Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on January 30, 2024, 11:57:13 PM
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The cycle 2020 is the successful explosion of new Layer-1 blockchains such as Solana, Avalanche, Near, Fantom... Big CEXs are not left out of the Layer-1 trend, each CEX in turn introduces its own Layer-1 blockchain:
- Binance introduced Binance Chain and Binance Smart Chain, now BNB chain (https://www.bnbchain.org/en)[1].
- Houbi introduced HecoChain (https://www.hecochain.com/)[2].
- OKX introduced OKchain (https://www.okx.com/oktc)[3].
- KuCoin introduced KuChain, now KuCoin Community Chain (https://www.kcc.io/)[4].
Among these 4 blockchains, I have only experienced BSC because it is really famous for its large ecosystem[5] and full of necessary products for users such as PancakeSwap, TrustWallet, Alpaca Finance.... The heart of the ecosystem is Binance CEX, which along with the impressive price increase of BEP-20 tokens has attracted both attention and cash flow from investors in the crypto market. BNB chain is an EVM-enabled blockchain so it is easy to get Devs, Dapps and users from the Ethereum ecosystem. All operations with BEP-20 tokens are also extremely familiar right on familiar crypto wallet applications such as MetaMask, TrustWallet... Users will use Ethereum addresses on all EVM blockchains.
Currently, the remaining 3 blockchains (Heco, OK, KuCoin) are still active and have their own developers, but compared to the BNB chain, they are almost unable to compete in terms of market share. HecoChain is also an EVM blockchain, but I have never experienced it, I only know the only HRC-20 token is native HT token. BNB chain has become a famous Layer-1 blockchain, competing with Ethereum, Solana, Avalanche...
Recently, Coinbase introduced Base blockchain - Layer-2 of Ethereum[6]. I see Coinbase's ambition to create its own ecosystem like Binance did. However, Base will have to compete with very strong Layer-2 blockchains such as Optimism and Arbitrum. The competition in the blockchain market is extremely fierce, the weaker will be eliminated and forgotten.
Do you think in the next cycle, will other exchanges continue to introduce their new own blockchains? Can blockchains backed by CEXs compete with independent blockchains that do not rely on CEXs in the market?
[1] Everything You Need to Know About Binance Smart Chain (BSC) (https://www.blockchain-council.org/cryptocurrency/binance-smart-chain/)
[2] Understanding the HECO (Huobi ECO) Chain (https://cryptotvplus.com/2022/01/understanding-the-heco-huobi-eco-chain/)
[3] OKEx launches a decentralized exchange and the OKChain Testnet; can it compete with Binance? (https://cryptoslate.com/okex-launches-a-decentralized-exchange-and-the-okchain-testnet-can-it-compete-with-binance/)
[4] Discovering Kucoin Community Chain (https://www.yadaontheblock.com/post/discovering-kucoin-community-chain)
[5] BNB DeFi Ecosystem (https://defiprime.com/bsc)
[6] Coinbase Officially Launches Base Blockchain in Milestone for a Public Company (https://www.coindesk.com/tech/2023/08/09/coinbase-officially-launches-base-blockchain-milestone-for-a-public-company/)
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Recently, Coinbase introduced Base blockchain - Layer-2 of Ethereum[6]. I see Coinbase's ambition to create its own ecosystem like Binance did. However, Base will have to compete with very strong Layer-2 blockchains such as Optimism and Arbitrum. The competition in the blockchain market is extremely fierce, the weaker will be eliminated and forgotten.
[6] Coinbase Officially Launches Base Blockchain in Milestone for a Public Company (https://www.coindesk.com/tech/2023/08/09/coinbase-officially-launches-base-blockchain-milestone-for-a-public-company/)
I am more interested in discussing Coinbase because as far as I know Coinbase is a market that has a high level of trust.
Many whale investors are in Coinbase and token owners (CEOs) of a project cannot just be listed on the Coinbase market.
Then now Coinbase will launch its own blockchain called "Base", maybe if it is compatible with the Ethereum Virtual Machine (EVM) it can create the name "BSE20". ;D
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Recently, Coinbase introduced Base blockchain - Layer-2 of Ethereum[6]. I see Coinbase's ambition to create its own ecosystem like Binance did. However, Base will have to compete with very strong Layer-2 blockchains such as Optimism and Arbitrum. The competition in the blockchain market is extremely fierce, the weaker will be eliminated and forgotten.
At this point, i already lost how many L2 for ETH out there. They should've build Bitcoin sidechain, since currently only Liquid and Rootstock exist.
Do you think in the next cycle, will other exchanges continue to introduce their new own blockchains?
If they do their research (like what you did), i expect they wouldn't take such risk.
Can blockchains backed by CEXs compete with independent blockchains that do not rely on CEXs in the market?
Probably no. There so many non-decentralized blockchain (even if they claim the opposite), so without major backing and innovative feature, i expect such blockchain will failed or unpopular.
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Low fees and quick profits resulting from hot money are what make this market explode, and as long as these conditions are met, the price will inevitably increase.
The 2020 cycle witnessed an additional factor, which is that the interest was close to zero, which made the DeFI market grow, given that the interest they offer is higher, and therefore hot money is present and profits are present, and therefore DEX has grown, which is something that is not currently available.
During this year, I see that the biggest opportunity is in the second layer solutions, as the average fees have increased, and people will think about the second layer solutions, and there may be a percentage of privacy coins.
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I am more interested in discussing Coinbase because as far as I know Coinbase is a market that has a high level of trust.
Many whale investors are in Coinbase and token owners (CEOs) of a project cannot just be listed on the Coinbase market.
Then now Coinbase will launch its own blockchain called "Base", maybe if it is compatible with the Ethereum Virtual Machine (EVM) it can create the name "BSE20". ;D
Since Base is Layer-2 for Ethereum, I think they will probably have an ERC-20 native token, similar to Arbitrum's ARB token.
Coinbase CEX has millions of users, who could be potential users for the Base blockchain.
At this point, i already lost how many L2 for ETH out there. They should've build Bitcoin sidechain, since currently only Liquid and Rootstock exist.
If they do their research (like what you did), i expect they wouldn't take such risk.
Probably no. There so many non-decentralized blockchain (even if they claim the opposite), so without major backing and innovative feature, i expect such blockchain will failed or unpopular.
Everything depends on the goals and expectations that Coinbase is placing on Base, maybe they see Ethereum as an ecosystem with greater liquidity, more Dapps and users than Bitcoin so they want to support Ethereum and participate in Layer-2 trend.
We have seen the success of BSC, if Base can do the same, we can see Base becoming a major force in the crypto market in the upcoming cycle 💪
Low fees and quick profits resulting from hot money are what make this market explode, and as long as these conditions are met, the price will inevitably increase.
The 2020 cycle witnessed an additional factor, which is that the interest was close to zero, which made the DeFI market grow, given that the interest they offer is higher, and therefore hot money is present and profits are present, and therefore DEX has grown, which is something that is not currently available.
During this year, I see that the biggest opportunity is in the second layer solutions, as the average fees have increased, and people will think about the second layer solutions, and there may be a percentage of privacy coins.
Layer-2 trend is quite hot and attracting users, Arbitrum and Optimism have proven this and Base participates. Base's transaction fees are quite cheap and will become even cheaper in the future thanks to the DenCun update on Ethereum.
The opportunity for Base is huge, as long as Coinbase has enough money to support new projects developing on the Base blockchain 😁
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I used the BNB network and was generally satisfied. I used the Huobi network for a few testnets. I bought Kucoin but did not use its network. I did not buy Okex and did not use its network. No doubt these networks will be synonymous with CEXs and will be as successful as CEXs have been. In the next bull, BNB will again try to develop its own network and I think it will have some success, but I don't think the same for the other networks. Exchanges have launched their own networks because the future is in decentralized systems, but we also need centralized exchanges. I think they panicked a little bit unnecessarily.
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I assume that before any exchange that is backed by another blockchain will decide to develop their own blockchain network, they must have seen a huge success or growth in the current services that they offer. Binance exchange has really become a large exchange in some countries but things could also change in the future and before you know it, another exchange could just emerge and also become very successful.
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Since Base is Layer-2 for Ethereum, I think they will probably have an ERC-20 native token, similar to Arbitrum's ARB token.
Coinbase CEX has millions of users, who could be potential users for the Base blockchain.
Ah I see, but why did Coinbase choose Layer-2 Ethereum?
Why doesn't Coinbase create its own blockchain to be more confident.
So that's it, Coinbase has millions of users who trade on the market every day, but why did Coinbase create Layer-2 of Ethereum?
Do you have a detailed explanation regarding CEX Coinbase why not create its own blockchain?
If you have such information, please explain it to me. :)
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I used the BNB network and was generally satisfied. I used the Huobi network for a few testnets. I bought Kucoin but did not use its network. I did not buy Okex and did not use its network. No doubt these networks will be synonymous with CEXs and will be as successful as CEXs have been. In the next bull, BNB will again try to develop its own network and I think it will have some success, but I don't think the same for the other networks. Exchanges have launched their own networks because the future is in decentralized systems, but we also need centralized exchanges. I think they panicked a little bit unnecessarily.
Yeah, I usually agree that CEX's native tokens have a bright future like BNB, HT, GT, KCS..., but not with blockchain, and blockchains like Heco, OKchain, KCC are the clearest proof.
Perhaps the BNB chain is just a special case since it is backed by Binance. Base could also be the next special case because it is supported by Coinbase - a crypto giant in the United States.
I assume that before any exchange that is backed by another blockchain will decide to develop their own blockchain network, they must have seen a huge success or growth in the current services that they offer. Binance exchange has really become a large exchange in some countries but things could also change in the future and before you know it, another exchange could just emerge and also become very successful.
OKX has grown very quickly over the past year after they announced proof of reserves and conducted very effective marketing, OKX's market share increased from 5.1% to 8.9% in 2023[1]. However, I am not sure that the development of OKX will create success for OKchain. I had never used OKchain, and I cannot predict its potential.
Ah I see, but why did Coinbase choose Layer-2 Ethereum?
Why doesn't Coinbase create its own blockchain to be more confident.
So that's it, Coinbase has millions of users who trade on the market every day, but why did Coinbase create Layer-2 of Ethereum?
Do you have a detailed explanation regarding CEX Coinbase why not create its own blockchain?
If you have such information, please explain it to me. :)
I'm not Coinbase so I don't know what their real purpose is, I will present my subjective opinion:
Ethereum is the ecosystem with the largest liquidity and most users, and Layer-2 on Etherum is the trend thanks to its cheap fees and taking advantage of the Ethereum blockchain security.
Coinbase can target capital (liquidity) and dev/user community on Etehreum, choosing to develop Layer-2 based on OPstack is completely wise.
[1] Market Share of Centralized Crypto Exchanges, by Trading Volume (https://www.coingecko.com/research/publications/centralized-crypto-exchanges-market-share)
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I will present my subjective opinion:
Ethereum is the ecosystem with the largest liquidity and most users, and Layer-2 on Etherum is the trend thanks to its cheap fees and taking advantage of the Ethereum blockchain security.
Coinbase can target capital (liquidity) and dev/user community on Etehreum, choosing to develop Layer-2 based on OPstack is completely wise.
So, maybe Coinbase doesn't want the hassle of creating tokens and as a result Coinbase is following the trend that is currently experiencing FOMO, namely Layer2 Ethereum.
And there is also the large total liquidity of Ethereum which is able to attract interest from Coinbase to be able to attach its coin project to Ethereum, so that it is more easily accepted by the community.
Brian Amstron CEO of Coinbase (https://en.wikipedia.org/wiki/Brian_Armstrong_(businessman)) is very smart because he has chosen Ethereum to support his BASE coin project and surely one day BASE will also This will establish its own blockchain because usually when a project is famous, there will definitely be ones that break away from the Ethereum blockchain, such as TRON and BNB.
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Do you think in the next cycle, will other exchanges continue to introduce their new own blockchains? Can blockchains backed by CEXs compete with independent blockchains that do not rely on CEXs in the market?
Binance's BSC is a special exception as it is backed by the world's largest CEX and has users from Binance. Coinbase will be similar as it is the largest CEX in the US. Other exchanges like HTX and OKX cannot succeed because their blockchain cannot attract users and cash flow, their ecosystem will not be able to develop like BSC or Base.
I have never used Heco, OKchain and KuChain, I have only used Pancake on BSC. If Base develops and has many potential tokens, I will try to invest in some of these Layer-2 tokens or native tokens 8)
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Maybe the high network fee on the ethereum network was what prompted CZ to create a new blockchain, and I must say that him and his team did a hell of a job for launching BSC in 2020, and taking it to where it is today. BSC is not just the top blockchain owned by a CEX but it's also the 3rd ranked blockchain by Total Value Locked (TVL) (https://coinmarketcap.com/chain-ranking/), after ETH and TRX. Hecochain, Okchain, Kuchain are quite unpopular and they've a lot of catching up to do.
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Binance's BSC is a special exception as it is backed by the world's largest CEX and has users from Binance. Coinbase will be similar as it is the largest CEX in the US. Other exchanges like HTX and OKX cannot succeed because their blockchain cannot attract users and cash flow, their ecosystem will not be able to develop like BSC or Base.
I have never used Heco, OKchain and KuChain, I have only used Pancake on BSC. If Base develops and has many potential tokens, I will try to invest in some of these Layer-2 tokens or native tokens 8)
I've never used it so I don't know how to choose or predict. I've only heard a lot about tokens on BSC, but I don't know about other chains. I haven't seen any new token on Heco.
Base has just been released using OPstack technology, it seems to have a bit of a problem and is not outstanding, not enough to compete with Arb or Op because the community on the Arb and Op is much larger.
BNB chain will still be at the top of market capitalization because Bnb token is keeping its price so well. Sol is competing for capitalization position with Bnb, we don't know what the result will be.
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The only case I see that could work is the Coinbase exchange because it became very popular after Binance and also became close to the US government and gets many facilities under the table.
Other than that, I don't see a chance for any new blockchains to emerge that are supported by CEXs versus independent blockchains because many investors prefer to use independent blockchains that are decentralized and maintain privacy away from the control and eyes of governments that now control CEXs almost through Strict regulatory (KYC, AML, anti-terrorism).
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The only case I see that could work is the Coinbase exchange because it became very popular after Binance and also became close to the US government and gets many facilities under the table.
Other than that, I don't see a chance for any new blockchains to emerge that are supported by CEXs versus independent blockchains because many investors prefer to use independent blockchains that are decentralized and maintain privacy away from the control and eyes of governments that now control CEXs almost through Strict regulatory (KYC, AML, anti-terrorism).
Base is one of the largest Layer-2s currently, Coinbase is also a major force: listed on the stock exchange, the largest CEX in the US, with large capital and many relationships in the market, I believe Base will be one of the successful CEX-based blockchains.
Coinbase and Binance have always wanted their blockchain to be decentralized and run by the community, but the BNB chain is still highly centralized, with the majority of nodes considered to be owned by Binance CEX. However, the BNB token price had grown very well in the 2020 cycle, proving that the growth potential of the token price is not too dependent on decentralization.
Binance CEX has been accused of money laundering, but it is not related to the BNB chain. Blockchain is innocent of all user usage, Binance does not manage the BNB chain and will not be responsible for transactions on the BNB chain ^^
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Base is one of the largest Layer-2s currently, Coinbase is also a major force: listed on the stock exchange, the largest CEX in the US, with large capital and many relationships in the market, I believe Base will be one of the successful CEX-based blockchains.
Governments may prefer this type of blockchain, as it is still considered crypto, but it is centralized. Transactions can be frozen, removed, or reversed even if they are inside wallets. It is cheaper and does not require mining tools. The government could force all auditors to be inside the United States. Then the governments will have Complete control of the blockchain.
For the average user, he is looking for low fees and there is a small possibility that his account will be frozen, so it is still a good option.
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Base is one of the largest Layer-2s currently, Coinbase is also a major force: listed on the stock exchange, the largest CEX in the US, with large capital and many relationships in the market, I believe Base will be one of the successful CEX-based blockchains.
Governments may prefer this type of blockchain, as it is still considered crypto, but it is centralized. Transactions can be frozen, removed, or reversed even if they are inside wallets. It is cheaper and does not require mining tools. The government could force all auditors to be inside the United States. Then the governments will have Complete control of the blockchain.
For the average user, he is looking for low fees and there is a small possibility that his account will be frozen, so it is still a good option.
Low costs are the main factor to pay attention to in every transaction whether it is layer 1 or 2, where most people are not investors but just free coin scavengers, for investors costs are not everything because they have bigger profits
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Governments may prefer this type of blockchain, as it is still considered crypto, but it is centralized. Transactions can be frozen, removed, or reversed even if they are inside wallets. It is cheaper and does not require mining tools. The government could force all auditors to be inside the United States. Then the governments will have Complete control of the blockchain.
For the average user, he is looking for low fees and there is a small possibility that his account will be frozen, so it is still a good option.
Base's Validators are also decentralized and not under the management of Coinbase, so I think we do not need to worry about the Base blockchain being manipulated or controlled by the US government.
Low costs and the excitement of the ecosystem will attract users and investors. What interests me about Base is that its development is backed by Coinbase, so we don't need to worry that Base will lack funds to operate and develop.
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It is a good basis for realizing the user's faith in the fact that they will sell and buy coins at the exchange without excessive brainstorming. Very good support and I support it.
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It is a good basis for realizing the user's faith in the fact that they will sell and buy coins at the exchange without excessive brainstorming. Very good support and I support it.
Well, I'm not talking about tokens listed on CEXs, I'm talking about blockchains supported by CEXs such as Binance's BNB chain and Coinbase's Base. Compared to when the topic was created, Coinbase's Base has made great strides after the DenCun upgrade thanks to its extremely low fees and high speed, making it the perfect choice for memecoins and NFTs. The number of users has increased, the trading volume has increased, and we have more ETH being burned to increase the scarcity on the market.
BNB chain also has a Layer-2 solution called opBNB but it is not really as prominent as Base on Ethereum, I look forward to the competition of these 2 Layer-2 blockchains in the bullrun, they will be the reason for the opponent to have to progress and constantly develop to serve the needs of users.
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I am not entirely sure if it will go that far. I agree that everyone who gets their own power tends to do whatever they can, and in this regard I am sure that there will be tries, but blockchain is not something that is general one word, its a whole system and that means every coin has its own, and no cex could own all chains, and most of them are decentralized chains, so even if they want to and spend money on it, they probably won't be able to. Like yeah, BNB is backed by Binance, sure, but can you imagine ETH being backed by Binance? That ain't happening, so its not really a problem for the time being.
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I am not entirely sure if it will go that far. I agree that everyone who gets their own power tends to do whatever they can, and in this regard I am sure that there will be tries, but blockchain is not something that is general one word, its a whole system and that means every coin has its own, and no cex could own all chains, and most of them are decentralized chains, so even if they want to and spend money on it, they probably won't be able to. Like yeah, BNB is backed by Binance, sure, but can you imagine ETH being backed by Binance? That ain't happening, so its not really a problem for the time being.
Binance may be an investment fund that supports multiple blockchains, but the BNB chain is still referred to as a product of the Binance ecosystem, and Binance's legal issues are seen as having a direct impact on the future of the BNB chain. Binance - BNB chain has a special relationship in this market as the BNB token is used by Binance for many purposes such as transaction fees + participation in new projects, in order to promote its value. Conversely, when the BNB token price increases, the number of users coming to the BNB chain ecosystem increases and they will all become potential users of Binance, bringing Binance a lot of revenue... HecoChain & HTX, Base and Coinbase do not have such a clear and close relationship!