Vitalik Buterin, Binance CEO Zhao bat for decentralized exchanges 20655
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Jessica Kuruthukulangara
Aug 9, 2018 at 2:30 AM

Vitalik Buterin, co-founder of Ethereum, and Binance CEO Changpeng Zhao agree on the fact that decentralized exchanges are the way to go.

Though Zhao has highlighted the fact that centralized exchanges are important to the growth of the industry, he has stated that he is "all for blockchain/decentralization/freedom."

Buterin's stance on centralized exchanges

Last month, at a TechCrunch event, Vitalik Buterin made some pretty heated statements regarding centralized exchanges, where he said he hoped that they ”… go burn in hell as much as possible.”

He believes that centralized exchanges exist because they are working as an interface between the fiat world and cryptocurrencies, and “the fiat world only has centralized gateways.”

He is also against the practice of some projects shelling out $10 to $15 million in listing fees in order to allow individuals to trade their tokens on centralized exchanges.

See also: Vitalik Buterin’s appeal to remove Twitter scambots in vain? Researchers unearth 15k crypto-related bots

In a reply to a sarcastic tweet by French crypto exchange Blockchain.io, Vitalik Buterin lauded semi-centralized exchanges as a good option. But he noted, "It's much better than a fully centralized purse, but it doesn't solve the other problem, as centralized purses have a lot of secure control over the market and can choose which currencies become the most popular etc etc."

Zhao's rebuttal

Though Zhao supports decentralized exchanges, he believes cryptos would have had far less liquidity and influence if it were not for centralized exchanges.

In response to Buterin's harsh statements, he had said that the industry would have probably been over 10 times smaller without fiat exchanges. He pointed out that people were increasingly choosing centralized exchanges over decentralized ones for now.

He also cautioned that decentralization is not safer by default. It is important to note that many projects in the space are not completely decentralized.

But he still supports decentralization, as is evidenced by the fact that Binance will soon launch its own decentralized exchange – Binance Chain.

See also: Ethereum blockchain will be dethroned by newer ones very soon: Binance CEO

“Centralized and decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence,” Binance had said earlier in a statement.

Zhao had previously said that Binance Chain would require much more processing power than Binance. The new exchange will also be slower and will charge higher fees.

For now, both Vitalik Buterin and Zhao believe decentralized exchanges are a better option. But will the use of completely decentralized exchanges become more widespread soon?  This remains to be seen.

But many prominent individuals are advocating for complete decentralization. So wider adoption of such platforms could be in the offing.

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