Binance (BNB) Smart Chain White Paper Released. What Does This Mean For Ethereum (ETH), EOS (EOS) and Tron (TRX)?

Opinions
Fri, 04/17/2020 - 11:21
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Vladislav Sopov
In the dApps hosting market, 92.8% of dApps are on Ethereum (ETH), EOS (EOS) and Tron (TRX). Now, Binance Chain has arrived as a new challenger
Binance (BNB) Smart Chain White Paper Released. What Does This Mean For Ethereum (ETH), EOS (EOS) and Tron (TRX)?
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The Binance cryptocurrency exchange ecosystem has broken into the decentralized application building market. They created a special parallel blockchain, Binance Smart Chain, to land smart contracts.

Smart contracts welcome on Binance Smart Chain

It was announced today that Binance started the native Binance Smart Chain, which is a 'parallel chain' to Binance Chain. Thus, it will be cross-chain interoperable by design. It will use a Proof-of-Stake Authority consensus, so Binance Coin (BNB) staking will be available.

The Binance Smart Chain will host smart contracts. It will interact with the existing Binance Chain via sophisticated software architecture. According to the project white paper released today, this separate chain is required because:

The execution of a Smart Contract may slow down the exchange function and add non-deterministic factors to trading

Binance Smart Chain is Ethereum-compatible. Why does it matter?

When making the decision to launch BSC, Binance was aware of the situation on the dApps market. It looks like Ethereum (ETH), Tron (TRX) and EOS (EOS) platforms have managed to address the needs of dApp builders. As no next-gen platform like Matic (MATIC) or IOST (IOST) can compete with the Big Three, no prominent competitor has arisen.

Related
TRON (TRX) 'Surpasses' EOS as dApps Platform. Really?

That said, it's very crucial that Binance decided to make its chain EVM-compatible instead of using a Tendermint-based virtual machine. They highlighted in the WP that all Ethereum-based dApps:

will work with Binance Smart Chain and require zero or minimum changes

To sum up, this release poses one more threat to the Ethereum (ETH) domination in the dApps hosting room.

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About the author

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.)

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