Changpeng Zhao, founder and CEO of Binance, the largest cryptocurrency exchange by trading volume, discussed the importance of decentralization and how it relates to security and freedom. Zhao said there are several aspects of decentralization that are part of the gradient scale, and described the different ways in which even Bitcoin can be viewed as centralized.
Changpeng Zhao, CEO of Binance, on decentralization and its degree
Much has been said about the benefits that decentralization brings to cryptocurrency projects and how it differentiates one initiative from another, and Binance CEO Changpeng Zhao explained the importance of decentralization and how this characteristic is not an objective but a pondering on how it should be a tool to achieve several objectives related to the project.
Every aspect is a gradient scale and not simply black and white. We must also remember that decentralization is a means to a goal, not the goal itself. The goal is freedom, security, and ease of use.
According to Zhao, each of these aspects may make different projects (even Bitcoin) seem centralized, depending on what is being considered.
CEX is still important
Likewise, Zhao noted that centralized exchanges (CEX) are still important; according to Zhao, most people still cannot secure their funds with the tools currently available. cannot keep their funds safe with the tools currently available, so they are still using centralized exchanges as a way to keep their cryptocurrencies safe, he He declares.
That is why CEXs are more popular today. Centralized exchanges can act as a bridge between centralized and decentralized systems, providing a step-by-step process for users to access crypto.
Zhao makes these statements after a massive exploit that allowed an unknown attacker to take control of 2 millionBNB. To patch this hack, the validator shut down the Binance Smartchain blockchain. This action was heavily criticized because of the speed at which the network validators coordinated to shut down the chain to avoid further losses.
However, Zhao declared himself a believer in decentralization, saying that the exchange will continue to invest in developing solutions that combine security and freedom in the future.
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