JAKARTA - Binance CEO Changpeng Zhao or who is familiarly called CZ, revealed that blockchain throughput is not sufficient to turn the Binance trading exchange into a hybrid exchange.
Additional information, blockchain throughput refers to the number of transactions blockchain networks can process at a certain time. In other words, blockchain throughput is the ability of blockchain networks to process transactions quickly and efficiently.
This was conveyed by CZ in responding to requests from community members who wanted Binance to become a hybrid exchange (hybrid exchange) to act as a centralized crypto trading platform (CEX) and decentralized crypto trading (DEX) at once.
In the Binance case, Changpeng CEO CZ Zhao said that the current blockchain throughput is not enough to make its platform a centralized and decentralized exchange (hybrid exchange). In this case, it refers to the ability of blockchain networks to process transactions in real-time, ensure the security of funds, and protect the system from fraud.
According to CZ, this is easier to say than to do because the exchange must ensure the security of funds and other things. CZ added that currently blockchain throughput is not sufficient to solve the problem.
Meanwhile, CZ said that the crypto industry needs more decentralized crypto exchanges (DEX). According to him, this industry needs other options besides the main existing DEX. Launching CryptoSlate, CZ emphasizes that PancakeSwap (CAKE) v3 is already available on BNB Chain and Ethereum (ETH).
Although PancakeSwap has the most users, Uniswap (UNI) dominates the space regarding the total value of assets locked (TVL) on protocol. According to CZ, this makes the space "too centralized". However, CZ also warned that DEX could be hacked and their code could be exploited.
The increase in regulatory scrutiny on centralized crypto exchanges (CEX) has caused DEX trading volume to increase since early 2023. According to DeFiLlama data, DEX trading volume rose nearly 100 percent from the start of the year to reach 133.32 billion US dollars (Rp1.9 quadrillion) by the end of March.
The increasing trading volume of DEX has made Uniswap beat US-based crypto trading exchange Coinbase. Uniswap recorded 71.6 billion US dollars (approximately IDR 1 quadrillion) in trading volume during March, 45 percent higher than 49.4 billion US dollars (IDR 738 trillion) recorded on Coinbase.
Meanwhile, DEX's trading volume decreased by around US$3 billion (Rp44.8 trillion) in metrics year-on-year. In March 2022, DEX recorded a total trading volume of US$136.4 billion (equivalent to Rp2 quadrillion).
Analysts see the increase in DEX trading volume as a sign that decentralized trade is on the rise. The increase in trading volume suggests that many traders prefer decentralized trading exchanges to minimize the risk of fraud and protect their privacy.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
Most Popular Tags
#Prabowo Subianto #New Year #Mother's Day #nataru #NatalPopular
