As decentralized finance (DeFi) gains momentum, exchanges like Binance are finding ways to coexist with innovations like DeFi. The co-founder and CEO of Binance, Changpeng Zhao (CZ) said that DeFi is an innovative space and investing in decentralized exchanges will not be a challenge for regular exchanges.
In an interview on Boxmining’s YouTube channel According to CZ, DeFi makes the space more attractive. In particular, he highlighted Automatic Market Makers (AMMs) as a fascinating invention.
“I think DeFi is a really innovative space and I think this is really good. When people talk about DeFi, they first think about borrowing so they can borrow their coins, but Now they are lending the coins to provide liquidity. When liquidity is good, people act more and more easily. I think auto market makers are an interesting invention and it’s really easy. This aspect will remain. “
CZ added that Binance “supports DeFi a lot” and he does many projects around DeFi and AMM.
But as much as CZ believes in DeFi, rI know it’s a new field and most projects fail. So when investing in DeFi this is something you should consider. “I mean that most projects in DeFi will fail. That doesn’t mean DeFi isn’t good, but only some will succeed. The few who succeed will have unbridled success“.
Binance has invested heavily in DeFi and has listed many DeFi tokens on the stock exchange. AND While Binance believes in DeFi, CZ said that most users still prefer a centralized exchange todayTherefore, Binance will continue to offer products that are intended to be used by people.
“I believe that We’ll go by the number of users to see what they want to use and make it available to them. Nowadays, most of the users still opt for a central switch because it is much easier to deal with an email and password and have customer service than telling you to back up your own keys and when you can lose there’s nothing to do. I’m thinking about the number of whether we can make secure backup easier and more user-friendly. I think DEX will be the future. So we will continue to invest in DEX and also create several projects. Currently, centralized exchanges are more popular due to the number of users and we only want to offer products that are used by people. “
CZ also talked about it Binance Smart Chain, which wants to match orders in the chain very quickly and can process around a hundred thousand orders per second. He said in order to achieve this level of performance they would have to turn off Binance Chain’s smart contract features. The Binance Smart Chain was published as a parallel chain that supports Ethereum compatible smart contracts, therefore supports Solidity and is compatible with the Ethereum Virtual Machine (EVM).
The main feature of Binance Smart Chain supports smart contracts based on Ethereum. In addition, it will be completely open source, so anyone can provide contracts on the platform. According to CZ Binance Smart Chain It’s an easy way for users to deploy smart contracts in Binance Chain without an additional learning curve.
CZ revealed that too Binance is working on the development of a staking mechanism for BNB for Binance Smart Chain. CZ expects to introduce the stakeout mechanism between late August and early September 2020.
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