🔴LIVE: Will Everyone Leave ETHEREUM for Binance!?


all right we’re live so welcome back to dappy diversity so today we’ve got um a lot to cover here uh there’s one really big pressing.

   News item that’s on a lot of people’s minds a lot of drama going around this is what’s going on with binance smart chain and people are wondering like hey is this the.

   Next hot block chain is this where all the apps are going to uh people are going to stop using ethereum start using binance you know what do i.

   Need to know about this whole situation maybe you’re hearing this for the first time so i want to cover all that in this video clear that up um let you know my thoughts on there as the situation is unfolding so before we get into that if you’re.

   New around here hey i’m gregory on this channel i turn you into a blockchain master so if that’s something that you’re interested in then smash that like button down below for the youtube algorithm and subscribe to this channel and if you want to become a blockchain master step by step from start to finish head on over to dappydiversity.com for slash bootcamp to get started today all right so we got a lot of people drawing the chat here we got board gordon brad jessica edward slycash uh eugen marvin awesome so let’s go ahead and jump into this um so let’s talk about the situation at hand there’s been a lot of drama going on with this if you all have been you know if you’re on twitter if you’re on any other social media channels you might have been follow along with some of this stuff so let’s just start off with a binance binance coin uh b and b okay so if you’ve been watching the markets at all you know binance coin has been taking off like crazy you know it has has pumped quite a bit over the past month especially in the last few days and part of that’s got to do with binance smart chain uh coming onto the scene it’s been it’s been around for a while right started gaining some traction last year but it started to get this inflection point where a lot of apps have ported over to binance chain i got a lot of activity people and.

   Now the marketing.

   Narrative has basically shifted ethereum‘s gas fees are too high people are just going to use binance chain all that kind of stuff so i want to tell you what i think about this uh in this video um why i think’s going to happen long term probably with this situation uh well i think about it in the short term so let’s let’s go ahead and jump into that someone says right.

   Now the money is uh.

   Nbc uh samara says who really thinks that a lot of people think that that’s where a lot of the marketing.

   Narrative is going right.

   Now so um i want to like set this up okay because i want to be as objective as possible with this assessment uh i want to talk about this from a technical uh perspective and also probably what that means for uh just both technologies like going forward this is.

   Not investment advice this is.

   Not saying what’s going to happen to binance coin this is.

   Not saying what’s going to happen to ethereum coin but i want to look at the situation and tell you why uh things look the way they are okay so what is binance smart chain well basically it it’s it’s a fork of ethereum okay so basically it’s a clone of ethereum um that has some settings changed to make it cheaper to use that’s the that’s the really oversimplified explanation um if you want proof of that you can just go to uh github i mean you can look at the go implementation of ethereum look at the commits in there find like the oldest one from like you know five years ago circle dot yml go to binance smart chain repository circle.yml it this is this is an ethereum core contributor so it it it’s a fork of a theme right so let’s just just that’s the first piece of information okay so why is binance smart chain just cheaper to use like that’s everybody’s like man ethereum just too expensive like why would anybody use it we could just do all this stuff on binance smartshame well basically it sacrifices a core part of ethereum‘s value proposition that um ethereum‘s.

   Not going to sacrifice so let me explain what that is so basically it’s decentralization i’m gonna pull my diagram here so you understand how it works so this is what’s called the scalability trilemma uh i can draw this on the whiteboard but there’s a.

   Nice blog post with a graphic so figure out choose theirs so basically we’re trying to scaling block chains some of the speed and also the uh transaction costs as well you have you have this trilemma so you talk about a dilemma you know a prop that you’re caught between two choices well trilemma is three things you have to worry about security scalability and decentralization when you’re when you’re building a blockchain distributed.

   Network okay when you’re talking about actually uh it build maintain the integrity of blockchain itself so if we wanted to make ethereum faster we could compromise the security but we don’t want to do that we don’t lose money we could uh compromise these are all three benefits and typically one is at the expense of the other that’s a better way of explaining it sorry but basically um if we basically want to achieve scalability we could sacrifice security or decentralization that’s the whole point okay so binance smart chain is compromising on this right here okay so i’ll explain why basically let’s look at let’s just look at actual.

   Numbers i’m trying to be as objective as possible.

   Not trying to be like biased uh i want to give you the facts and help you decide for yourself if you disagree with me that’s okay i’m just going to give you the facts so that you can see transparently what’s going on here so this is a ethereum.

   Node tracker so you can actually see how many.

   Nodes are on the ethereum.

   Network right.

   Now it’s close to ten thousand okay so one of the reasons that ethereum is slow part of it’s it’s it’s the technology is still being developed all right it’s kind of kind of slow because it’s old tech but another big reason is it has to go through all those.

   Nodes in order to achieve consensus so in my decentralization it’s very decentralized so whenever a transaction gets confirmed it’s gotta go through a lot of.

   Nodes in the.

   Network it just that the amount of that round trip is expensive and slow that’s part of the reason okay so binance smart chain i try to look this up before i jump on the live stream um i want to be as objective as possible i don’t know how many.

   Nodes binance smart chain has off top my head but it’s a very small.

   Number i think it’s like 12 and it actually changes ethereum‘s uh consensus model to be i’m pretty sure it’s like a delegated proof of stake model so the whole idea is it’s a very small.

   Number of validators it’s.

   Not really decentralized in the same way that ethereum is and that does present some key problems for the technology for certain types of users okay um so we’ll pause there we’ll pause there.

   Now we’ve seen the analysis let’s pause there okay because some people will say like well users don’t care about decentralization right they just care about the gains they’re going to get from going over to binance smart chain throwing their money at the casino putting money in the money printer and like watching the yield farming gains come in that’s true that is true okay there’s been lots of people who fit that profile somebody says poa plus pos consensus so yeah yeah you can fact check me on some of the minor details here i’m trying to give you the big picture because i mean you know i’m i’m.

   Not 100 expert in every single alternative blockchain solution out there i’m trying to give you the best my best understanding as i can on this video if you want to iron out some of the details you want to leave a critique down in the comments i’m open to uh ideas but that way so some people will say like hey um users don’t care about decentralization they just care about the gains that’s true some some to some people that is true until until the lack of decentralization actually affects them okay well there’s two things one if the gains disappear they’re.

   Not going to care about the technology anymore.

   Number two if decentralization actually.

   Negatively impacts them then they could part of the reason that the decentralization is important on ethereum is its censorship resistance so what happens if a regulator decides to shut an app down on binance smart chain and binance controls all the.

   Nodes there’s a compliance issue there all right so i mean it’s this whole point it’s like a decentralized distributed.

   Network it is supposed to be cross-border it’s supposed to be distributed it’s supposed to be hard for people to take it down that’s.

   Not really the case on a centralized solution like this okay so that’s that’s the gist that that’s the gist of the underlying problem here with the technology and why we can’t just like oh how come this scales why can’t we just make ethereum do that well because we’re trying to preserve a different set of values that will actually be a stronger value proposition for ethereum over the long term so the other type of thing is i mean sure you know uh binance smart chain or the binance coin has gone up like crazy um with you know on the charts i i don’t think like grayscale is buying b and b coins to put in a trust anytime soon i could be wrong about that i don’t think banks are going to use like binance smart chain as a settlement layer in between their with looks like stable coin settlement like i don’t think binance is going to replace swift um i don’t.

   Necessarily think we don’t have a guarantee that ethereum is going to either that ethereum‘s be the magic solution to those things but if we’re talking about decentralization actually being a core value of blockchain technology that makes it a strong value proposition for people who actually know what’s going on and have to make really important decisions i think ethereum is still a strong strong contender in that regard okay um so yeah retail users who are just gambling basically and want to go to the casino and flip coins you know they don’t care you know they’re they’re taking risks anyway i i don’t.

   Necessarily buy the whole fee argument anyway saying like oh ethereum‘s fees are too expensive yeah i mean i think a lot of people are just going to buy and change to chase the gains and as soon as those gains disappear they’re they’re gone that that’s that’s how i feel a lot of this stuff.

   Now i could be wrong this is this is just my thoughts in the moment the other big thing to think about are the builders okay so um well two other things about i mean as soon as as soon as we get some more layer layer two on ethereum we we can see some of this stuff start to subside a little bit it’s hard to say the but the other big thing i wanna talk about is the builders are good so one of the big strongest things that uh like i wouldn’t underestimate the ethereum community i’ll put it that way because of the builders for lots of reasons so a lot of the ethereum builders are the ones who have created the innovative technology on top of ethereum and a lot of them are very idealistic idealistically driven i’m.

   Not saying that’s a guarantee that those values will win out in the long run but that’s where a lot of the talent a lot of innovation happens and a lot of what gets poured over to buying a smart chain or just copies of what’s been done on ethereum i mean binance smart chain is a copy of ethereum i just showed you the code of it um you know if you look at like pancake swap it’s literally just a fork of uni swap you can go pancake swap core look at the commits let’s look at the oldest one typescript config i mean it’s by uni swap contributor engineering lead at uni swap uh you can go side by side with the uni swap repository here’s the exact same file all right yeah anyway so i mean i know forking happens all the time in d5 as long as the license agreements support it it’s.

   Not like illegal or unethical.

   Necessarily i get that i get like the most original doesn’t win out in the end.

   Necessarily i get there’s lots of factors here but uh i don’t think you’re going to.

   Necessarily see the same level of innovation on something like binance smart change you will on ethereum i think we’re still going to see a lot of copycats i think there will probably be a little bit of a bubble here that’ll pop when those gains go away.

   Now a lot of people are gambling on ethereum you know there’s lots of casino stuff going on in d5 too i’m fully transparent about that and i know that’s a that’s a thing too but um i don’t know we’ll we’ll see we’ll see let’s read some of the comments here all these builders yet.

   No one could solve the fee issue part of that’s adoption of layer 2 technology well we don’t want to i’ll put it this way we don’t want to solve the fee issue by basically taking ethereum.

   Nodes raising the gas limit to just insanely high amounts giving central control over a very small group of people uh you know what i mean that’s that’s.

   Not what we want to do um i mean i mean the market will decide in the end maybe the market you know moves over and does a lot more stuff on but i think retail is going to do a lot of stuff on binance smart chain but like i said i don’t think we’re gonna use finance smart chain for like inter bank settlement borderless stable coin famous i just don’t think that’s what’s gonna happen um so another people would say like hey you know binance smart chain um it’s gonna decentralize later right it’s centralized.

   Now but we’re gonna we’re gonna move into a decentralized direction i really don’t think that’s true because as soon as you have all these users that are used to paying uh these super low gas fees let’s just look here and you’ve already like compromised this to achieve this then you’re gonna have to turn you’re gonna you’re gonna lose this whenever you increase this because you haven’t come up with a more innovative solution to figure out the gas fees uh you know what i mean so it’s like i don’t really buy that binance is just going to start decentralizing and take basically rug pull their users you know i mean with.

   Now they have higher gas fees and they have all these tokens that are stuck in yield farming projects and stuff like that i just don’t think that’s going to happen why do ethereum projects take so long i’m assuming you’re talking about the ethereum infrastructure itself uh well if you’ve been if you’ve seen them live stream so far i think part of it’s got to do with um it’s part of it’s the ethereum organization but part of it’s it actually is a technically hard problem to to get the best of all these worlds the best trade-off without just like completely chopping off your legs and.

   Not even really being a blockchain and just being like a database run by a dozen or so people so somebody says don’t be stupid b and v is super centralized that’s just a comment from below those are my actual words okay so um i’m trying to see if there’s any other uh questions about this here so somebody said do you think that people more care about sorry it’s harder sometimes hard to read the chats because it moves so fast do you think that people care more about convenience and lower fees than more decentralized.

   Network lots of people don’t know enough and are chasing the hype well i think your question says a lot right there people were chasing the hype okay so you’re probably just jumping on the stream right.

   Now that did say this a minute ago um where basically yeah people are chasing the gains if the gains go away they won’t care anymore that’s also to some extent true for ethereum um but the par part of it is um sorry i got a little distracted for a second so if the gains go away part of it is what i talked about a minute ago where big players will care about decentralization i think some massive whales are gonna care about decentralization um i think that there’s yeah there’s gonna be lots of whales lots of people who are early in the space who are hardcore you know decentralizers um or decentralized basically hardcore people who really highly value decentralization that’s going to be a camp um but part of it is also the institutions you know bigger bigger players that are going to care about it because they’re going to make an informed decision on what technology they’re going to use yeah and i don’t i just don’t think they’re going to i don’t think they’re going to use binance smart chain like i said for interbank settlement or something like that it’s.

   No guarantee they’ll use ethereum either but i definitely don’t think you know bsc is going to be it so that being said also one thing i want to mention is like everything that i teach on this channel about how to create smart contracts how to code for solidity how to use blockchain how to put it on blockchain you can still do all that stuff on binance smart chain that’s one of the reasons it’s so easy that’s why you see this massive uh explosion of applications on top of binance smart chain is because if you can develop for ethereum you can develop for binance smart chain i mean it’s a fork of ethereum it just changes how it works okay so that’s the other thing is like in a sort of semi like dystopian world where you know binance smart chain is.

   Now what everybody uses um them i mean the skills transfer over okay so if you’re a developer you’ve been watching this channel you’ve learned all this stuff your skills still transfer all right so i mean a lot of what i’m saying a lot of what i’m doing doesn’t fundamentally change but the underlying technology does and i don’t know i i think there’s a lot of hype right.

   Now we’ll see what happens so uh i want to jump into one other piece of.

   News here but slightly unrelated to binance uh but it’s still still awesome for d5 so when i go through this uh and this and this actually does tie in in some way okay so going back to mark cuban we talked a lot about him on this channel big time ethereum bull big time blockchain bull was in the d5 space last summer i’ll go through this thread because he’s responding to uh the hearing that was happening over gamestop okay so if you guys don’t remember you know the game stop the wall street beth saga that was happening just a few weeks ago um decentralization is part of the ethos that fixes a lot of that whereas like you know a centralized quote-unquote blockchain is.


   Necessarily all right um but let’s go through mark cuban’s thread here so the problem brokers trade at the speed of light but settles trades over two plus days this can happen again coordinated traders can b e hunt uh sorry coordinator traders can hunt better capitalized platforms and make gme style buys solutions blockchain okay so while blockchain is the best long-term solution and the interim the solution one uh is to require stocks to be held for at least one minute we.

   Need to decide what is the purpose of the markets where the purpose markets are is it to raise cap and allow owners for machines or to extract money from investors so basically what he’s talking about is blockchain makes a lot of this a more fair level playing field uh we talk about the big guys versus the little guys um you know the whole tension that we’re seeing sort of the populism of the wall street bets saga where they basically like the elites the institutions uh the deck is stacked in their favor um yeah so this is mark talking about this more it’s more blockchain decentralization values being elevated up into the mainstream okay i think i think this is huge i think a guy like mark cuban smart enough for sure for sure for sure um to understand the value proposition of decentralization on ethereum versus something like i think he understands it like minus smart chain probably isn’t it all right so let’s see i’ll try to answer a couple more questions here fees are too high simple as that yeah that’s true i’ve been talking about them on the stream quite a bit you go back and watch the replay i think that’s why we’re jumping over yeah it’s because of the fees and they don’t care about decentralization but i yeah it’s hard to say what’s gonna happen long-term with that i think a lot of it’s short-term hype people jumping over there yeah if we see any kind of regular regulation regulatory pushback on any specific specific apps then he who controls the.

   Network has to shut the apps down but if it’s a decentralized.

   Network and the app is.

   Now spread across 10 000 computers you can’t really shut the app down that’s part of the value proposition of decentralization as a censorship resistance binance can be censored by outside regulators finance could theoretically turn something off if they don’t like it like that’s that’s yeah it’s about saving money that’s about making money it’s.

   Not about saving money it’s about making money because they’re they’re going to finance to play the casino right.

   Now that’s what’s going on so does eath 2.0 do anything to lower the fees so a lot of the um improvements going to come from layer 2 scaling solutions and we’re going to have those with east 2.0 as well so we’re gonna move a lot of stuff to layer two um the current plan for ethereum is to merge ethereum one as a shard into ethereum to the layer twos would remain that’s my understanding and uh that’s what will help a lot with fees we’ll still have like it’s still gonna cost my understanding is the gas cost is still going to remain on eth2 like a 21 000 transaction of ether my understanding is that will remain on these two um but you’re going to get this extra like the layer two is gonna help a lot with that e 2.0 whim we don’t know saving money is making money okay somebody says do you think binance might consider more decentralization after this boom.

   No i don’t think so because there’s.

   No incentive for them to do that i talked about that a minute ago but as soon as you like like you’re gonna have to yank these you’re gonna have to you’re gonna have to you’re getting this at a cost of this so you’re getting scalability at the cost of decentralization so.

   Now you have all these users who have been paying low fees and you have.

   No superior tech technology to basically like somehow magically make this better without destroying this so your users are all going to leave your platform if the fees increase or let’s say like.

   Now you became more decentralized and the fees increase and all your tokens are locked into a yield farm and it’d be unprofitable for you to remove them they’re.

   Not gonna do it they’re.

   Not gonna do it so what do i think about uh ada or cardona and polkadot so i made a video on my channel about cardone polkadot you can check those out if you want to it’s as far as the comparison of the two technologies right.

   Now um i mean polka you know cardano definitely is uh positioned themself an ethereum killer i mean that’s literally the core of their marketing message is like we don’t like ethereum it’s an inferior piece of technology and we want to take it over and literally the core their marketing message um the problem with that is like you don’t have smart contracts on cardona right.

   Now you know it’s like um i know that’s i see lots of angry people in the chat who are going to get mad at me for talking about this but um yeah you don’t you don’t have smart conscious card i don’t know.

   Neither carano or polkadot have delivered on all their long-term promises um and act like they’re just like all in the bag i mean i i don’t think like polka dots marketing message is quite as predatory but you know i would be skeptical but that way you can check out my video for a more detailed kind of.

   Nuanced explanation of of what i think about that somebody says eath fanboy well yeah i’ve also mentioned that other videos as well um part of it’s just the investment and actually understanding what’s happening here so yeah i mean like looking at all this stuff part of it’s actually but part of its practicality utility have i vest invest a lot of time effort energy you know money into this stuff of course i have but part of that’s a big conviction bet i mean if i’m a smart contract developer i can’t put one on cardano right.

   Now you know what i mean like uh if i actually want to build a decentralized application that’s censorship resistant i can’t do that on binance smartchain because it’s.

   Not decentralized okay so i mean we’ll see we’ll see what happens long term i’ve outlined my thoughts in pretty great detail on this channel on these live streams you can check those out you know if you have a valid criticism other than just like ad hominem attack i’d be happy to talk about them all right everybody i’m gonna do one more question then we’ll go ahead and sign off here for today so somebody says will bsc have expensive gas fees too well if they actually go through and decentralize more they’ll probably have more expensive gas fees but that’s.

   Not gonna happen okay let’s see here all these questions i’ve answered already see so what happens to eth1 will become same values each two so i’ll go ahead and finish this question um so e your eth on eth1 will transfer over to east too uh the only thing you have to do actionable right.

   Now is if you want to become a valid ethereum 2.0 which is vast majority of people watching this um video will.

   Not want to do that because you.

   Need 32 ether you.

   Need to send it to the beacon chain and lock it up for a very long time can’t get it back till we exit the space so that requires you to like go through a bunch of steps um but if you just hold these you don’t have to worry about anything it’ll be one for one transfer it won’t fork you won’t get.

   New coins or anything like that um yeah that’s it all right everybody that’s a got for today hope you like this video as always smash that like button down below for the youtube algorithm scrap subscribe to this channel if you haven’t already uh really help these videos out some more people learn about blockchain if you like these videos you want to take the.

   Next step hey you want to take a master shortcut entirely uh i can try to match your blockchain step by step from start to finish over at dap university dot com forward slash boot camp you don’t be an expert to get started today show you how to become a blockchain developer in a matter of months okay so as always um you know if you want to play around with binance smartchain you can take in the tutorials of it on my channel uh compile them put them on binance smart chain i don’t really care okay i just want you to actually know what’s going on with underlying technology what my thoughts are on this because it’s.

   Not to bash anybody’s investments what they’re invested in what consumers actually might want you know depending on lots of different factors i was giving you my analysis because i have a responsibility that as an educator in this space to let you know what’s happening so that’s all i’ve got until.

   Next time

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