The CEO and Co-Founder of Binance, Changpeng Zhao, popularly known as CZ, elucidated on the upcoming Binance decentralized exchange, during an interview with Boxmining at Binance Conference. He also spoke about whether the DEX will have the same number of ERC20 token enlisted.
He started by speaking about Binance having both centralized and decentralized exchanges, and whether the two would be seen competing in the market. Here, CZ outrightly stated that there would be no competition between centralized exchange and decentralized exchange. He further classified exchanges into three types: fiat-to-crypto centralized exchanges, crypto-to-crypto centralized exchanges and DEX.
CZ stated that fiat-to-crypto exchanges cannot be decentralized because of the hurdles that would be caused by banking institutions and then, on the other side there are people who prefer crypto-to-crypto centralized exchanges because of factors such as high-liquidity, security and speed. He said:
“Most of the guys in the core community are heavy power users and they’re loud, they speak more and they want to use DEX. So we see that not really competing, we’re just offering different solutions to different people and we always let the user choose and we let the market choose.”
The CEO of the largest exchange platform went on to say that the market is currently choosing centralized exchanges over decentralized exchanges, as they are much bigger. However, he added that everyone is already aware of the fact that decentralized exchanges “will be the future”.
This was followed by CZ speaking about whether the Binance DEX will have the same number of assets like the ERC20 tokens. Here, he stated that the decentralized exchange will have much more coins enlisted as there is less control and it is decentralized. He further added that Binance chain is a native chain, and people can issue their own tokens on the chain. He added:
“So some of the ERC20 tokens may convert to the Binance chain tokens and we already have confirmation on a number of large projects. We’re doing that they have to migrate completely from Ethereum on to Binance. So basically if you’re only using ERC20 as a token, there’s no real reason for you to stay on Ethereum. With Binance chain, you’ll get one second transaction confirmation and one confirmation is final.”
CZ even claimed that the chain is much faster and that the transaction fees are cheaper. He added that there are a lot of advantages for the token projects to move from Ethereum to Binance, which also integrates a native DEX.
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