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OKEx CEO Accuses Binance Smart Chain of Centralization. What's Wrong With It?

Jay Hao identifies the possible disadvantages of EVM-compatible decentralized applications hosting platform released by leading cryptocurrencies exchange Binance

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Cover image via twitter.com

On Sept. 6, Binance top-notch crypto exchange ecosystem announced the mainnet launch of Binance Smart Chain with smart contracts and Binance Coin (BNB) staking. Mostly, this release was welcomed by the blockchain community, but some experts criticize Binance Smart Chain design.

What does it take to build a public chain?

Jay Hao, CEO of Malta-based OKEx cryptocurrencies exchange that delivers spot and futures trading services, claimed that Binance Smart Chain should not be treated by experts and users as a "public" or "decentralized" one.

He emphasizes that Binance (BNB) has developed a new "chain" acting as its one and only validator. The Binance team possesses exclusive on-chain governance rights. Despite this fact, the new product has been introduced as a "decentralized smart chain."

Also, Mr. Hao recalled a recent controversial decision by Binance CEO Changpeng Zhao. CZ assisted in recovering 800 BNB (about $20,000), sent by mistake to a contract address on Binance Smart Chain.

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Mr. Hao interprets this policy as "allowance to change the on-chain data" anytime without decentralized governance.

New race of "Ethereum killers"

Finally, Mr. Hao added that Binance's approach to its new product as a "public chain" not only damages the crypto community, but it may also cause a regression of the entire decentralized financial instruments (DeFi) segment.

Binance Smart Chain is very dangerous competitor of all existing dApp hosting platforms due to its full compatibility with Ethereum (ETH), the most recognized and well-documented smart contract platform.

As covered by CryptoComes previously, the former leader of Monero (XMR) protocol, Riccardo Spagni (@fluffypony), admitted that Binance Smart Chain will likely replace Ethereum (ETH) with Polkadot (DOT) as another potential target of dApps migration.

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Vladislav Sopov

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)