In an interview with a reporter from TechCrunch on July 6, Ethereum creator Vitalik Buterin commented, “I definitely personally hope centralized exchanges burn in hell as much as possible.”
According to Buterin, decentralization is paramount to the core principles of transparency and openness in the cryptocurrency space by getting rid of the “stupid king-making power.”
Buterin’s assertion has generated debate on the value of centralized cryptocurrency exchanges versus decentralized ones.
Changpeng Zhao — CEO of Binance, a leading, centralized cryptocurrency exchange founded in 2017 — responded to Buterin’s comments on Monday. Zhao tweeted: “Got asked a few times, re: ‘Vitalik’s burn in hell’. Let’s not wish others to ‘burn in hell’. Let’s have a bigger heart, and appreciate the fact that we are part of an eco-system [sic].”
According to Rumi Morales, venture capitalist and partner at Outlier Ventures, it’s understandable that many people opt for centralized platforms since they feel more comfortable with the technology, comparing it to the turbulent early days of the Internet.
Centralized exchanges have made significant strides in contrast to decentralized ones for that very reason. Winklevoss twins’ Gemini platform was recently licensed to exchange Zcash on their site. It was also the first licensed Ether exchange platform and expects to be able to trade Bitcoin Cash and Litecoin in the coming months. Meanwhile, countless unlicensed, decentralized exchanges have been shut down by government regulators, damaging crypto’s reputation in the process.
Morales expects a shift in popularity and widespread use of decentralized platforms in the future, as people become more comfortable with the concept. Meanwhile centralized networks are working to gain users’ trust. One route to this, they have decided, is championing projects for the greater good. For instance, Binance donated over $5 million USD to victims of flooding in Japan in July 2018, and Ripple, a centralized cryptocurrency, has also contributed to the fund.
According to JP Morgan, one-third of centralized crypto exchanges are hacked. Decentralized ones are not immune, though. Just 24 hours after Buterin’s colorful comments, decentralized exchange Bancor suffered a security breach resulting in roughly $13.5 million USD in losses.
Bancor commented on Buterin’s contentious comments, tweeting, “‘Burning in hell’ is a bit extreme, but we do agree with Vitalik Buterin that decentralized solutions — such as Bancor — are the future of blockchain and value exchange.”
- Chicago Blockchain Project to Hold First Voice of Blockchain Event - July 31, 2018
- How the .HIVE Gaming App is Buzzing Into the Cryptosphere - July 25, 2018
- What Would Happen if Bitcoin Crashed? Not Much - July 23, 2018
- Venture Capitalist Rumi Morales on the Crypto-Space - July 23, 2018
- Brian Armstrong and Vitalik Buterin Make a Rihanna Sandwich in Fortune’s “40 Under 40” - July 23, 2018
- This Week on Crypto Social Media: Barry Silbert, Bernie Sanders and ‘Supine Ignorance’ - July 20, 2018
- What Do Jeremy Renner of ‘The Avengers’ and a $40 Million Bitcoin Heist Have in Common? - July 17, 2018
- Bitcoin Will Reach $20,000 USD by End of 2018, Says Expert - July 16, 2018
- Accenture and Thales Debut Blockchain Technology for the Aerospace Industry at Farnborough - July 16, 2018
- This Week on Crypto Social Media: ‘Burn in hell,’ Facebook Acquiring Coinbase? - July 13, 2018
- Quantum Computing Will Impact Blockchain Technology — Find Out How - July 13, 2018
- Behind the Scenes of Ivan on Tech’s Crypto YouTube Channel - July 13, 2018
- Taking on Alexa and Cortana, Snips Debuts Blockchain-Based AI Assistant - July 13, 2018
- Trump Delivers Executive Order to Establish Crypto Fraud Investigations Task Force - July 13, 2018
- How Vitalik Buterin’s “Burn in Hell” Comment Sparked Discussion on Centralized Exchanges - July 12, 2018
- Google Missed Out on the Blockchain Frontier: Sergey Brin - July 12, 2018
- FinTank Panel: Blockchain Beyond Banking - July 11, 2018
- Bancor Set to Reactivate After $13.5 Million USD Security Breach - July 10, 2018
- Walmart Files Patent to Use Blockchain in Securing Package Deliveries - July 10, 2018
- YouTube Named in Class-Action Lawsuit Against BitConnect - July 10, 2018