Changpeng Zhao (CZ) is the CEO of the largest crypto exchange in the world, Binance† He recently let in a interview with bankless know on YouTube that he expects the world of decentralized finance (DeFi) will have completely turned the crypto sector upside down.
Decentralized Finance
According to CZ, it is not surprising to expect that in the long run the DeFi sector is becoming a lot bigger than the centralized part of the crypto industry. Among other things, decentralized exchanges (DEX), such as Uniswap, for example, have become greater than centralized exchangessuch as Binance.
“I think in five or ten years, decentralized exchanges will be bigger than centralized exchanges…I would say that in a maximum of ten years DEXen and DeFi will be bigger than CeFi.”
Zhao also says that although he believes that centralized crypto protocols will eventually be overtaken by decentralized ones, but he still believes in a future where they can coexist as many people will still prefer the conventional methods of accessing their accounts.
“It will be a long time before the centralized exchanges go to zero, but I think it will be five or ten years before DeFi will be bigger than the centralized ones. But the centralized ones will continue to play a role for many decades to come.”
DeFi becomes more accessible
At the moment, DeFi is still very inaccessible for many people who grew up in a more traditional financial system. For the time being, many of them would much rather use an e-mail address with a password, for example, than a USB stick with encrypted keys† In the future, however, CZ expects this to change.
“I think the technology will improve to a point where the decentralized stuff will be much more useful. It’s actually easier to use because you don’t have to do KYC. You don’t have to do all those tedious processes. You can take control of your wallet yourself.”
