Changpeng Zhao Responded to Vitalik’s Remarks that “Centralized Exchanges Should Go to Hell”, Said that the Transformation to Decentralization
Today, Changpeng Zhao responded to V God’s remarks on Twitter, “I hope that the centralized exchange will go to hell as soon as possible.”
He stated:
1. When dealing with centralized exchanges and decentralized exchanges, everyone should be broad-minded and recognize that each other is part of the blockchain ecosystem, rather than an independent project.
2. Regardless of whether it is a centralized exchange or a decentralized exchange, the liquidity, market value, price and influence of all digital currencies may shrink by more than 90%.
3. Decentralization is only a means, not an end. Our goal is to give people more freedom and choice to choose the exchange they want.
4. There is no such thing as complete decentralization. Having a core team means centralization. In today's digital currency industry, V God, as a project consultant, has and has used the power of a king more than anyone else, to help those projects determine their fate, at least their fate during ICO.
5. Decentralization is not necessarily safer and more efficient.
6. I am just an ecological builder, and I don't want anyone and anything to "go to hell". We need to promote the development of the entire ecosystem rather than a certain part.
The implication is that the entire industry will usher in a slower and more centralized development. Everyone should not be completely obsessed with the superficial concept of "decentralization", but should consider safety and efficiency issues. In his opinion, making some decentralized adaptive choices on the basis of centralization will be more meaningful than a completely idealized "decentralization".
But these remarks are obviously different from those in recent interviews with foreign media.
According to cryptonews, Zhao Changpeng said in an interview recently that Binance is committed to becoming a decentralized exchange and investing in this area, and it is expected that a prototype will be released within a few months.
Changpeng Zhao stated that he believes that within five to ten years, decentralized exchanges will defeat centralized exchanges. He emphasized that decentralized exchanges will give people more freedom, and they will not have to put their assets on the exchange. But that doesn't necessarily mean it's safer for you, it just means you have more control. While decentralized exchanges have “always been slower than centralized exchanges,” he believes they will become fast enough in a few years to take over the market. In May this year, Changpeng Zhao also expressed similar views in interviews with the Wall Street Journal and the New York Times.
These inconsistencies make people suspect that this is just a common method used by business founders to output different opinions in the face of different media and audiences。
Compared with Zhao Changpeng's ambiguity, Goddess V's remarks are much more unruly but firmer.The remarks of "I hope centralized exchanges will go to hell as soon as possible" actually come from the TechCrunch blockchain theme salon on July 6, where he criticized centralized exchanges for being too concentrated in power, so "hope they will go to hell as soon as possible." He also mentioned many times that everyone has individual needs, and only a "centralized" or "decentralized" world does not exist. The existing centralized exchanges provide an intermediary for legal currency and cryptocurrency transactions, and the legal currency is absolutely centralized. He firmly believes that as many decentralized measures as possible should be done.
Apart from the war of words of the bosses, we need to understand the difference between the two modes.
The centralized trading process, including fund custody, liquidity supply, matching transactions, settlement and clearing, etc., is all completed by the exchange. In fact, this process has nothing to do with blockchain technology.
In the decentralized trading process, the funds are in the user's own wallet, the liquidity supply is provided by the exchange, the matching transaction is completed by the smart contract, and the settlement and clearing are directly settled on the chain.
However, the existing decentralized exchanges are actually not completely "decentralized" in the true sense. Taking 0x as an example, its order book is not stored on the chain, but is matched and matched off-chain for transactions, and the liquidation information is stored on the chain, otherwise the huge information storage will not make the transaction efficient.
I am Xiao Parker, the author of Odaily. I am exploring the real blockchain. If you are looking for reports, please add WeChat lmm662381. Please note your name, company, and position. For reprint/content cooperation, please email report@odaily.com.
I am Xiao Parker, the author of Odaily. I am exploring the real blockchain. If you are looking for reports, please add WeChat lmm662381. Please note your name, company, and position. For reprint/content cooperation, please email report@odaily.com.
