Binance. This is one of the most ambitious crypto projects on the planet. After its very successful Initial Coin Offering (ICO) in 2017, Binance quickly rose to the top of crypto exchanges. With its wide selection of altcoins and its very competitive offerings and trading fee discounts through BNB, Binance managed to steal a huge amount of crypto traders from other established exchanges at the time such as Huobi, Bitfinex, and Coinbase.
But Binance didn’t stop there. They wanted to expand their project to include an even more ambitious plan – such as creating their own blockchain. They started with Binance Chain, which was forked from Cosmos SDK and Tendermint. Binance Chain is the technology behind Binance DEX. But, as usual, most people were not convinced with “new Ethereum” projects and Binance Chain was not an exception either. For that reason, Binance DEX wasn’t able to get the mass adoption that it craved so much.
Binance CEO, CZ, however, is a very creative individual. He knows how to play things to his hand. He saw how many DeFi projects decided to build on top of Ethereum blockchain. He thought that by creating a new smart contract ecosystem that copied the fundamental features of Ethereum might help Binance DEX to eventually achieve success. And now Binance Smart Chain (BSC) has finally come alive, it looks pretty similar to Ethereum, indeed!
But can Binance Smart Chain overtake Ethereum’s success? Well, let’s try to find out.
The Similarities Between BSC And Ethereum
Unlike Binance DEX that was forked from Cosmos SDK, Binance Smart Chain actually looks like an Ethereum clone. Just take a look at its blockchain explorer, bscscan.com, which looks extremely similar to etherscan.io (the most popular Ethereum blockchain explorer). You can also use Metamask, use custom settings to connect to BSC servers, and you will be able to use the exact same wallet address as if you are using Metamask to Ethereum mainnet.
The fact that Binance does this (and even encourage BSC users to use Metamask) shows that CZ is willing to go that far just to attract crypto traders to his ecosystem. He understands that many traders are not willing to test other blockchain platforms if they look like a new learning curve. That’s why he makes BSC to be as Ethereum-friendly as possible so he can grab the DeFi traders and yield farmers’ attention, and lock them into his own DEX ecosystem.
Many of the newer DeFi protocols are also buying this idea. Look at Dego, the rising DeFi-NFT protocol, where it also started on Ethereum. Nowadays Dego has its own BSC mining mechanism where people can buy its NFTs with BNB. Of course, many of the newer projects might try to attract CZ’s attention to get listed on Binance.com by promoting BSC.
It’s pretty smart if you ask me. Many people refuse to keep learning a new user interface and new blockchain explorer. CZ tries to circumvent these challenges by just introducing a carbon copy of Ethereum but faster and without expensive gas fee problems.
So, what are the challenges for BSC to overtake Ethereum? There are plenty of them, actually. First of all, BSC is still maintained mostly by Binance itself. The majority of the servers are owned or closely tied to Binance. It’s very different from Ethereum where different nodes and miners don’t know each other. When it comes to the basic fundamentals of blockchain technology (which is decentralization), it is still very far for Binance to be able to come close to Ethereum. And yes, this fact matters a lot because Binance CZ has too much power to govern Binance Chain and BSC.
Another challenge for BSC to overtake Ethereum as the go-to smart contract platform is the fact that BSC adopts the “carbon copy” approach instead of trying to have its own identity. As we know, in any kind of industry, a carbon copy rarely surpasses the original, especially in the tech industry, where everybody is already exposed to the original protocol. In this case, everybody who uses BSC already has experience with Ethereum. For this reason, it will be hard for BSC to overtake Ethereum, just like the fact it will be almost impossible for BCH or BSV to overtake the original Bitcoin.