Decentralized Binance Prototype Is Expected Within a Couple of Months
Binance is actively investing in becoming the decentralized exchange while a prototype is estimated within a couple of months, Changpeng Zhao, founder and CEO of the major exchange, said in an interview with CNBC.
He added that he believes that within the next five to ten years, decentralized exchanges will conquer central ones, and the reason for that is “much bigger” than security issues.
“I believe that a decentralized exchange is the future,” he said in the interview. “I don’t know when that future will come yet, so I think we’re at an early stage for that [...] We’re now actively investing our efforts, our time into it. We have a dedicated team working on this. I’m hoping to see a prototype within a couple of months,” Changpeng Zhao, who's also known as CZ, said.
He stressed that decentralized exchanges will give people more freedom, as they don’t have to hold their assets on the exchange, adding, “It doesn’t necessarily mean that it’s safer for you, it just means you have more control.” Although the performance of decentralized exchanges will “always be slower than centralized ones,” he believes they will become fast enough in a couple of years to take over.
This comes shortly after Vitalik Buterin, co-founder of the Ethereum platform, said that he hopes that “centralized exchanges go burn in hell as much as possible,” as he believes there’s no reason some projects need to pay USD 10 to USD 15 million in listing fees to let people trade their tokens on centralized exchanges.
CZ replied to this with a tweet:
Binance, at press time the biggest cryptocurrency exchange with fees by 24-hour trading volume, is among the most prestigious places a coin can be listed on: Changpeng himself, however, says he is no longer involved in deciding which coin to list. He adds that there is no hard metric to be listed, but if you have a good working product that has users, they will list you. They supposedly also listed coins that did not have to pay at all, due to the quality of the product.
Binance expects a net profit of USD 500 million to USD 1 billion in 2018, as reported.
Listen to the whole interview and hear what CZ has to say about the quality of Binance's services (he's not too happy), what is the growth strategy of the company, and why he thinks Binance does not compete with other exchanges.