Reading Time
~ 3 minutes
Spread the Word

CEO of Binance has contradicted the founder of the phenomenon called Ethereum, after claiming last week that the centralized exchanges should go “burn in hell“.

During an interview with TechCrunch that took place last week, Vitalik Buterin mentioned about centralized cryptocurrency exchanged that he “definitely hope centralized exchanges go burn in hell as much as possible.

The statement made by Ethereum founder has spread rapidly on the Internet, creating a wave of disputes between members of the crypto community. CEO of the world’s second largest crypto exchange according to his 24-hour traded volume Binance, Changpeng Zhao has decided to comment on what Buterin said.

Zhao marked the significance of centralized exchanges on the whole. He explained that fiat currencies have greatly influenced the development of decentralized platforms. Binance CEO also pointed out that if there were not fiat assets and exchanges that operate with them, the decentralized industry would not have been at today’s level, while cryptocurrencies would have had a very low liquidity.

Just because someone else is doing the lowly grunt work, doesn’t make them dirty,” Zhao noted.

Even though Buterin wants all the cryptocurrency trading platform to “burn in hell,” he admitted that decentralized exchanges will be the ones behind the technological revolution. As Buterin claimed, centralized platforms are still usable because they serve as intermediaries between crypto and fiat.

Decentralization doesn’t exist

According to Changpeng Zhao, decentralization is just a notion and not a reality in itself as it does not really exist. He considers if a project is still conducted by a core team, we can still talk about centralization. He even replied to Vitalik Buterin, saying that:

Today, Vitalik probably has more king-like powers than anyone else in the industry, and has used it, by serving as advisors for projects, therefore, helped to decide their fate, at least fate of their ICOs to a large extent.”

To bring arguments against Buterin’s statement, Zhao explained that “decentralization is not safer by default“. He exemplified the Ethereum Classic and Ethereum DAO networks when these suffered a security breach, generating a hard fork.

However, Zhao has pointed out that he’s “all for blockchain/decentralization/freedom.” This can be noticed by keeping an evidence of Binance’s ongoing work on its own decentralized project known as Binance Chain.

Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence. We stand here today because we believe that Blockchain technology will change the world.”

Read more articles related to this subject:
Notice: The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.