CZ's sole authority over BNB Smart Chain is a problem
Direct from the desk of Dane Williams.
While BNB Smart Chain uses a system of validators, they are nothing more than CZ controlled sock puppets - Thus creating a BIG problem.
When it comes to BNB Smart Chain, CZ gets what CZ wants.
BNB Smart Chain coming to a grinding halt at the press of a button following yesterday’s exploit, shows this to be fact.
But just for a second, consider what CZ having the ability to press a button to halt an entire network really means.
For BNB Smart Chain and the entire goal of permissionless money and freedom of speech.
Implications of CZ’s sole control over BNB Smart Chain
Saying the implications are big BNB Smart Chain, would actually be the understatement of the century.
They’re truly massive.
We now know that BNB Smart Chain validators agreed to - So the reality being CZ himself decided to - implement a software update to block the hacker’s address.
While this is socially acceptable in the case of a hacker...
Doesn't this mean that if CZ is pressured by a government - or heaven forbid extorted by terrorists with a gun to his child’s head… for example - that he can do it to ANYBODY'S address?
Or heck, keep the switch off so the entire network comes to a grinding halt?
The answer is of course YES.
Making the entire BNB ecosystem and that $45 billion market cap of the network’s main token, a house of cards waiting to come crashing down.
It doesn't matter that we trust CZ to 'do the right thing' and not screw us over because he's a great guy.
Which by all accounts, I’m sure he is… lolololol!
(If you understand CZ’s role during the Steem hostile takeover, you’ll hopefully get a chuckle out of that.)
The issue is of course that he has the technical capability to do so.
The entire BNB Smart Chain is not a permissionless system and as such, has one glaring vulnerability in CZ and Binance Inc.
Sure it worked out this time because CZ’s control meant he was able to freeze accounts and trap the money from hAcKeRz.
He chose the option to save the greater good.
Cool.
You can't, however, say that the next time he will do the same.
As we see everyday - highlighted by what's happening in the UK financial system right now - if something can go wrong…
Then something WILL go wrong!
While BNB Smart Chain based DeFi platforms like our very own Cub Finance are paying out ridiculous yields, I am happy to take advantage.
Heck, I’d be stupid not to.
But to have anything close to a valuable amount of money tied up in anything BNB ecosystem related long term is the absolute last thing I want to do.
I encourage you to at least consider the ramifications of CZ’s ability to freeze the entire BNB Smart Chain network on your own investment.
Then on what it could mean for the permissionless movement of money and information.
Sound overly dramatic?
It’s not.
When push comes to shove, all that will matter are decentralised, permissionless parallel running systems.
Of which right now there aren't many.
Seriously, try to name them with confidence
Post merge, you can’t even confidently add a PoS Ethereum to the list.
All roads lead to Hive.
Best of probabilities to you.
PS. I need some help.
While you’re here, can you help me fully understand exactly what happened here?
Please jump into the comments and help me work through these questions.
So we know the exploit was on a cross-chain bridge called BSC Token Hub.
My understanding is that this particular bridge allows you to move between the BNB Beacon Chain (BEP2) and the BNB Chain (BEP20 or BSC).
So my questions:
Did the hacker essentially 'trick' the bridge into printing new BNB tokens on BSC, without actually stumping up an equal amount of capital on the other side?
Or… was this a pool of tokens sitting in an account that someone (I take Binance Inc?) owned?
PPS. Now go and read some of the truly great Hive authors who actually make you think.
Not just the same, re-hashed SEO plays you see by so called crypto journalists in the mainstream media.
To start with, I’d highly recommend also checking edicted’s similar take in the back half of his there's been a disturbance in the force post.
(I didn’t plagiarise, I promise!!)
Honestly, I’m just happy that I’m not the only one that thinks along these lines when it comes to the end game for crypto.
Then if you’re really keen, answer gadrian’s questions around how secure Cosmos bridges may or may not be.
So many good and thought provoking minds floating around the Hive blockchain’s social dApps.
Take advantage of them.
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