Thus, Binance is more than happy to collaborate with the team and build a shared vision. In the press release from Binance Labs, the investment director, Peter Huo, said that Multichain is an important contributor to the future of multi-chain on the blockchain. With over $5 billion total value locked, the protocol currently has more than 300,000 users. Multichain, formerly known as Anyswap, is an infrastructure developer for various blockchains, including Binance Smart Chain (BSC), Avalanche, and Ethereum. The $60 million investment round led by Binance Labs also included other major investors such as Sequoia China, Three Arrows Capital, Hypersphere Ventures, Circle Ventures, DeFiance Capital, IDG Capital, Magic Ventures, HashKey, Tron Foundation, and Primitive Ventures. The venture capital arm of the largest crypto exchange, Binance Labs, is part of the new investors in the cross-chain protocol, Multichain. Defiprime has a rundown of all the product and infrastructure pieces still missing on BSC. It’s hard to imagine any independent project using BSC as a home base.Ĭalvin Chu had the best Twitter thread laying out the bull case for BSC, followed by Fiskantes’ CeDeFi explanation of BSC. Binance actually has experience here, but I don’t think Binance Launchpad rivals the ICO boom or DeFi summer. Even if trading and lending move away from Ethereum’s base chain, token issuance may remain or move to a secure Layer 2. It’s hard to overestimate how important the ERC20 token standard is multi-billion dollar protocols store their cap table in an Ethereum smart contract. Building products and attracting users is great, but the chain where tokens are issued will maintain a liquidity edge. BSC can capture volume from Ethereum’s overflow but will new projects launch first on BSC? Non-crypto developers may be a better target, but they don’t know Solidity or use Metamask. While users/investors are ultimately looking to make money and will gravitate towards useful products, BSC is specifically targeting Ethereum developers and users by using its wallet and tooling. To state the obvious, BSC is not pushing decentralization forward. Lending markets and the expanding market for on-chain collateral are very important. They all want a liquid token for DeFi, and BSC could be the best EVM chain to trade BCH, DOT, XRP, ADA or even BTC. There are still a lot of blockchains with large valuations, many of which trade heavily on. BSC will compete for non Ethereum-native assets. How will it be different? One negative and two positive things going for Binance: It’s not a bad bet but it’s certainly a crowded field. Binance is betting on a multi-chain future and hoping BSC can be one of many EVM compatible chains that help Ethereum scale. Like xDai, it is a sidechain, so it is only as secure as the nodes powering the network and is reliant on a bridge, and like xDai it comes with Metamask integration and all the same developer tooling as Ethereum. With the growth of Ethereum and the DeFi boom, Binance pivoted and launched BSC, a new, EVM-compatible sidechain where 15 of the 21 nodes are controlled by Binance. Binance Chain or Binance DEX launched almost two years ago it used Tenderbmint BFT for consensus for never found traction. It also has more incentive to innovate it needs a long-term solution to its regulatory cat and mouse game.īSC is actually Binance’s second attempt at a blockchain. We should be extremely skeptical of these numbers, but at the same time, not underestimate the type of liquidity that Binance can drive - is averaging $15bn of volume a day in 2021. PancakeSwap, a Uniswap Clone, reports over $3bn of assets locked up and over $750m in daily volume after just launching a few months ago. The overnight success of Binance Smart Chain (BSC) is due to Ethereum’s astronomically high fees and Binance’s clout as the largest player in crypto.
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