Cryptocurrencies

Binance CEO speaks out on Binance’s future facing DeFi – Cryptocurrencies

Bitcoin (BTC) will end up being surpassed by better than him: are Changpeng Zhao’s predictions already coming true? CZ had recently described the future of DeFi. He talks today about the complex relationship between Binance and the latter. The exchange cannot afford to be a spectator of the DeFi explosion, but it is also taking risks by joining the race.


A Binance tightrope walker: between DeFi and security

The Binance CEO, Changpeng Zhao, admitted the contradictions that exist in the development strategy of the exchange: Binance strives to take advantage of the benefits DeFi offers, while trying to maintain its place as the market’s leading crypto exchange.

Most exchanges recognize that DeFi could threaten the traditional financial system, like the brokerage firms of Wall Street, but also decentralized platforms.

However, CZ is ready to adapt the model of Binance to remain competitive, while DeFi has just exceeded $ 10 billion in terms of Total Value Locked.

A smart alternative to Ethereum

The last initiative of the exchange within DeFi is the creation of Binance Smart Chain, which took over some of the key elements ofEthereum (ETH).

Binance Smart Chain had to give up certain elements of decentralization but, CZ emphasizes that its goal is not to build a centralized exchange.

Binance must protect the reputation and brand of the exchange, however. Binance Smart Chain is controlled by 21 operators, elected by the holders of BNB, the native token of the exchange.

The goal is not to compete Ethereum but to offer an alternative to users and developers frustrated by the high transaction costs of this one.

Shortly after the launch of Binance Smart Chain, a group of anonymous developers had created BakerySwap, an Automated Market Maker, similar to Uniswap (UNITED). Unfortunately, less than an hour after it went live, the protocol was gone.

Asked about it, CZ indicated that many projects were aborted on Ethereum without anyone coming to complain to Vitalik Buterin.

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The developers are launching the latest Ethereum 2.0 testnet, a final twist before an imminent release of the new version of the network. DeFi experts are, however, pessimistic about the ability of ETH 2.0 to solve the current problems associated with the explosion of DeFi. The key lies in the proliferation of new initiatives like the Binance Smart Chain. The collective will always win over a player who plays it solo, however talented he is.

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