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Binance Smart Chain (BSC) gaining popularity: How do Ethereum developers, KOLs, and Zhao Changpeng view it? Should we be worried about hackers?

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Binance Smart Chain (BSC) gaining popularity: How do Ethereum developers, KOLs, and Zhao Changpeng view it? Should we be worried about hackers?

Ethereum has become slow and expensive, turning into an "elitist activity" despite the continued vibrant activity on the chain. The popularity of Binance Smart Chain (BSC) created by the exchange Binance is mainly due to its speed and cost-effectiveness, but it is criticized for being more centralized. How do Ethereum developers and key opinion leaders (KOLs) view the emergence of BSC? What are the thoughts of Zhao Changpeng, the founder of Binance, on this matter?

Ethereum Developers and KOLs' Perspectives on BSC

1 Ethereum Devotee, Developer Anthony Sassano

Reported Sassano made a declaration that he wouldn't post until Ethereum hit a new high and had been absent from his beloved Twitter for nearly two weeks. How does he view the BSC craze?

"I feel like today is the end of the DeFi craze."

What I want to say is that it seems like the end of the DeFi frenzy. It's a lot of noise, pump, and then we go into a bear market.

"I don't know if it will really turn out that way, but my head is spinning, maybe I shouldn't use Twitter anymore, and start watching anime."

Someone comforted him, saying that it's okay, it's just like the hype around EOS and TRON, and Ethereum will rebound next week. Sassano responded, "I'm not worried about BSC at all."

2 Ethereum Core Developer Afri Schoedon

Schoedon stated, "The difference between Ethereum and BSC is that Ethereum cannot be shut down. Please understand this first before using trading volume to rank decentralized exchanges or boast about gas fees there."

One thing is important, that we must remind ourselves that we are not just building open-source software but an uncensorable, unstoppable decentralized system.

https://twitter.com/q9fmz/status/1362760409862844420

3 DeFi Investor Arthur_0x

Arthur stated, "BSC is like a barbarian invading Ethereum's territory, and it has the right to do so. Because even millionaires cannot keep paying $20 fees for a simple ERC-20 transfer."

4 Former Messari Product Lead/DeFi KOL Qiao Wang

Qiao Wang said, "The Ethereum community doesn't need to be ashamed of BSC."

The teams I know have all moved from Ethereum to BSC. Most of them see BSC as an emergency solution. They cannot ignore Ethereum's network effect, and they will return to Ethereum when second-layer solutions succeed.

https://twitter.com/QwQiao/status/1362618798210248711

5 Three Arrows Capital Su Zhu

Su Zhu said, "I will actively participate in BSC."

It will demonstrate the network effect of being compatible with Ethereum Virtual Machine (EVM) and MetaMask, along with the strength and flexibility of the Binance brand.

"In the long run, I am very bullish on Ethereum, Binance, DeFi, and cryptocurrencies."

6 The Block Research Director Larry Cermak

He remarked:

We all know that in the long run, BSC will not threaten Ethereum. But it's entertaining to see Ethereum advocates starting to criticize BSC like Bitcoin advocates criticize Ethereum.

"Just relax and let market demand evolve naturally."

Binance Founder Changpeng Zhao CZ's Tweet

CZ stated:

"Interestingly, many exchanges do not list the fourth largest cryptocurrency." At the time of writing, BNB had become the third-largest cryptocurrency.

This shows their limited vision. And they do not realize that this is hindering their own growth. As BSC and BNB grow bigger, this effect will become more evident. It already has the largest daily trading volume for smart contracts. Let's see how they will miss out on the real big DeFi moves.

"It's crazy that many exchanges don't list BSC tokens like CAKE and XVS. It's their loss. I really don't want to tell them. But we really want the industry to grow."

"BSC and the projects on top of it will continue to grow even without other exchanges. They already have Binance. It's really for the benefit of other exchanges that I suggest they list some strong BSC tokens."

Negative Criticism: BSC Washes Trading Volume

Well-known Twitter KOL @ChainLinkGod said:

"I want to tell everyone who thinks BSC on-chain activities are real to look at this. Just this contract has had 680,000 failed transactions abandoned in the past 17 hours: https://bscscan.com/txs?a=0x21fa8ca35441e70ad1137fa3c1365c994f2b7c23&p=8"

Please guide me, CZ, and explain this obvious manipulation activity.

"We all know that Binance has been helping these CeDeFi applications, centralized in decentralized applications on BSC, but starting to play such scams is another level. If your funds are on BSC, please pay attention to whether you have given money to some malicious custodians."

Viewpoint: BSC Has an Artificial Moat

We believe that while BSC's weak decentralized blockchain goes against the ideal decentralized state of the crypto community, in the current state where Ethereum's fees and speed are subpar, it is normal for the market to make practical choices in the short term.

Even if BSC has manipulated trading volume, it does not conflict with users' goal of profit but is merely a marketing tactic. Moreover, the most crucial point, and the most advantageous point for BSC to do CeDeFi is: the wrongdoers are trapped in a pseudo-decentralized environment.

Assets within BSC are all BEP-20 standard tokens. These assets can only escape the BSC network through two paths: transfer to Binance exchange or transfer from Binance Bridge to wallets on other networks.

Consider this: if a malfeasant gains improper funds within the BSC network, they can only withdraw 58.12 ETH from a single address in a day, equivalent to $114,148 at the time of writing. Stablecoin DAI can only withdraw $115,141.04 in a day. Although wrongdoers can use multiple addresses to solve the issue of withdrawing funds, Binance has too many means to prevent the situation from worsening. This may seem like an annoying centralized mechanism, but for average users who prioritize fund security over decentralization, it may be more appealing.

We look forward to the improvement of Ethereum's usability, whether in fees and efficiency. Perhaps for the Ethereum community, this competition and impact are also a good thing.