Introduction
Blockchain technology has brought about disruptive changes to the global financial system. Among the numerous cryptocurrencies, Bitcoin (BTC), Ethereum (ETH), and Binance Smart Chain (BSC) have become the most influential due to their technological advantages and market acceptance. This article will delve into the market status, development cycles, and value brought by these three major cryptocurrencies, explore the stagnation issues they face, and discuss their future transformation paths. Lastly, it will analyze how Broken Bound solves these issues and breaks down liquidity barriers among all cryptocurrencies.
The Blockchain Market Environment
As of 2024, the total market value of the global blockchain market has exceeded $1.5 trillion, primarily supported by Bitcoin, Ethereum, and Binance Smart Chain. As the cryptocurrency with the highest market value, Bitcoin accounts for over 40% of the entire market, while Ethereum, with its smart contract platform, holds about 20% of the market share. Although relatively new, Binance Smart Chain also occupies over 10% of the market. Additionally, other cryptocurrencies, decentralized finance (DeFi) projects and emerging fields such as non-fungible tokens (NFTs) are driving the continuous expansion of the blockchain market.
According to CoinMarketCap’s data, Bitcoin’s market value has exceeded $600 billion, Ethereum’s is close to $300 billion, and Binance Smart Chain’s has reached $100 billion. These figures indicate that the core value of the blockchain market is still concentrated on these three significant cryptocurrencies. However, despite the continuous rise in total market value, the development of these three significant cryptocurrencies faces many bottlenecks and challenges.
What Supports the Underlying Value of the Current Blockchain Market?
Cryptocurrency Trading: Cryptocurrency trading is the core activity of the blockchain market, with daily trading volumes reaching billions of dollars. Bitcoin and Ethereum have the most significant trading volumes, accounting for most of the market share.
Decentralized Finance (DeFi): DeFi has been one of the fastest-growing areas in the blockchain market in recent years, achieving decentralized lending, trading, and asset management through smart contracts. As of 2024, the total value locked (TVL) in the DeFi market has exceeded $100 billion.
Non-Fungible Tokens (NFTs): The application of NFTs in fields such as art, gaming, and virtual real estate has made it a new growth point in the blockchain market. In 2023, the transaction volume of the NFT market exceeded $25 billion.
Enterprise Blockchain Applications: More and more enterprises are adopting blockchain technology to improve supply chain management, data transparency, and security. These enterprise applications are driving further adoption and value growth of blockchain technology.
In the future, as blockchain technology matures and expands its application scenarios, the total market value is expected to continue growing. However, the development of Bitcoin, Ethereum, and Binance Smart Chain has entered a stagnation period and faces many challenges.
Why Have BTC, ETH, and BSC Entered a Stagnation Period?
When the concept of “blockchain” was proposed by BTC’s founder, Satoshi Nakamoto, in 2008, it underwent 16 years of continuous rise, and the current overall blockchain market has become a vast financial system with a “tripartite” structure. However, this development momentum has shown signs of slowing down in recent years. Next, we will analyze the design logic and stagnation issues of the three major cryptocurrencies: BTC, ETH, and BSC.
Bitcoin (BTC):
As the first decentralized cryptocurrency, Bitcoin has undergone significant development cycles since its launch in 2009. In the early years, Bitcoin was primarily used for experimental transactions and had low market acceptance. However, with the popularization of blockchain technology and the soaring price of Bitcoin, it gradually became a store of value and an investment tool. However, Bitcoin’s development is mainly constrained by its transaction speed and fee issues.
Data shows that the Bitcoin network can only process about seven transactions per second, and during periods of network congestion, the average transaction fee can reach as high as $62.8. As the number of users increases, the entire network’s transaction confirmation time and fees continue to rise.
In addition, Bitcoin’s proof-of-work (PoW) mechanism leads to massive energy consumption, and environmental issues are increasingly concerning. According to research by the University of Cambridge, Bitcoin mining consumes more electricity annually than some small countries like Argentina.
Ethereum (ETH):
Launched in 2015, Ethereum’s uniqueness lies in its support for smart contracts and decentralized applications (DApps).
Ethereum’s market performance has always been stable, but it also faces scalability issues. Although Ethereum 2.0 plans to improve network performance by transitioning to proof-of-stake (PoS) and sharding technology, the full transition requires time and significant resources.
During the transition period, the Ethereum network is still prone to transaction congestion, which can affect user experience and the sustainable development of DApps. For example, Ethereum’s transaction fees can exceed $20 during peak periods.
Binance Smart Chain (BSC):
Launched by Binance Exchange in 2020, Binance Smart Chain (BSC) aims to provide a high-performance, low-fee smart contract platform. BSC’s design goal is to be compatible with the Ethereum Virtual Machine (EVM), enabling it to run DApps on Ethereum. BSC is known for its high throughput and low fees, processing over 100 transactions per second and having an average transaction fee of less than $1.
However, due to its highly centralized design (21 validator nodes controlled by Binance), BSC’s decentralization and security have been questioned. The centralized validator node structure makes it susceptible to single points of failure and malicious attacks, reducing the network’s reliability and trustworthiness.
Future Development Paths and Channels for Cryptocurrencies
Mainstream cryptocurrency networks have different, complex, and multifaceted shortcomings, such as scalability, interoperability, centralization, security, and interconnectivity. Many blockchain practitioners and researchers have conducted in-depth exploration and analysis to address these issues. The commonly recognized views can be summarized as follows:
Improving Scalability
Improving scalability is a common challenge faced by all blockchain platforms. Transaction speed and fees can be significantly improved by introducing Layer 2 solutions (such as Lightning Network and state channels) and off-chain transaction processing. Bitcoin’s Lightning Network has already partially addressed scalability by enabling fast, low-fee payments through off-chain transactions. However, this technology is still developing and has yet to be widely adopted.
Ethereum plans to adopt sharding technology and PoS consensus mechanism through the Ethereum 2.0 upgrade. Sharding can distribute network load across multiple shards, thereby increasing overall throughput. Once Ethereum 2.0 is fully implemented, its transaction processing capacity is expected to be significantly enhanced, but this process may take several years.
- Enhancing Interoperability
Enhancing interoperability between different blockchains will facilitate the free flow of assets and information across different chains, enhancing the synergy of the entire blockchain ecosystem. Cross-chain technologies and protocols (such as Polkadot and Cosmos) provide the infrastructure for achieving blockchain interoperability. For example, Polkadot enables interoperability between blockchains through its relay chain and parachain architecture, allowing assets and data to flow freely across different chains. Cosmos achieves cross-chain communication and asset transfer through its Tendermint consensus and IBC protocol.
- Strengthening Decentralization and Security
For platforms with a high degree of centralization like BSC, strengthening decentralization is an important direction for future development. By introducing more independent validator nodes and adopting more decentralized consensus mechanisms, the degree of decentralization and security of the network can be enhanced. BSC can learn from Ethereum’s PoS consensus mechanism and improve the network’s security and resistance to attacks through decentralized staking nodes.
Solutions Provided by Broken Bound and BVP Cross-Chain Technology
Broken Bound’s Boundless Value Protocol (BVP) cross-chain technology offers innovative solutions to the development issues faced by BTC, ETH, and BSC. It aims to achieve seamless interoperability between different blockchains, enhancing asset liquidity and utilization efficiency.
BVP achieves seamless interoperability between blockchains through cross-chain smart contracts and relay nodes. This addresses scalability issues on a single chain and promotes the collaborative development of different blockchains. BVP’s design goal is to provide an efficient, secure, decentralized cross-chain solution, allowing users to transfer assets and data between blockchains freely.
Moreover, by optimizing cross-chain transaction processes and introducing efficient consensus mechanisms, BVP can significantly enhance transaction speed and reduce transaction fees. It adopts a hybrid consensus model that combines the advantages of PoS and PoW, ensuring network security while improving transaction processing efficiency. Additionally, BVP introduces off-chain transaction technology, further enhancing transaction speed and reducing fees through state channels and off-chain protocols.
Most importantly, BVP supports reorganizing and appreciating multi-chain assets through Broken Bound’s unique USDB stablecoin and BEBE platform governance token. BVP technology can use smart contracts to automate the management and optimization of asset allocations across different chains, converting them into computing power that continuously generates USDB stablecoin and BEBE platform tokens, thereby enhancing asset utilization efficiency and appreciation potential.
Furthermore, BVP technology can achieve value appreciation for most crypto assets while innovatively bridging the integration barrier between MEMECoin and financial derivatives. Specifically, Broken Bound itself will act as a market maker for MEMECoin, combining various MEMECoin into capital combinations that can serve as computing power, liquidity roles, financial derivative value targets, financial participation roles, etc., thereby reactivating the overall value of the MEMECoin market. This has significant implications for addressing Bitcoin’s value storage issue and Ethereum’s DApps expansion problem.
From the above points, we can see that BTC, ETH, and BSC, as the three major mainstream cryptocurrencies, have played crucial roles in the development of blockchain technology. However, they have encountered various degrees of bottlenecks during their development. These issues can potentially be resolved by enhancing scalability, improving interoperability, and strengthening decentralization. Broken Bound’s BVP cross-chain technology offers an innovative solution by achieving smooth interoperability between blockchains, enhancing transaction efficiency, and supporting multi-chain asset reorganization and appreciation. This paves a new path for the development of blockchain technology. In the future, as BVP technology continues to develop and be applied, the blockchain market is expected to witness a new round of growth and prosperity.
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