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Ethereum, Binance Smart Chain, and the waning belief in decentralization

Republished by Plato

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Binance Coin has risen exponentially this year, with BNB’s hike yet another feather in the cap of the world’s biggest crypto-exchange. Of late, however, it isn’t the exchange or the token that is grabbing the most eyeballs. Instead, it is Binance Smart Chain, a “high-performance blockchain with emphasis on smart contracts programmability.”

Consider this – For most of February, BSC’s daily transaction volume has been greater than the figures noted by Ethereum. In fact, with a host of projects now jumping ship to onboard Binance Smart Chain, BSC’s transaction volume has recorded YTD gains of over 300%.

What makes BSC so attractive? Well, there are a few reasons, but the gist of them can be summed up in one word – fees. Both the BSC’s and Ethereum’s.

Fee-ling the pressure

As was highlighted recently by Bankless’s David Hoffman, “Ethereum gas fees are restrictively high.” Fees associated with Ethereum are discouraging people, especially those new to crypto, from being onboarded onto Ethereum. Consequentially, one can argue that thanks to the same and high demand, retail investors in the DeFi market are often sidelined for whales.

What does this entail? Well, it means that the likes of Binance Smart Chain are well-equipped to swoop in and tailor to the growing demand that has contributed to the congestion on Ethereum’s network.

How is BSC able to do so? Well, among other reasons, it promises low transaction fees and transaction speeds, while also being 100% compatible with Ethereum.

Now, since it was launched in September 2020, many in the community have been obliquely referring to BSC as a competitor to Ethereum, a rival, maybe even an “ETH Killer.” Let’s examine that, shall we?

Fire and Ice

Competition or rivalry often comes down to differences. This is the case as far as BSC and Ethereum are concerned as well. However, one crucial feature can be highlighted to sum up what differentiates the two – Centralization.

Think about it – BSC is an L1 blockchain that is actually a fork of Geth, one that uses “21 trusted validating nodes instead of Ethereum 1.0’s proof-of-work.” In fact, as Hoffman pointed out, “these 21 entities are all extrapolations from Binance and its leadership,” entities that can even censor and reverse transactions.

Here, one can argue that as a centralized product, BSC captures value, but it does so solely for Binance and BNB’s shareholders.

On the contrary, Ethereum “captures value and returns it back into the ecosystem, either through ETH payments to Miners (or validators in the future), ETH holders under EIP1559, or smart contract deployers.” In fact, one of 2.0’s primary prerogatives is to ensure a sustainable, decentralized protocol.

Simply put, while Ethereum is a self-perpetuating protocol, Binance Smart Chain is heavily centralized.

To soul or not to soul

Curiously, BSC’s performance also questions the validity of Vitalik Buterin’s “Soul” thesis. When Buterin claimed that “even a billion dollars of capital cannot compete with a project having a soul,” some like Hoffman were quick to claim that projects like Bitcoin and Ethereum have souls, while the likes of BSC which run solely for profit do not.

And yet, BSC has outperformed by leaps and bounds. How so? Well, the aforementioned factors have surely contributed, but what must also be taken into account is the role of Binance itself. Binance, after all, is the world’s biggest crypto-exchange, and BSC can always tap into the liquidity and volume generated by the platform.

Now, we can all argue about souls and profits and decentralization and whatnot, but the real question is, does anyone even care anymore?

Decentralization – Do you still care?

Take the latter, for instance. For a community that was built on the ethos of decentralization, that doesn’t make sense, right? After all, that is one of the core tenets of blockchain and cryptocurrencies. And yet, BSC is doing well, doing exponentially well, against the tide of the principles that were once the bedrock of the community’s initial days. Why?

Well, many in the crypto-community don’t care about decentralization anymore. After all, should they? I mean, it’s a bull market right now. Cryptos are pumping left, right, and center. Most people have their minds set on making a profit, not on theoretical ideas that may or may not work out in the long-term.

In fact, the same was conceded by Hoffman in his latest newsletter. On the subject of Bitcoin and Ethereum being “multi-generational cathedrals,” he said,

“It’s hard to convince people on the value of decentralization and the importance behind such efforts. These lessons can’t be taught in a day.”

He’s right, it really is a toughie. Right now, however, there seems to be no way past it. Ergo, it’s only understandable that many in the Ethereum community are praying for ETH 2.0’s phased upgrades to launch quickly, and on time. Until Ethereum does so, the community can uneasily look forward to CZ’s subtle digs directed at Ethereum.


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Source: https://ambcrypto.com/ethereum-binance-smart-chain-and-the-waning-belief-in-decentralization

Blockchain

Mike Novogratz’s Galaxy Digital Filed for Bitcoin ETF With the SEC

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The number of companies filing to receive approval to launch a Bitcoin ETF in the US continues to increase with the addition of Mike Novogratz’s Galaxy Digital. If approved, the Galaxy Bitcoin ETF will trade on the NYSE Arca exchange. 

  • Based in New York, Galaxy Digital is a diversified financial services firm dedicated to the cryptocurrency and blockchain industry. The company has made another pro-crypto step by filing with the US Securities and Exchange Commission to launch its own Bitcoin exchange-traded fund. 
  • The document reads that if the Commission approves the application, the Galaxy Bitcoin ETF will issue common shares of beneficial interest that trade on NYSE Arca.  
  • The value of the shares will follow the performance of the Bloomberg Galaxy Bitcoin index, which includes multiple pricing sources. 
  • “In seeking to achieve its investment objective, the Trust will hold bitcoin and will value its Shares daily based on the value of the Index, which is calculated based on data from bitcoin pricing sources selected by Bloomberg Index Services Limited.” 

  • With Galaxy Digital’s application, the number of US-based companies striving to launch a Bitcoin ETF continues growing. However, the SEC has yet to approve the first such product. VanEck’s filing seems to be a step ahead as the Commission put its Bitcoin ETF proposal for discussion in March. 
  • At the same time, Canada has led the way with several operational BTC ETFs. In fact, Galaxy Digital already has a functioning one in North America. Novogratz’s firm partnered with CI Global Asset Management, and the CI Galaxy Bitcoin ETF launched on the Toronto Stock Exchange (TSX) on March 9th.  
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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/mike-novogratzs-galaxy-digital-filed-for-bitcoin-etf-with-the-sec/

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Blockchain

Where fiat holders lose out, Bitcoiners can gain from inflation

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Currency instability and hyperinflation seemed unreal until a global pandemic struck, sending many nations into economic turmoil. Most economists began to wonder if the end of the pandemic would mean the birth of another Venezuela, which faced a 438% (hyper) inflation rate. However, like several other Bitcoin enthusiasts like Max Keiser thinks that inflation and the price of Bitcoin are correlated.

The aforementioned data is the long-term compounding of past, present, & possibly future base money, since 1970.

In a recent interview Matthew Mežinskis spoke about the inflation rate of the global monetary base, weighted averaged by each base money’s equivalent in USD. What’s important to note here is, it matched the overall 12.8% CAGR (6-year doubling time) we already saw above.

Source: https://platoblockchain.net/wp-content/uploads/2021/04/where-fiat-holders-lose-out-bitcoiners-can-gain-from-inflation.jpg

For all of 2019, central banks were actually on track to deflate their currencies. This would have been a first in the modern fiat era. So interestingly, no matter what one argues for money printing, 2019  ended with positive inflation, weighted at 1.5%.

Furthermore, he touched upon the role of monetary metals like gold. Gold’s rate of growth had, in fact, been around 1.8% per annum for the last 170 years.

Source: https://platoblockchain.net/wp-content/uploads/2021/04/where-fiat-holders-lose-out-bitcoiners-can-gain-from-inflation.png

Almost similar with silver – it’s almost as politicized as its “bigger brother of gold”. Lastly, he shed some light on Bitcoin. He added:

“Remember why the overall compound growth, thus far, is so high, and why it will never be that high again. And now is about the time for a clarification note on the Bitcoin system’s compound annual growth rate, specifically.”

Bitcoin’s finite supply, which may overcome inflation risks is what comforts many. However, this narrative keeps evolving as well.

Source: https://platoblockchain.net/wp-content/uploads/2021/04/where-fiat-holders-lose-out-bitcoiners-can-gain-from-inflation-1.jpg

What’s interesting to note here is, the phrase “supply issuance” for Bitcoin’s chart titles, and not “inflation.” Bitcoin’s “inflation,” economically, was already baked in. As already demonstrated, its growth rate is known until 2141, per the protocol. So when it comes to bitcoins, “inflation” is not the best term.

Even though the price of Bitcoin may indeed surge, its path to the target could be volatile. In the past, the asset’s price has appreciated and even collapsed several times. But some stated that even as Bitcoin increased in price, the rate of inflation, and forecasts for inflation, “remained stable.” Some provide a contrary opinion that economies need a bit more inflation, not less. At the same time, they do not expect hyperinflation to occur again, after the last great recession.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/where-fiat-holders-lose-out-bitcoiners-can-gain-from-inflation

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Holdefi: A Unique Decentralized Lending Platform Shaping the Future of DeFi

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The DeFi industry offering an alternative to traditional financial services is evolving at a rapid pace. There are few platforms that are using the latest advances in the blockchain space to create DeFi solutions that could not only outperform their peers but also capable of adapting to new developments in the blockchain technology itself.

Holdefi is one such open-source, non-custodial decentralized lending platform that offers an attractive passive income stream to investors while enabling the masses to borrow at attractive interest rates. Like its counterparts, Holdefi allows users to instantly secure credit against crypto collateral. The platform does not require the borrowers to provide their KYC or prove their creditworthiness before borrowing. All they have to do is to deposit their crypto assets as collateral to secure a loan in any of the supported cryptocurrencies including stablecoins like USDC, DAI, USDT and BUSD. Users can deposit collateral in one or more types of crypto assets. Similarly, they can borrow different cryptocurrencies using single collateral as long as the value meets the platform requirements.

Attractive Interest Rates and Better ROI

Holdefi uses a mechanism that calculates interest rates for borrowing based on the market and competitive conditions. By doing so, it will balance the demand and liquidity to provide an attractive interest rate to borrowers. Meanwhile, lenders providing liquidity to the supply pool will receive a portion of the interest payments in proportion to the invested amount.

Lenders on Holdefi will get a bigger share of interest payouts in comparison to those on other DeFi platforms as borrowers do not receive any reward or interest on their collateral deposits. So, the lenders end up receiving a proportional share from the overall interest received by the platform from its borrowers.

What Makes Holdefi Stand Apart from the Rest?

Holdefi is an advanced DeFi solution based on the Ethereum protocol. Powered by a native ERC20 standard HLD token, the project is designed to work flawlessly on Ethereum’s existing PoW protocol while being future-ready to operate on ETH’s upcoming PoS upgrade.

The platform witnesses significant upgrades that impart certain qualities of CeFi platforms without affecting decentralization. One such sought-after feature of CeFi is the availability of collateral insurance. While such an option is not available with other DeFi projects, Holdefi solves the issue by separating the collateral deposits from borrowers and liquidity provided by investors into different pools. That way, the collateral won’t be utilized, and borrowers can withdraw it at any time, thus eliminating the need for insurance.

The separation of liquidity and collateral pool will also have a positive effect on Holdefi when ETH 2.0 is implemented as it will speed up the process while keeping transaction costs at a minimum.

Using HLD

HLD is a native ERC20 utility token of the Holdefi ecosystem. Apart from being a mode of value exchange within the ecosystem, it also acts as a governance token imparting voting rights to tokenholders. It can also be used for liquidity mining, staking, and revenue sharing between the participants.

The project has set the maximum supply cap for HLD at 100 million of which 13 million was offered to investors through private and public sales. Recently, Holdefi successfully concluded its private and public sale.

The public sale, a 2-day event starting March 31 was completely sold out within hours of launch. Meanwhile, those who didn’t participate in the token sale can purchase HLD on Uniswap and PancakeSwap

Buy HLD and HODL?

Holdefi is one of the few platforms that has made significant improvements to DeFi lending. It offers a lot of flexibility to users while maintaining strong security features. The future-proof design of Holdefi ecosystem is an added advantage that will make it popular with the crypto community.

While there is no definitive forecast on whether HLD will be an asset due to the volatile nature of crypto markets, Holdefi is an innovative project that is playing a major role in shaping DeFi platforms of the future.

Learn more about Holdefi at – https://holdefi.com/

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/company/holdefi-a-unique-decentralized-lending-platform-shaping-the-future-of-defi/

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