Blockchain technology, the first successful implementation of the distributed ledger framework and one of the core technologies that support cryptocurrencies like Bitcoin and Ethereum, continues to attract attention from diverse sectors in business, government, technology, and other industries. Binance CEO, Changpeng Zhao, believes the technology will play a prominent role in the future.
Specialized Blockchains will Overthrow the Current Prominent Blockchains
At the moment, the Ethereum blockchain seems to be seated atop the food chain when it comes to dApps and standards. Ethereum’s alpha status, however, does not sit well with deep-pocketed competitors, like Tezos, EOS, and Dfinity. These blockchains believe that they can overthrow Ethereum, as they promise faster and more efficient protocols.
Changpeng Zhao, CEO of Binance, the world’s biggest cryptocurrency exchange, thinks otherwise. In his opinion, none of these contenders stand a chance of long-term success, as they are too slow. This might have been long leveled at Ethereum, but CZ isn’t convinced. He says that any blockchain that is designed for general smart contracts will not be swift enough. He firmly believes that the existing blockchains will surrender the field to more specialized ones.
CZ believes tools like Komodo and Tendermint, which are new, will make it possible to write blockchains for specific purposes. The Binance CEO is of the opinion that the future will consist of numerous bespoke ledgers. His comment might imply that blockchain will evolve in the way of computer chips: customized ASIC chips have come to dominate computing over general purpose ones.
Plenty of Fish in the Cryptocurrency Sea
The crypto billionaire is quite open about other cryptocurrency exchange platforms, one of them being Coinbase. CZ believes that the sea is vast enough for any crypto platform to fish and does not see the need for unhealthy competition. According to him, developed countries can be a bit problematic.
Buttressing his point, he said:
“In developed markets, there’s more money to be made but more regulation and it’s saturated with competition. We don’t want to compete with Coinbase and [Winkelvoss-owned] Gemini. The strategy there requires lots of lawyers and lobbying.”
He added that countries like Malta are a perfect place for operation, as he can relate directly with the head-of-state. This will effectively promote the ideals of a decentralized financial system. Commenting on Binance’s relationship with Coinbase, CZ said:
“We have a very good relationship with Coinbase.”
Cryptocurrency giant, Binance, announced this week that it had acquired TrustWallet. Binance made this move, believing that more people will get involved in decentralized services.
Decentralization is the Technology of the Future
CZ believes that decentralization is the technology of the future, providing security, privacy, and anonymity. There has been an eruption of dApps in the last two years, the most famous being CryptoKitties. However, very few of these dApps have found mainstream use, partly because their user interfaces are difficult to navigate.
CZ agrees with the above but gives some form of assurance for change. He said:
“It’s still the very early stage in dApps. Most are just proof of concept or simple games, [and] this will likely to change before long.”
Binance is taking radical steps to build a decentralized financial system. It plans to achieve this by working with Malta to create a global decentralized community bank. The CEO says that Binance is also building its won blockchain to expedite a decentralized crypto exchange.