I have a reputation for throwing rocks at what I see as fundamental mediocrities in the cryptocurrency space so forgive me if what you're about to read comes across as indelicate, but I wanted to take the time to pen this article about specifically why the lack of decentralization among some blockchains is, on a most a fundamental level, entirely antithetical to the values of the cryptocurrency movement.
We're currently spoiled for choice when it comes to blockchains, and as I gaze out over the towering stacks of cryptocurrencies, tokens, and allegedly decentralized-finance protocols all I see is an ever-growing stinking pile of horseshit. It’s almost cliché to say 99% of cryptocurrencies are a scam, by as the industry seeks to be taken more seriously in the eyes of the legislature and perilously avoids the looming spectre of outright condemnation by governments of the world is it not now necessary draw a line the sand?
When I say cryptocurrency, I don't mean the DE-FI protocols that advertise themselves and DE-FI but cannot possibly be decentralized. Take the Binance Smart Chain for instance. No cryptocurrency project launched on the Binance Smart Chain can possibly be decentralized. Binance controls all of the validator nodes for their blockchain, it is impossible to make the claim of decentralization not only for Binance, but for any DE-Fi protocol building on Binance. To outline the severity of this, allow me now to share with you a most inconvenient truth. When a project on the Binance smart-chain claims to be a DE-Fi protocol, they are lying to you. Not only are they lying to you, but they are also actively and maliciously deceiving every single newcomer to the cryptosphere.
Decentralization is important. Decentralization matters. Decentralization is key to the future of this industry. If the project you are invested in is not making active efforts to increase the level of decentralization in the organization then they are stealing from you what it means to be a crypto investor. They are stealing your autonomy from you, they're stealing your freedom from you, and they are a plague on this earth no different from the traditional institutions of finance.
In the same way that you do not have control over the Fiat money in your bank account, you do not have absolute control over your crypto if the underlying protocol is not sufficiently decentralized.
Why Do Projects Start On Chains Like BSC?
There are a number of possible reasons, the most common among them is a severe lack of education. The vast majority of new investors getting into crypto don't understand that Binance is just like the bank even when the tokens appear in your metamask wallet. Launching a project on the Binance Smart Chain is forgivable only when the founders of the project do so without an adequate understanding of what it means to be a cryptocurrency project. Ignorance is only a valid defense while education around the importance of decentralization is so lacking.
I personally do not hold a single token on the Binance Smart Chain or any other centralized protocol, and strongly recommend avoiding any crypto project that does not have a fundamental understanding of the importance of decentralization.
For projects that are currently on that chain, there only one possible solution. Leave. Find a way to get off the Binance Smart Chain as quickly and efficiently as possible. Migrate to a blockchain with true decentralization before it is too late. The crypto world is slowly waking up to the importance of decentralization, new investors understanding the importance of decentralization has never been more important, and advocating only for projects that adhere to these underlying principles is paramount to ensuring the traditional systems of finance melt away into insignificance.
Will Things Change?
I hope they do, I genuinely hope they do. Because if they don't, if we continue to see growing support for the Binance Smart Chain and centralized cryptocurrencies were all just lambs to the slaughter. With the advent of the Edinburgh decentralization index for cryptocurrencies there is hope yet that people will be empowered with the knowledge to make informed and rational investment choices when engaging with the ever-expanding and evolving cryptocurrency industry. But we can't stop there.
When I speak to a friend who is invested in a centralized cryptocurrency I see them as some kind of drug addict, desperately in need of help and not understanding the harm they are doing to themselves and the people who care about them. Promises that it will be “just one more token launch” before they quit sound identical to the desperate alcoholic who needs just one more sip or the godforsaken crack addict needing just one more fix. Friends don't let friends invest in centralized blockchains. It's as simple as that.
I'm Invested in a project on the Binance Smart Chain, what should I do?
First, you're going to need to have a hell of a lot of trust in the people running the project. Secondly, insist they migrate to a decentralized chain. If they're worth their salt they'll do it. If not, it may be time to cut your losses.
Time will tell if our financial future remains governed by centralized oligarchs or is placed in the hands of the people. It's only through our combined effort that we'll be able to set ourselves free from the shackles of centralized finance. Together we can change the world, but we vote with our wallets. Literally. So when you vote, when you choose which blockchain to invest in, please, for the sake of our industry, vote wisely.