Changpeng Zhao is the founder and CEO at Binance. Binance is the largest cryptocurrency exchange in terms of volume traded. Zhao pondered on the significance of decentralization as well as the relationship it has to security and freedom. Zhao said that decentralization has many aspects and is part of a scale. This explains why Bitcoin could be seen in different ways.
Changpeng Zhao from Binance on Decentralization, Its Degrees
There has been much written about the advantages decentralization offers to cryptocurrency projects, and what makes some initiatives stand out from others. Changpeng Zhao (CEO of Binance) pondered the importance decentralization. However, this attribute should not be the primary goal but rather a means to reach multiple goals related to cryptocurrency projects.
Zhao stated in a blog posting that decentralization is not an absolute process and there were many key elements to it. He explained:
All aspects are a gradient scale and not black-and-white. Decentralization, however, is only a tool to reach the end goal. The ultimate goal is security, freedom and easy use.
Zhao said that these elements could cause different projects (even Bitcoin!) to seem centralized depending on which aspect is being looked at.
CEXs Still Important
Zhao, in the same manner, remarked upon the significance that central exchanges (CEXs), still hold. Zhao said that the majority of people still use centralized cryptocurrency exchanges for security, because most people can’t keep their money safe with current tools. He declared:
That’s why CEXs are more popular today. Users can access crypto through centralized exchanges in an incremental manner. They also act as bridges between decentralized and centralized systems.
These statements were made by Zhao after a significant exploit was discovered in which an attacker gained control over 2 million BNB. Validators stopped the Binance Smart Chain Blockchain to fix the hack and Zhao responded accordingly. Due to the rapid coordination of validators to prevent further losses, the action received a lot of criticism.
Zhao, however, declares that he believes in decentralization and that the exchange will continue investing in solutions that enable security to co-exist with freedom in the future.
What do you think about Changpeng Zhao’s vision of decentralization? Leave a comment below.
Image creditShutterstock.com, Pixabay. Wiki Commons. Aleksandr Khmeliov.
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