Binance Zhao Changpeng’s Reply to “Vitalik’s Burn in Hell” on Centrlized Exchanges
Early this month, Vitalik Buterin, creator of Ethereum, stated that he wants to make Ethereum to be more decentralized by design and he definitely hopes centralized exchanges ‘go burn in hell’ as much as possible.
Zhao Changpeng (CZ), CEO of the world’s largest crypto exchange Binance, demonstrated his point of view on Vitalik’s concepts.
Zhao emphasized that, both the decentralized and fiat (or centralized) exchanges are parts of the crypto eco-system. He said the centralized exchanges contribute a lot to the crypto industry: they bring liquidity to the market and boost the developmental rate of this industry ‘by more than 10 times’.
He also argues that: “Just because someone else is doing the lowly grunt work, doesn’t make them dirty.”
Zhao listed 3 arguments on Twitter:
- Decentralization is a means, not an end. The goal is to increase freedom and choice and let people choose what they want. More people seems to choose centralized exchanges over decentralized ones.
- There is no absolute decentralization. Centralization is inevitable for projects with core teams. Today, Vitalik probably has more king-like powers than anyone else in the industry, that may decide projects fade, at least fate of their ICOs to a large extent.
- “Decentralization” is not safer by default. That’s why we have ETC vs ETH today.
- Effectiveness and adoptability is a consideration.
In addition, Zhao further added that, he is all for the decentralization but just felt it’s not nice to say “burn in hell” on the centralized exchanges. He also expressed understanding of Vitalik’s personal preference “which is fine”.
Actually, Binance is actively investing in becoming the decentralized exchange. In an interview with CNBC, Zhao have disclosed that a decentralized prototype is estimated within a couple of months and he believes that within the next five to ten years, decentralized exchanges will “conquer central ones”.