"DeFi is the future, but Centralized Exchanges are still more popular."

Last updated: 2021-04-08  |  552 Views  | 

"DeFi is the future, but Centralized Exchanges are still more popular."

In an interview with Youtube Boxmining, CZ said that DeFi made the area even more interesting, in particular, he pointed to automatic market makers (AMM) as an interesting invention.

“I think DeFi is really a creative space. And I think it's really nice. Initially, when people talk about DeFi, they think about lending so you can lend your coins. But now you lend coins to have liquidity when liquidity is good. The more people come and trade, the easier it is. I think automatic market makers are an interesting invention and it's very easy. ”
CZ also said that Binance "supports DeFi" and is working on a number of DeFi and AMM projects.

But despite CZ's belief in DeFi, he admits it is new and most projects will fail, so if you invest in DeFi, you should keep that in mind. Failing doesn't mean DeFi is bad, it will only be a handful of people who will succeed, and there will be people who are successful, just not people who will be very successful. "

Binance has invested heavily in DeFi and has a large number of DeFi tokens listed on their respective exchanges, and while Binance believes in DeFi, CZ says most users today still prefer a centralized exchange, so Binance does. Service the products people want to keep using.

“I think we have grown because we listen to what users want to use and push it. Nowadays, most users still choose a centralized exchange because it is much easier to manage email and passwords. And there is more customer support than saying to back up your own keys, and if you lose them, what will you do? I think if we can make backups more secure, easier, and usable, I think DEX. It will be the future, so we will continue to invest in DEX and build many more projects now, centralized. exchange is becoming more and more popular with the number of users and we just have to provide the products people want to use.

Smart Chain
CZ also spoke about Binance Smart Chain, which wanted to be able to match orders quickly on the chain and handle about a hundred thousand orders per second, he said. To achieve that level of efficiency, they had to utilize Binance Chain's smart contract capabilities.The Binance Smart Chain launched as an Ethereum-compatible smart contract parallel chain, so it supports solidity and compatibility. With Ethereum Virtual Machine (EVM)

The main feature of Binance Smart Chain is the compatibility with Ethereum based smart contracts. It is also completely open source so anyone can deploy contracts on the platform. Based on the CZ data, the Binance Smart Chain is an easy solution for anyone. Used to deploy smart contracts on Binance Chain without further learning.

CZ also revealed that they are working on designing a staking mechanism for BNB on the Binance Smart Chain, which CZ expects to release the staking mechanism between late August and early September 2020.

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