, 2 years ago
Decentralized finance is the most important application on the Ethereum blockchain. Ranging from decentralized exchanges up to lending or generating passive income there are literally thousands of different businesses that could possibly build on this technology. But there is a huge downside to it. Ethereum is not scaling well and is overrun by users trying to benefit from different DeFi products.
Many challengers tried to beat Ethereum in the past and it seems that only recently a mayor competitor rose up and is attempting to overthrow Ethereum for good. In this article we are taking a closer look at the Binance Smart Chain and the possibilities in the market for Binance Coin (BNB).
The Binance Smart Chain (BSC) is not as decentralized as Ethereum. This one of the biggest criticisms around BSC. On the other hand, BSC is scaling very well. The fees are low and transaction times are way better than on Ethereum. This is not only important to the average person using DeFi products. Developers also have to pay large fees in order to make their dApps happen. In this sense the Binance Smart Chain is also the more viable opportunity for smaller projects.
While true believers of decentralized blockchain technology doubt that a more centralized blockchain could be of any use, BSC is proving its worth by being faster and more affordable to the masses.
BNB has established its position as the third biggest cryptocurrency according to its market capitalization. Given the fact that its smart chain ecosystem has only started most recently there is still growth potential.
While it has been largely criticized that BSC is just copying successful platforms that are already available on Ethereum, it is this fact that shows how much of an opportunity BSC is. Its not only cheaper and faster, but it is also delivering those platforms that are requested the most by the global DeFi community.
What needs to be delivered are own products that empower the technology to change its image and show its real value. Yes, it is more centralized and copies successful concepts. But the smart chain is still very young and it simply needs more time to develop and grow itself. The biggest risk is not within the BSC, but in the fact that Ethereum could finally deliver what Binance Smart Chain already has to offer. Speed and affordable fees.
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After the successful Ethereum Merge, a potential censorship issue has crept up on Ethereum. In the new block production architecture, an increasing number of transaction blocks is being built by an organization called Flashbots. This organization has chosen to be compliant with the sanctions list of the American OFAC. This poses a risk of censorship on the protocol level of Ethereum. Flashbots is aware of this and has proposed a solution.
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Synthetix is a DeFi application that could possibly contribute to a lot of use-cases that are not typical for this sector and in this article, we are going to explore its features.
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