Buterin and Zhao Agree On Importance of Decentralized Exchanges

Buterin and Zhao Agree on Importance of Decentralized Exchanges

During an interview at Tech Crunch Sessions: Blockchain 2018, Vitalik Buterin, Ethereum’s co-founder emphasized that ‘centralized exchanges should burn in hell as much as possible’, and he strongly advocated for the use of decentralized cryptocurrency exchanges.

His fiery comments come from his annoyance with centralized exchanges and their practice of using their ‘stupid king-like power’ as they have the power and ability to determine which currencies can become big after making projects pay 10-15 million dollar exchange listing fees.

His comments caused a huge stir in the community as usual, including a response from the Binance co-founder, Changpeng Zhao. He said,

There is no absolute decentralization. Projects with core teams still have centralization. Today, Vitalik probably has more king-like powers than anyone else in this industry and has used it, by serving as advisors to projects, therefore helped to decide their fate, at least fate of their ICOs to a large extent.

While Buterin did not directly respond to Zhao, he responded to a French cryptocurrency exchange in French by saying,

It’s much better than a fully centralized exchange, but it doesn’t solve the other problem, as centralized exchanges have a lot of control over the market and can choose which currencies become the most popular etc etc.

In all, I think this is a very good idea and I hope that more cryptocurrency exchanges will use this semi-centralized method.

IDEX is one of the semi centralized exchanges that offers features from both centralized and decentralized exchanges.

While Zhao and Buterin may have been on opposing ends in these comments, the bigger picture shows that both believe that decentralized exchanges should lead the way. In March, Binance announced their plans to launch a decentralized exchange. The announcement said,

Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.

In the near future, it is possible that centralized exchanges move more towards semi centralization and offer services as those given by IDEX and what Blockchain.io plans to do.

Read more about Vitalik Buterin by clicking here.

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Pallavi Janiani

Pallavi Janiani

Content Writer
I am studying Business and psychology at the university of Minnesota. Apart from learning about how the economy and the human mind works, I spend my time dancing with my bollywood fusion team, reading, writing, traveling, usually with a cup of coffee in my hand.