Cryptocurrencies had a great year in 2021. In this period, we have seen the market go from being classified as a billion-dollar economy into a trillion-dollar economy. Aside from that, cryptocurrencies are gaining visibility in the mainstream world with, for example, El Salvador's adoption of Bitcoin as the official digital currency. As a result, investors are looking for the "new Bitcoin" on the market, hoping to find a great alternative in so-called altcoins. Unfortunately, many traders value an altcoin exclusively…
As more people continue to tag Binance Smart Chain as the “Ethereum Killer,” Binance CEO Changpeng Zhao (CZ) has opined that the real Ethereum “killer” is no other blockchain but itself due to performance issues.
In a recent Twitter thread, CZ noted that the success of ETH might become the cause of its downfall, not necessarily other cryptocurrencies.
He wrote, “Vitalik once said (and there is a video of it somewhere), ETH killer is ETH. I believe he is correct, ironically. ETH is overwhelmingly successful. But its success (not other coins) may also be its own killer.”
CZ likened the current state of Ethereum to what happened to Myspace in the early days of the internet. He asserted that the social media platform became too popular and could not handle the load, a fate that might likely become true of Ethereum.
ETH 2.0 Delays Will Kill Ethereum
CZ acknowledged that the smart contracts introduced by Ethereum opened a whole new world of opportunities to explore, including NFTs, ICOs, and DeFi.
However, the scaling solutions currently in place are not user-friendly, thus, limiting their performance. With ETH 2.0 still a long way off from being launched, it could potentially be its killer.
“Ethereum created the smart contract market, which leads to ICOs, DeFi, NFTs, etc. Demand is growing exponentially, the performance of ETH isn’t. ETH 2.0 is still years away. Rollups aren’t user-friendly (the jury is still out). This is the ETH killer.”
CZ: BSC Is Not Ethereum Killer
Last week, Binance suspended all Ethereum withdrawals due to network congestion, and that spurred up the ETH killer allegations again. Members of the crypto community even argued that Binance had hidden agendas which included killing Ethereum.
However, CZ reiterated in his Sunday tweets that the Binance Smart Chain is not the Ethereum “killer” or replacement as it was alleged to be.
He noted that BSC was created with the sole purpose of solving the crucial problem of high fees, adding that the network was also developed using “learnings from Ethereum.”
He said, “BSC is not an ETH killer. It is built with learnings from ETH and tries to help solve one key issue, high fees. It wasn’t designed that way, or at least, it wasn’t presented to me as such. (I was/am not involved in its design.)”