The last few months have seen many ups and downs for Binance. The largest cryptocurrency exchange in the world was able to secure permissions to run globally as part of its expansion plans.
For starters, Binance bagged a license to function in Kazakhstan just a few days ago. The largest cryptocurrency exchange in the world by trading volume has been establishing a base in Kazakhstan over the past few months. The exchange had already made a lasting impression on Kazakhstan regulators through its assistance to the government and acquisition of provisional approval to operate there. The transaction then continued to secure a legitimate operating permit for the area.
However, the next day, with a complete change of events, the exchange BNB chain endured a huge attack. This year, brutal assaults were witnessed on a number of cross-chain bridges. While some networks were able to recover these monies, a few other networks were forced to abandon the entire recovery effort. Unfortunately, a significant attack on the BNB Chain network, which houses the largest cryptocurrency exchange in the world, lost Binance $100 million. This further compelled the exchange to stop all BNB Chain-related activity. Reports have since verified the BSC chain’s return to operations.
Binance’s website, a medium of opinions
Amidst all the hiccups, CZ of Binance decided to share his views regarding centralization and decentralization.
On the official Binance website, CZ published an article outlining his thoughts on decentralization and centralization. The term “decentralization” is frequently used in the crypto sphere. The phrase has become more well-known since the invention of cryptocurrencies and blockchain technology.
There is no centralized authority with absolute control over anything, which is referred to as “decentralization.” When the exact phrase is used to describe cryptocurrencies, it suggests that there is no central bank or other financial entity to regulate the money.
Decentralization, in CZ’s opinion, serves as a means rather than an end in itself. He adds that a lot of individuals will disagree with this statement because they have various perspectives on it.
“In essence, I believe the first thing to understand is that decentralization is not binary, and not single-dimension. There are multiple aspects to decentralization. Every aspect is a gradient scale, not simply black-and-white.”
CZ uses the phrase “not your keys, not your coins” as an example. People, according to him, think that keeping their private keys in their possession is a type of decentralization. The viewpoint that TrustWallet is decentralized while Binance is centralized in this sense, according to CZ, is acceptable.
The CEO of Binance uses the argument that “Bitcoin mining is too centralized because the top 2 or 3 mining pools control more than 51% of the hash power” as an example. This is also valid, in CZ’s opinion, and is one of the arguments made in favor of proof-of-stake blockchains.
Additionally, he discusses himself and the BNB chain, Ethereum and Vitalik, as well as Bitcoin and addresses that contain the vast bulk of the currency. To prove that decentralization has various characteristics, CZ cites all these various cases.
The fact that centralized exchanges serve as a link between centralized and decentralized systems was also mentioned by him. CZ also pledged to keep up her advocacy for liberty and security.