Can the recent big move of Binance Chain become its capital to compete with Ethereum?

This year is probably the most memorable one in the cryptocurrency circle. There is no trace of the Chinese New Year, and there is no sharp drop in previous years. Even various digital currencies are rising crazily. Analyze it.

The three major domestic exchanges: Binance, Huobi, and OKEx have all issued their own public chains. However, in terms of overall application quality and ecological scope, Binance Chain is particularly prominent.

In particular, its platform currency BNB has seen a huge increase since February, from $44.43 on February 1 to $291.26 on February 20, an increase of 655%, and its market value ranking directly rose to the third place. The swift and violent momentum that stands out from the encirclement.

The struggle between the ecological public chains instantly changed from a battle of heroes to a triangular battle: Ethereum-Binance Chain-Polkadot. And why can Binance Chain stand out among them?

The reason is that Binance Chain itself has strong financial strength, and some projects invested by Binance have developed very well, and have a certain strength to dare to face Ethereum.

I think that the gas fee of Ethereum is a very important fuse. Its continuous rise has made many ordinary people unable to use it. Therefore, Binance Chain has begun to attract attention, but it can really impact Ethereum. ?

Let’s take a look at its origin first. Binance Chain (BC for short) was launched in April 2019 and is the first public chain in Binance’s dual public chain plan. In addition to the basic functions of token issuance, use and exchange, BC also has the characteristics of high throughput and low latency comparable to the centralized system. It is the transaction speed and good performance of Binance Dex. Guaranteed experience. Binance Smart Chain (BSC for short) can be regarded as a blockchain parallel to Binance Chain. At present, it mainly serves the Binance DeFi ecosystem, and also makes Binance’s dual public chain model tend to whole.

After having a basic understanding, let's take a look at its ecology. At present, Binance Smart Chain has formed an ecosystem based on DeFi, NFT & games, and infrastructure, and more than 100 projects have been launched. And for the most popular DeFi last year, there are more than 80 DeFi ecological projects on the Binance Smart Chain and continue to increase, covering decentralized exchanges, on-chain lending, synthetic assets, derivatives, cross-chain, oracles, Insurance, payment and other fields.

These ecological landing applications are its foundation. With the help of various applications to expand its own strength, the same is true for Ethereum. Their continuous growth is a good thing for the current mixed market environment, allowing everyone to follow high-quality projects. Step on the pit.

But now many people compare it with Ethereum. I don’t think it is necessary. Ethereum is still the leader, and it is difficult to be overtaken by the latter. Now it is only because of the high gas fee that the threshold for retail investors is too high, making other The public chain has an opportunity. As one of the public chains that have accumulated for a long time, it is not a coincidence that Binance Chain has risen to the second place under this opportunity.

However, the centralization of Binance itself is also the main problem that has been criticized by people. Many applications are still invested by Binance, and the chain itself is carried by the centralization. This is still somewhat against the spirit of the blockchain.

Now Binance Chain has caught up, and Ethereum is also fighting back. This battle must last for a while, let us wait and see who will control the ups and downs!