Several articles have discussed the value of decentralization and how it sets some cryptocurrency projects apart from others. Changpeng Zhao, CEO of Binance, discussed the importance of decentralization and how it should be a “way to achieve a goal, not the goal itself” in any cryptocurrency project.
In a blog post published on October 9, Zhao outlined the limitations of decentralization and its many facets. He went on to explain:
“Every aspect is a gradient scale, not simply black-and-white. It is also important to remember that decentralization is a means to the goal, not the goal itself. The goal is freedom, security, and ease of use.”
According to Zhao, depending on the circumstances, each of these features could make projects like Bitcoin appear to be controlled by a few people.
Zhao also highlighted the relevance of centralized exchanges (CEXs). According to Zhao, most people still rely on centralized exchanges to store their cryptocurrency because most people are still unable to keep their funds secure using the tools available today. According to him,
“That’s why CEXs are more popular today. Centralized exchanges provide an incremental step for users to access crypto and can act as a bridge between centralized and decentralized systems.”
Following a massive exploit in which an unknown attacker stole 2 million BNB, validators halted the Binance Smart Chain blockchain in order to patch the hack, prompting Zhao’s remarks.
Nonetheless, Zhao says he believes in decentralization and that the exchange will continue to invest in the future development of solutions that make security and freedom work together.
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