Vitalik Buterin Is No Fan of Centralized Cryptocurrency Exchanges

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Ethereum cofounder believes that decentralized exchanges (DEX) will soon dominate the markets of crypto to crypto trading.

In the recent interview, the co-founder of Ethereum Vitalik Buterin revealed his rather angry position towards the centralized exchanges. He stressed that they must literally “burn in hell” in his answer at the TC Sessions Blockchain 2018 conference that was held on July 6 in Zug, Switzerland. However, Buterin also admitted that centralized exchanges are unlikely to vanish in the near future.

To a question regarding the future dominance of decentralized exchanges over the centralized ones, Buterin acknowledged that he wants the centralized exchanges to be doomed. But he also told that decentralization process could be very hard due to the way fiats are controlled - most of them are controlled in the centralized way.

Still, crypto is not fiat and it is more simple to decentralize trading between them as there is no need to establish connections with the centralized fiat. Ethereum cofounder believes that decentralized exchanges (DEX) will soon dominate the markets of crypto to crypto trading. The main benefit to DEXes, in this case, is that they don’t need to be registered, making the user experience the easiest and simplest. Buterin is sure that in the near future the crypto world will have plenty of DEXes.

There are concerns, however, that professional traders will not adopt decentralized exchanges in their work quickly. On the request to give comment on this, Buterin admitted that large-scale traders are used to the way the centralized exchanges work. It is highly unlikely that this group of traders will at once turn to the mechanisms offered by transparent and clear decentralized platforms as the trader has a lot at stake.

Nevertheless, Buterin is convinced that moving towards creating more DEX platforms is the right direction, regardless this might not replace centralized exchanges completely. Buterin argues that centralized exchanges have too much power today and they can decide which token becomes big by just listing it, taking huge fees for the listing itself in addition.

At the same time, many large centralized exchanges are working on their decentralized versions. Their list includes Binance, Huobi, and OKEx, who have revealed plans to create their DEXes earlier this year. Interestingly, such DEXes may still have “unfair” mechanisms inherited from their centralized counterparts.

Source: https://coincodex.com/article/1991/vitalik-buterin-is-no-fan-of-centralized-cryptocurrency-exchanges/

 

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