The crypto industry needs more decentralized exchanges, according to Binance CEO Changpeng Zhao
The CEO of the world’s largest crypto exchange platform by trading volume asserts that the crypto industry requires more decentralized exchanges.
In a recent thread, Binance CEO Changpeng Zhao claims that decentralized crypto exchanging platforms are precisely what the industry requires, despite the fact that DEXes can be defective and he operates a vast centralized crypto exchange (CEX).
“We need more DEXs. PancakeSwap has the majority of users. The majority of Uniswap’s TVL [total value locked] is locked. This remains “too centralized”… (I know, imagine that coming from me.) Need more alternatives”.
Recently, the latest version of the prominent decentralized exchange (DEX) PancakeSwap launched on both BNB Chain and Ethereum (ETH).
Zhao then responds to the suggestion that Binance should develop a hybrid cryptocurrency exchange platform that combines the self-custody of DEXs with the liquidity and performance of CEXs.
According to Zhao, such a feat would be “easier said than done” given the current throughput limitations of blockchain technology.
“Easier to say than to do. Also must guarantee the security of funds. Real-time settlements ensure that the counterparty of the transaction is paid and that no one can defraud the system. Blockchain throughput is currently insufficient.”
In response to a user’s claim that established decentralized exchanges, such as PancakeSwap, appear safer than newer ones, Zhao observes that DEXs may be vulnerable to breaches and exploits.