The CEO of Binance, Changpeng Zhao, thinks that decentralized applications or DApps, are going to play a crucial role in the future digital economy.
Zhao also stated that Binance is looking to build better decentralized digital asset platform, and it is not trying to challenge the dominance of Coinbase in the US.
The CEO of Binance, Changpeng Zhao, recently acknowledged in an interview that very few people are using decentralized applications or DApps. The first reason for this is that most DApps do not have user-friendly interfaces.
Also, despite their present challenges, the Binance founder also believes that there is going to be high demand for decentralized services as centralized applications do not offer users the same potential level of privacy.
Focus on the decentralized platforms
It seems that Binance, which is the largest cryptocurrency exchange in the world, has started investing in decentralized systems. Recently, the exchange acquired Trust Wallet, which is a decentralized cryptocurrency wallet which can also be utilized as a browser for DApps. Notably, Binance is now working on creating its own blockchain too, to launch a fully-decentralized exchange (DEX).
However, currently, it is still the very early stage in DApps. Most of them are just proof of concept or simple games, said Zhao. The Chinese-Canadian businessman also said that soon, it is going to change as we may see more sophisticated, as well as useful DApps in the market, thanks in no small number of developers, as well as tech companies which focus on their development.
The developments of the Blockchain technology
Also, there is likely going to be essential advancements in the technology of Blockchain by 2020, which is going to lead to its increased use in messaging apps, social media platforms, as well as online rating systems, according to the predictions of Zhao.
Commenting on the plans of Binance to create a decentralized financial network, the former Blockchain.info team member has said that is was and is still is too many, the real version of Bitcoin. He also added that the ongoing expansion efforts of Binance, which are including establishing an office in Malta, as well as investing in a crypto-friendly bank, have the purpose to make decentralized financial services a reality.
When he was questioned about the current state of DApps, the CEO commented that blockchain networks which offer smart contracts on their platforms may be too slow for businesses to adopt. He also believes that heavily funded smart contracts projects such as EOS, Tezos, and Dfinity are going to be outperformed by the future competitors, because of the rapid advancements in computing hardware, as well as software solutions.
He also mentioned that there are more innovative projects in the market at the moment which includes Komodo, which has the purpose of providing companies with their own blockchain so that they do not have to share their network with some other individuals or organizations. He suggested that this is a better option with potentially more efficient services, as blockchain such as that of ETH has become heavily congested as of their public nature.
Binance does not want to compete with Coinbase and Gemini
Curiously, when asked about the leading competitor of Binance, the famous Coinbase, which is a massive San Francisco-based cryptocurrency exchange that is about to add Ethereum Classic or ETC, the CEO said that his company was not looking to challenge its dominance in the US.
He explained that in developed markets, there is more money to be made but there is also more regulation and it is saturated with competition. He said that Binance does not want to compete with Coinbase and Gemini. The strategy there also requires a lot of lawyers and lobbying.
The CEO of Binance, Changping Zhao, went on to reveal the business strategy of his company, which is to work closely, as well as directly with the heads-of-state of some smaller jurisdictions with crypto-friendly regulations, such as Malta. He also added that Binance has a perfect relationship with Coinbase, and that it also appreciates what the US-based exchange is doing, and that it is trying to help regulators develop a better understanding of cryptocurrencies.