Ethereum founder Vitalik Buterin shared suggestions for regaining the dwindling trust in centralized exchanges (CEX) after the FTX crash.
Vitalik Buterin took the first step after Binance CEO Changpeng Zhao (CZ) previously announced that they would work together to develop a much more reliable system.
In his article published on November 19, Buterin stated that investors who turned to decentralized exchanges (DEX) after the FTX collapse regain your trust He made recommendations to central stock exchanges on his behalf. FTX Aiming to offer a solution to the bankruptcy and the events that followed, he brought both technical and intellectual criticisms of the functioning of the stock markets.
Buterin, to ensure the stability of crypto exchanges “Non-interactive zero-knowledge proof“ (zk-SNARK’s) The argument called for work to explore beyond “fiat currency” methods, including technologies such as
Buterin, who offers a guide on how to be a secure centralized exchange, has strengthened these statements in his article with a lot of data and algorithms. zk-SNARK’s Emphasizing the importance of the system of supporting with one confirmatory He wrote that the data between This system, in which data is verified by the prover, without disclosing any specific information beyond the validity of the transaction. vital for stock markets underlined that.
Buterin, who also developed an argument on the proof-of-reserve system in exchanges, Merkle Tree Although the system has an important provision in terms of accuracy and transparency, weak in security He said he stayed. Binancerecently announced that it will go the way of proof-of-reserve with the Merkle Tree system.
Buterin, who mainly focused on zk-SNARKs in his article, suggested using zk-SNARK to provide security while proving the true value claimed. Protecting the confidentiality of data while confirming the accuracy of the data Buterin specifically stated that thanks to this system, the exchanges will be much more transparent and secure.
CEO CZ is a twitter by sharing this new article by Buterin in his post “Vitalik’s new ideas. He’s working on that.” made statements. It seems that CZ is following the process closely and will not hesitate to get help from the “genius child” of cryptocurrencies in the development processes for the future.