Binance CEO CZ Stated About Centralization And Decentralization
CZ published a post discussing his thoughts on decentralization and centralization on the official Binance website. In the crypto world, the term “decentralization” is frequently used. Since the introduction of blockchain and cryptocurrencies, the term has grown in prominence.
The term “decentralization” refers to the absence of a centralized authority having ultimate control over anything. When applied to cryptocurrency, the same word means the lack of a central bank or financial organization to control the money.
CZ considers decentralization to be a means to an end rather than an end in itself. He also claims that many individuals will disagree with this remark since their perspectives differ.
“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.It is also important to remember that decentralization is a means to the goal, not the goal itself. The goal is freedom, security, and ease of use.”
CZ uses the analogy of not your keys, not your coins. People believe that keeping their private keys is a type of decentralization, according to him. CZ feels that the viewpoint that TrustWallet is decentralized while Binance is centralized is correct.
Binance CEO cites the opinion that Bitcoin mining is too centralized because the top 2 or 3 mining pools control more than 51% of the hash power. This is also true, according to CZ, and is one of the reasons why people like proof-of-stake blockchains.
He also discusses Ethereum and Vitalik, himself and the BNB chain, and Bitcoin and addresses that have the bulk of the money. CZ uses all of these instances to demonstrate that decentralization has many characteristics.
“You may hear people say ‘Ethereum is centralized because Vitalik can heavily influence its direction.’ This has truth to it. Blockchains with clearly associated founders have this drawback. Bitcoin is more decentralized in this regard.”
He went on to say that centralized exchanges serve as a link between centralized and decentralized systems. CZ also stated that it will continue to push for freedom and security.
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