In a strong promotion for the use of decentralized cryptocurrency exchanges, Vitalik Buterin, Ethereum Founder, expressed “centralized exchanges burn in hell as much as possible.”
Vitalik’s strong statement comes from his anger regarding centralized exchanges applying “stupid king-like power” as they have the strength to determine which cryptocurrencies “become big” after making project pay overpriced “$10 to $15 billon dollar listing fees.”
Buterin’s statement raised tension in the crypto community stirring a response from Binance Founder, Changpeng ‘CZ’ Zhao on Twitter.
Zhou responded by mentioning numerous errors in Buterin’s comments by noting that:
“There is no absolute decentralization. Projects with core teams still have centralization. Today, Vitalik probably has more king-like powers than anyone else in this industry, and has used it, by serving as advisors to projects, therefore helped to decide their fate, at least fate of their ICOs to a large extent.”
Zhou went on to point out that “Decentralization” is not safer by default” and this was obviously seen by the recent hack of decentralize exchange Bancor with the less of $12m worth of Ether including EtherDelta also succumbing to a hack in 2017.
CZ responded on the same day but Buterin did not respond publicly but instead chose to respond to a cheeky Tweet from a new French cryptocurrency exchange Blockchain.io that asked whether their “decentralized settlement feature” would drive them to despair.
Surprisingly, Buterin responded in French saying:
“It’s much better than a fully centralized exchange, but it doesn’t solve the other problem, as centralized exchanges have a lot of control over the market and can choose which currencies become the most popular etc etc.
In all, I think this is a very good idea and I hope that more cryptocurrency exchanges will use this semi-centralized method.”
IDEX, perhaps one of the most popular semi-centralized crypto exchanges is presently ranked 91 with regards to total trading volume for all crypto exchanges with a day period.
In addition to IDEX, there are few decentralized exchanges ranking within the top 100 total trading volume for crypto exchanges with the centralized exchanges leading the chart.
It is clear that decentralized exchanges have a long way to go to start having larger traction and adoption, yet, it all boils down to the fact that both Buterin and CZ agree that decentralized exchange will be the best alternative in future.
Earlier in March, Binance revealed their plans to launch decentralized exchanges in addition to a public blockchain.
“Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.” According to Binance.
It is quite likely that we will soon see centralized exchanges moving towards hybrid solutions similar to what IDEX provides and what Blockchain.io intends to do.