Binance CEO on why the future of blockchain is decentralization

03 Aug, 2018
by Arthur Sillers
News
Binance CEO on why the future of blockchain is decentralization

Binance is the world's largest crypto company. CEO Changpeng Zhao gave his vision about the future of blockchain in an interview with Fortune, insisting that crypto will become ever more decentralized.

Changpeng Zhao, who goes by CZ, couched his statements by noting that historically, most blockchain predictions turn out to be false, but gave, among other predictions, his thought that the future crypto ecosystem will look very different as specialized ledgers take the place of large centralized and expansive blockchains like Ethereum.

Many investors have already decided to bet against Ethereum because its limited transaction speed could make it incapable of scaling in the way that it needs to.

As a result, crypto start-ups have been developing technology designed to replace Ethereum by offering the same functionality but more efficiently. EOS, DFINITY, and Tezos have already been described as 'Ethereum killers,' and the competition to make Ethereum obsolete is heated.

CZ predicts, that in actuality, many specialized blockchains will replace coins like Ethereum, with 'bespoke ledgers' designed for increasingly particularized uses which can be more efficient than a blockchain designed for smart contracts could ever be.

CZ, in the interview also predicted an explosion of decentralized applications (dApps) and mentioned how exciting it is to be working in developing countries where he can work directly with heads of state to create decentralized financial institutions. Overall, CZ seems to think the future of crypto is decentralized, harkening back to the ideals that were abound in the beginning of Bitcoin.

CZ's remarks are at odds with statements made by Ethereum founder Vitalek Buterin, who mantained that while he supports the goals of decentralization, he is pessimistic about its future. He mentions that decentralized solutions which try to outdo Ethereum consistently fail, and that centralized exchanges are in fact necessary.

Let us know in the comments which vision of the future of the blockchain you think will be realized.

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