Both Binance and other players in the crypto market are developing decentralized exchanges that operate without intermediaries, potentially making the companies behind them redundant. Ethereum founder Vitalik Buterin this week voiced sharp criticism of centralized exchanges, saying he hopes “centralized exchanges burn in hell.”
Buterin has long been a supporter of decentralization and decentralized exchanges (DEXs). At the TechCrunch Sessions: Blockchain 2018 event in Zug, he expressed his view that decentralized exchanges will eventually claim a larger market share. In his words:
“I personally really hope centralized exchanges burn in hell as much as possible. In practice, especially at the level of crypto on-ramps, it’s very hard to decentralize, because you ultimately interact with the fiat world and the fiat world only has centralized gateways… There are very useful services there that are difficult to decentralize.”
Buterin also argues that decentralized exchanges are more desirable for the average user because they allow straightforward access without forcing users to hand over all their personal data. For him, dismantling centralized gatekeepers is a primary goal. He added:
“We can really remove this stupid king that exerts power. Centralized exchanges have the ability to decide which tokens become big by choosing to list them and charging crazy $10 million to $15 million listing fees. The more we move away from that world and achieve something that truly promotes blockchain values of openness and transparency, the better.”
In March, Binance announced plans to build a decentralized exchange where the Binance Coin (BNB) will play a central role in the ecosystem. The company said the platform will be a hybrid exchange, though detailed specifics have not yet been released.
Other major exchanges, including Huobi and OKEx, have also announced intentions to decentralize aspects of their platforms, following the broader industry trend. The full interview that inspired much of this discussion is available for viewing below.
Ethereum’s price has risen 4.11 percent over the past 24 hours, reaching €418.67. With a market capitalization of approximately €42.1 billion, Ethereum remains the second-largest cryptocurrency by market value. Prices for the top 200 digital currencies can be viewed in our market overview.