I read a lot about SmartBCH and my lack of developer skills are what is still keeping me from totally understanding how it works, but I have seen action and this is what matters most to an investor.
DeFi is a new concept having its roots in Ethereum developments during 2018-2019, it required a huge push by Vitalik and other Ethereum popular community members in the beginning of 2020.
It was difficult to know if it was going to succeed, and perhaps it was the bull market that was initiated in mid-2020 that also contributed to the unpresedented rise.
SmartBCH brings smart contracts to Bitcoin Cash and everything else that is already powered up completely on Ethereum.
It also brings low fees, something that Binance Smart Chain is based on, although BSC is not decentralized.
Because I am not the right person to inform about code or parameters, I take advice from devs that explain every minor detail. The best source of information I have had so far is the SmartBCH telegram, although I admit that the basics are easy to understand but some technicals are something that I don't dare to ask and annoy them.
So, for me, SmartBCH today presents an opportunity, for one reason: DeFi. I have not seen any NFT created yet but since SmartBCH is compatible with EVM then there should be protocols for NFTs too.
Let's stay with just DeFi, this is only a massive movement from SmartBCH. Almost all the top projects in coinmarketcap top-100 are new DeFi that just appeared in the last one or two years.
I am not against the one project that started offering DeFi in SmartBCH, BenSwap, but as with other similar DeFi where nobody knows anyone, it seems that there is risk we shouldn't overlook. I would love the community devs to create their DeFi. I know we do not need trust, but we can't be sure of anything, with everything that has happened so far.
Vulnerabilities in code are included in this and it happens that even top projects from Ethereum or BSC DeFi keep getting exploited, although this is mostly from flash loans. The BCH community should discuss terms with some Defi that could replicate their websites and create a SmartBCH version. It will help significantly.
Bitcoin Cash is beginning to face the new environment not just with sidechains like SmartBCH and SLP, but also with constant discussion for blockchain changes (CHIPS). We observe a dynamic development that looks forward to create a more efficient blockchain and doesn't just stick to an outdated code.
And on the opposite side is taproot. A change that will bring no key changes to Bitcoin (BTC), but it will create smart-contract capabilities and as suggested by analysts will also open DeFi opportunities.
SmartBCH was an important move since with a side-chain it is easier to develop with a bottom-up approach and not having to deal with the blockchain consensus and lengthy debates. It also helps purely the Bitcoin Cash system by taking the best features of Ethereum and BSC and combining them.
BSC requires BNB and SmartBCH requires BCH. There is no other cryptocurrency that will take part of the market and essentially compete with BCH.
BSC burns BCH. Ethereum with the last upgrade also burns ETH, at a high rate though, but it has contributed to the price stability of the asset. Ethereum though has become a rollercoster of neverending changes that will possibly have to meet with many difficulties in later development.
SmartBCH and not the Bitcoin Cash blockchain makes BCH deflationary. Not exactly, I haven't run the numbers but there will be BCH completely removed from the total supply, locked in SmartBCH contracts that are burn addresses. This as we know reduces supply and increases the price with demand being stable.
With just these two features SmartBCH has an important position as a DeFi facilitator and now we are still at a position to exploit it before the swarm starts coming.
Good one, but how can I go about it