CZ, Co-Founder and CEO of the world’s biggest centralised crypto exchange (CEX) by trading volume, has offered his opinions on decentralised finance (DeFi) and decentralised exchanges (DEXes).
Speaking in an interview with the two co-hosts of the Bankless podcast, Binance chairman Changpeng “CZ” Zhao projected that DeFi and decentralised exchanges (DEXes) will be considerably better than their centralised counterparts within the next decade.
As published by The Daily Hodl, he stated, I believe in five or 10 years, decentralised exchanges will be greater than controlled exchanges… I would say maximum, in 10 years, DEXes [and] DeFi are going to be greater than CeFi.
While CZ conceded it would take a long time for centralised exchanges to “go to zero,” he projected decentralised platforms would only need another 5 to 10 years to dominate the market. Despite being positive about DeFi, the Binance CEO still thinks centralised exchanges will play a role for “many decades to come.”
CZ noted that users were both acquainted and comfortable with centralised exchanges and that many clients would continue to prefer to utilise an email and password, compared to the option of a decentralised network. He emphasised his parents’ generation as a group who would be especially averse to the concept of utilising an encrypted USB stick for their private key login.
However, CZ projected that decentralised technology and its user interface will continue to advance to the point of being “much more usable.” He stated that in some respects decentralised choices were “actually simpler to use” owing to the absence of know-your-customer (KYC) protocols that are typically onerous for exchanges.
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