Binance CEO Changpeng Zhao Believes Decentralization Is Part of the ‘Gradient Scale’

Changpeng Zhao, founder and CEO of Binance, the largest cryptocurrency exchange by trading volume, weighed in on the importance of decentralization and its relationship to security and freedom . Zhao said that there are several aspects of decentralization and this is part of the gradient scale, explaining the different ways that even Bitcoin can be seen as centralized.

Binance CEO Changpeng Zhao on Decentralization and Its Levels

Much has been said about the benefits that decentralization brings to crypto projects and how it distinguishes some initiatives from others. Changpeng Zhao, CEO of Binance, weighed in on the importance of decentralization and that this characteristic is not a goal but a tool to achieve several goals related to a crypto project. .

In a blog post published on October 9, Zhao explained that decentralization is not absolute and has several key aspects to it. He explained:

Every aspect is a gradient scale, not simply black and white. Also remember that decentralization is a means to an end, not the goal itself. The goal is freedom, security, and ease of use.

According to Zhao, each of these aspects can make different projects (even Bitcoin) appear centralized, depending on what is being considered.

CEX is still important

In a similar way, Zhao commented on the importance that centralized exchanges (CEX) still have. According to Zhao, most people still use centralized exchanges as a way to keep their cryptocurrencies safe, as most people still cannot keep their funds safe with current tools. yes. He declared:

That’s why CEX is more popular these days. Centralized exchanges provide an incremental step for users to access cryptocurrencies and can act as a bridge between centralized and decentralized systems.

Zhao makes these claims based on a massive mining incident in which an unknown attacker was able to take control of 2 million BNB, causing validators to stop the Binance Smart Chain blockchain to patch it. This action has been heavily criticized due to the speed at which the network’s validators coordinate to stop the chain to avoid further losses.

However, Zhao claims to be a believer in decentralization, saying that the exchange will continue to invest in developing solutions that allow security and freedom to go hand in hand in the future.

Read more: Justin Sun confirms mentor role in Huobi, accept to buy it

Comments (No)

Leave a Reply