Binance Exchange Says It Couldn’t “rollback” After DeFi Attacks on Binance smart chain

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Binance Exchange Says It Couldn't
Binance Exchange Says It Couldn't "rollback" After DeFi Attacks on Binance smart chain

The decentralized financial protocol based on Binance Smart Chain, Binance’s Smart Contract Blockchain, has been attacked by more and more hackers. That included an exploit of bEarn Fi earlier this month that caused a loss of $11 million.

Binance smart chain Control Will Further Decentralize it

A Binance representative suggested on Wednesday that DeFi is just like that and that the world’s largest exchange can barely fix these security flaws. Even if the exchange retains a significant amount of control over the Binance smart chain, it will make it more centralized than competing blockchains.

The security algorithm of the BSC blockchain, Proof of Stake (PoSA), is controlled by 21 node operators chosen by holders of Binance Coin (BNB). However, Binance is one of the largest holders of BNB tokens and therefore still has important control rights.

After recently discovering some security flaws, some Twitter users criticized Binance CEO Changpeng “CZ” Zhao, demanding that the exchange be held accountable for the security flaws commonly referred to in the industry as “drug addicts”.

Samy Karim, coordinator for business and ecosystem development at Binance, stated in the CoinDesk consensus for 2021: “BSC is a public permissionless infrastructure so anybody can deploy projects there.” “You have malicious actors there and hacks, and exploits in DeFi are not new and definitely not unique to BSC.”

Karim added, “It is not possible in the way that a lot of people think for there to be some kind of rollback.” 

In less than 9 months, BSC has grown rapidly to become one of the more competitive competitors to the Ethereum blockchain (sometimes collectively referred to as the “Ethereum Killer”).

Christanto asked Karim whether BSC would become more decentralized in the future?

Karim said in response to the above question: “Our approach is really more focused on educating and supporting the developer ecosystem.”

However, Karim said during the meeting that he had seen “considerable interest” from BSC and DeFi agencies and that his team would focus on meeting their needs such as data protection in transactions.

He said institutions “require for transaction privacy, potentially private pools or private lending pools or money markets that have different features than what you see today.” “So it’s not completely permissionless that just anyone can participate.”