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      Binance Smart Chain Under Fire For Centralization - Stocks Telegraph

      By Muskan

      Published on

      April 12, 2021

      9:11 AM UTC

      Binance Smart Chain Under Fire For Centralization - Stocks Telegraph

      Binance Smart Chain (BSC)  utilizes a Proof of Staked Authority consensus mechanism. Per the mechanism, the network has 21 active validators which are hand-picked daily by the 11 validators of Binance Chain.

      A researcher from the crypto research firm Messari has pointed out towards the lack of decentralization in the staking mechanism of BNB. The researcher, Ryan Watkins, vocalized his disdain for the Binance community for leading inexperience investors awry with narratives of decentralization. Watkins further bashed the network, stating the speed of BSC is not because of any technological innovation but rather due to its centralization. Watkins further called BSC a centralized Ethereum fork.

      Binance Chain was launched by Binance to ensure speed to trading but smart contracts on the network ended up slowing it down drastically. As a result, Binance Smart Chain was launched to facilitate the use of smart contracts and Ethereum Virtual Machine (EVM). BSC runs parallel to Binance Chain and is an independent block chain. It is also the staking mechanism for Binance Coin (BNB).

      The Binance Community was quick to rush to the rescue of BSC. Some stating the phenomenal performance of BNB in the first quarter of 2021 to be enough reason for the validity of the technology. While other users regarded copying as inherent to technological innovation.

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