- Messari researcher drags Binance Smart Chain for centralizing its validators.
- BSC uses Proof-of-Staked Authority consensus.
- BNB price reached a new ATH today.
Messari researcher Ryan Watkins calls out Binance Smart Chain (BSC) for centralizing its validators. However, despite the Binance holders celebrating Binance Coin’s (BNB) price surge, there were growing concerns regarding this centralization of the Binance ecosystem.
The BSC blockchain network uses Proof-of-Staked Authority (PoSA) consensus. More so, it selects its 21 active validators on a daily basis. The Binance Chain, a network governed by 11 validators, makes this selection. Even more, validators of BSC stake BNB.
Some might overlook the influence Binance Chain has over Binance Smart Chain’s validator set.
BSC has 21 active validators, making it more centralized than most platforms.
This validator set is determined daily by Binance Chain, a network managed by just 11 validators. pic.twitter.com/UeWDj0o1DY
— Wilson Withiam (@WilsonWithiam) April 12, 2021
Messari’s Wilson Withiam speculates saying,
It’s hard not to presume that each Binance Chain validator is in some way connected or tied to Binance. They each take turns producing blocks in a seemingly predefined order. There doesn’t appear to be any stake-weighted mechanism to determine which one produces the next block.
BSC is an Ethereum Fork Hosting a Centralized Validator Set
Watkins explains that BSC is an Ethereum fork and hosts a centralized validator set. On considering invention or innovation, copying is normally a feature, not a bug. Moreover, ‘Mkt92z’ replied to Watkins’ tweet, describing that Ethereum’s high gas fees and the scaling issue have driven users to see other alternative protocols.
Etherium needs to hurry and solve their scaling probablem that’s causing ridiculously high fees. These fees are taking too much out of peoples pockets. At some point people care more about their money than Defi.
— maurice k taylor (@mkt92z) April 12, 2021
Furthermore, BNB was the best-performing cryptocurrency that ranked among the top ten by market cap. Even more, the BNB market cap is presently greater than that of UBS and Banco Santander.
According to CoinGecko, the BNB price is trading at $576.15, thus, reaching a new ATH, with a 24-hour trading volume of over $9.784 billion.