a market cap of $4,775 million. This is a huge achievement for an exchange-based coin, making it even more attractive for investors and exchange fans. Binance DEX could also help boost the BNB price higher.
Its abundantly clear that intense competition from Binance Chain and their ‘side-chain’ ambitions (and irresistible offers) – could have an eroding effect on price should Vitalik choose not to evolve and fast-track development.
Despite Slow Development, Ethereum Is Decentralized
The Ethereum network did implement the Constantinople upgrade earlier this year. However, progress on the blockchain continues to be slow. The big argument by some crypto enthusiasts is that Binance DEX is not a decentralized entity and it is merely using the IEO hype to repackage failed ICOs in the form of IEOs.
Several cryptocurrency enthusiasts maintain that the Binance DEX is centralized to a certain extent since it is in the control of Binance, despite claims that it will be a decentralized exchange.
This feature is a huge turnoff for some people as the primary objective behind cryptocurrencies is decentralization.
In conclusion, there is confidence amongst Ethereum supporters that Binance will not pose much of challenge. They might well be wrong unless they hasten their plans.
At the current time of writing, BNB is vastly outperforming the ETH price (recent price rise) – it will be interesting to see what the future holds.
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