Vitalik Buterin, Binance CEO Zhao Agree Decentralized Exchanges Ought to Lead The Way
In the course of an interview at Tech Crunch Sessions: Blockchain 2018, Ethereum Founder, Vitalik Buterin hoped &ldquocentralized exchanges burn in hell as much as achievable&rdquo as he strongly advocated for the use of decentralized cryptocurrency exchanges.
Vitalik&rsquos fiery comments stemmed from his annoyance towards centralized exchanges wielding &ldquostupid king-like energy&rdquo as they have the energy to dictate which cryptocurrencies &ldquobecome large&rdquo after creating projects spend extortionate &ldquo$ten to $15 million dollar [exchange] listing charges.&rdquo
Buterin&rsquos comments triggered quite a stir inside the crypto community invoking a response from Binance Founder, Changpeng &lsquoCZ&rsquo Zhao on Twitter.
Zhou fired back by highlighting a number of flaws in Buterin&rsquos arguments by stating that:
&ldquoThere is no absolute decentralization. Projects with core teams nonetheless have centralization. Right now, Vitalik almost certainly has more king-like powers than any individual else in this industry, and has utilised it, by serving as advisors to projects, therefore helped to make a decision their fate, at least fate of their ICOs to a big extent.&rdquo
Zhou further remarked that &ldquoDecentralization&rdquo is not safer by default&rdquo and this was clearly evidenced by the recent hack of decentralized exchange Bancor with the much less of $12m worth of Ether as effectively as EtherDelta also falling victim to a phishing attack late last year.
On the same day, CZ shared his response, Buterin chose not to reply publicly alternatively opting to respond to a cheeky Tweet from a new French cryptocurrency exchange Blockchain.io that asked whether or not their &ldquodecentralized settlement feature&rdquo would send them to purgatory.
Buterin surprisingly &mdash or possibly not so surprisingly &mdash responded in French saying:
&ldquoIt&rsquos significantly better than a fully centralized exchange, but it doesn&rsquot solve the other problem, as centralized exchanges have a lot of control more than the marketplace and can pick which currencies become the most popular and so on etc.
In all, I feel this is a extremely excellent thought and I hope that more cryptocurrency exchanges will use this semi-centralized strategy.&rdquo
IDEX, arguably 1 of the most popular semi-centralized crypto exchanges as they offer features from each centralized and decentralized exchanges is at present ranked #91 in terms of total trading volume for all crypto exchangesin a 24 hour time frame.
Aside from IDEX, there are only a handful of decentralized exchanges ranking inside the leading 100 overall trading volume for crypto exchanges with the majority of the chart being dominated by centralized exchanges.
There is clearly a lengthy way to go till decentralized exchanges start to gain higher traction and adoption even so, at the finish of the day, it does look each Buterin and CZ agree that decentralized exchanges will be the ideal option moving forward.
In March, Binance announced their intentions to launch a decentralized exchange along with a public blockchain:
&ldquoCentralized and Decentralized exchanges will co-exist in the close to future, complementing each other, even though also obtaining interdependence.&rdquo &mdash Binance
In the near future, it&rsquos possible that we may see centralized exchanges shift a lot more and more towards offering hybrid options comparable to what IDEX provides and what Blockchain.io proposes to do.
The gradual shift will likely be needed for the wider community to witness higher levels of decentralization in crypto exchanges resulting in much less actors who may possibly wield &ldquostupid king-like powers&rdquo.
About the Author: Michael Draper is a retired policeman turned cryptocurrency advocate, investor, and writer on a diverse array of subjects from psychology, to tiny business and innovative blockchain technologies.
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Published at Wed, 08 Aug 2018 10:43:13 +0000