bnb chain is the 3rd largest blockchain by Market cap outside of Bitcoin and Ethereum.
Yet, despite its size, there is surprisingly very little content covering it.
I spent the past 3 weeks researching the BNB blockchain in depth. Here are my findings 👇
In order to make it easier to digest I focused on 3 main aspects of BNB Chain:
⚙️ The underlying tech/protocol 📱 The BNB Smart Chain dapp ecosystem 🤝
The BNB Community
Let's dive in!
For starters, it's important to note that BNB Chain stands for 'Build N Build'
This was a recent rebranding exercise to move away from the Binance naming
It's also worth noting that the BNB Chain actually consists of multiple different chains...
BNB Beacon Chain (previously Binance Chain) - BNB Chain for Governance (Staking, Voting)
BNB Smart Chain (BSC) (previously Binance Smart Chain) - EVM compatible, consensus layers, and with hubs to multi-chains
BNB ZkRolllup (Coming soon)
It's worth understanding the history of how BNB Chain launched, specifically the Smart Chain.
This congested the Ethereum network leading to high fees + slow confirmations...
Unlike other Layer-1s, instead of trying to rebuild from the ground up, they hard forked Go Ethereum protocol, and changed the consensus mechanism to 'Proof of Authority'.
This makes the network faster & cheaper.
However, it comes at a major cost... CENTRALIZATION!
It had initial max supply of 200M
40% went to founders, 10% went to angel investors, 50% went to public sale
Note: This ICO is the subject of scrutiny by US regulators
They will do this until BNB reaches 100M total supply.
This is good for holders because this makes BNB a DEFLATIONARY asset.
So far he has been 💎
but that is a massive concentration
No wonder he is the richest person in crypto
This has allowed BNB to bootstrap a large number of dapps & developers.
Also the majority of the dapps have very few MAUs
@compoundfinance @Uniswap @cz_binance @DappRadar @ethereum @PancakeSwap There are some familiar names on BNB such as @Stepnofficial , @1inch , etc. But for the most part, the apps seemed to be low quality cash grabs.
This was also apparent in the fact that most of the dapps didn't seem to have active communities:
If you simply search bnb
in your discover feed, you'll find it littered with scammy promos and bots.
There doesn't seem to be any sort of real conversation happening anywhere
I even went to a BNB Chain IRL event at Consensus 2022. After talking to 40+ people, I didn't meet a single one that was still actively involved with BNB Chain 🤯
@compoundfinance @Uniswap @cz_binance @DappRadar @ethereum @PancakeSwap @Stepnofficial @1inch At this point you may be asking how BNB Chain has managed to grow to such a large market cap despite seemingly not having a passionate base of builders and users?
I believe that there are a few reasons for this...
Specifically, they have completely brushed off centralization concerns in order to have a smoother experience
This is attractive to many mercenary builders/users who want to make quick
@compoundfinance @Uniswap @cz_binance @DappRadar @ethereum @PancakeSwap @Stepnofficial @1inch The 2nd, is that they have a massive backer in Binance/CZ behind them. Binance is the largest crypto exchange in the world.
So they are able to pump liquidity into the ecosystem directly & indirectly by inflating coin price by holding their coins/burning existing supply
That is why he has focused so much effort on the tokenomics and making the BNB Chain attractive for speculative activities
The 'Build N Build' naming is just a head fake to distract from the truth
@compoundfinance @Uniswap @cz_binance @DappRadar @ethereum @PancakeSwap @Stepnofficial @1inch To conclude, BNB takes the title of the 1st blockchain that I have walked away from with a bad taste in my mouth. These feelings are driven by the fact that the blockchain embodies centralization, speculation & a mercenary culture.
I try to be as objective as possible in my analysis and ultimately, all I want is to see the Web3 space grow in a healthy manner.this twitter thread.