The head of Binance spoke about the struggle of CEX against DeFi


Share this :


Entrepreneur Changpeng Zhao (CZ), who holds the position of head of the Binance cryptocurrency exchange, spoke about the confrontation between centralized trading platforms (CEX) and decentralized finance (DeFi). According to him, in about 10 or 20 years, the second DEX exchanges will dominate and become industry leaders.

The entrepreneur expressed the opinion that today most people are still not familiar with cryptocurrencies and do not use them. The adoption of this class of assets covered no more than 1-3% of the entire world population.

People in decentralized finance are the first adopters of cryptography. Basically, they are technical people who know how to back up a private key, encrypt it, and split it for storage in several places. They planned and implemented a way to pass it on to their children when they themselves were not around.

Such tasks are difficult for the average person. For the other 97% of the world population, it is easier to use email and password when they are introduced to cryptocurrencies. If access to the wallet is lost, they can call the support service. Of course, such people will use a centralized exchange like Binance. Therefore, the CEX model will continue to grow.

However, as technology becomes easier to use, people will naturally move to DeFi solutions where they have more control and freedom. CZ estimates that the popularity of CEX will drop to 50% and then DeFi will start to overtake this industry. The businessman noted that Binance is investing heavily in future development and is actively investing in DeFi protocols.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!