An interesting exit came from the Binance official, the world’s largest cryptocurrency exchange. The firm’s ‘Central Exchange’ may not be around in 10 years, the official said. Patrick Hillman from Binance noted that the crypto industry is moving towards decentralized finance. Therefore, he stated that the centralized exchange may lose its validity.
Patrick Hillman: The centralized stock market may not exist in 10 years!
Binance chief strategy officer Patrick Hillman said the company’s centralized exchange may not exist in 10 years. He then clarified why. Accordingly, he noted that the cryptocurrency market is moving towards decentralized finance (DeFi).
cryptocoin.comAs you follow, Binance rival exchange FTX crashed dramatically. This collapse also affected other cryptocurrency exchanges and crypto companies. Binance, on the other hand, has taken some steps to reduce this effect. For now, the exchange offers ‘proof of reserve’, a way to show clients that their assets are fully supported. Thus, it tries to maintain the trust of customers. However, Patrick Hillman said on Thursday on CoinDesk’s ‘First Mover’ program that the process has been slow. In this context, he made the following statement:
It will be a multi-step process, including bringing in a third-party auditor. It takes time to audit the scope and scale required for Binance.
“Binance has been slow in generating proof of reserve”
Meanwhile, Binance, along with other leading crypto-based companies, has spearheaded an ‘industry recovery initiative’ for Web3 to help fund startups in the industry. The exchange announced that it will contribute up to $2 billion from its institutional reserves, which is separate from the custody reserves where users’ funds are held, Hillman said.
While he did not disclose that the exchange ‘trusts’ its reserves and how much money is held in its institutional account, he added that the exchange has implemented Merkle Tree analysis, a way for users to verify their presence on the platform. Hillman said that while Binance is ‘larger than the New York Stock Exchange, the London Stock Exchange and almost the Tokyo Stock Exchange combined’, he was ‘a bit embarrassed’ about how slow it was to build a proof of reserve. In this regard, he made the following comment:
Eventually the market will make it mandatory. This much. There are no ifs, ors, buts about it. We should have seen this a long time ago. However, we are now closing the gap.
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