BNB skyrocketed, with Zhao Changpeng's 4000 word long article explaining the advantages and disadvantages of "centralization and decentralization"

Disclaimer: This article does not constitute any investment advice.

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Will BinanceDEX, a decentralized exchange, surpass the centralized exchange's monetary security?

Wen | Du Huitang Moon

Production | Mars Finance (ID: hxcj24h)

Entering the Chinese New Year, Coin An has become unstoppable.

The platform currency BNB entered the top ten of CoinMarketCap's market value on the second day of the Lunar New Year, and has since continued to rise, emerging from an independent market in the declining cryptocurrency market. In February and November, the BNB/BTC trading pair reached a record high of 0.0026808. He Yi, co-founder of Coin An, made a bold statement when forwarding market screenshots:

We are not entrepreneurship, we create history

The factors driving BNB to rise against the trend include the long-term stable "cultivation" of Coin An, as well as the positive speculation triggered by the short-term BTT landing on Coin An Launchpad, BinanceChain, and the upcoming launch of the decentralized exchange BinanceDEX.Previously, Zhao Changpeng, the founder of Coin An, announced that Coin An Chain can generate a new block per second, enabling real-time transactions. Once launched, it can meet the needs of e-commerce, payment, and other transactions. BinanceDEX, the decentralized exchange of Coin An, will also operate on the chain.

Coin security chain is built on the CosmosTendermint protocol, based on the Byzantine fault-tolerant and delegation proof of interest consensus mechanism, emphasizing high transaction throughput, allowing developers to create tokens on the chain while using BNB to host ICO projects.

BinanceDEX, which runs on the Coin Security chain and uses BNB as fuel (Gas), has huge performance advantages, and the application interface and user experience will also be aligned with the centralized exchange of Coin Security. Like other decentralized exchanges, BinanceDEX also adopts multi node support to ensure exchange security.

There has always been controversy in the industry regarding the advantages and disadvantages of centralized exchanges and decentralized trading.Due to factors such as high liquidity and ease of use, most people choose centralized exchanges. However, some people also recognize the advantages of decentralized exchanges such as not requiring KYC and more secure multi node support. They also believe that its "decentralized" design conforms to the core ideas of blockchain and represents the future direction of the industry.

How does Zhao Changpeng view centralized and decentralized exchanges? How will BinanceDEX address the issues of poor scalability and lack of liquidity in previously decentralized exchanges? As BNB continues to rise and BinanceDEX is about to be launched, Zhao Changpeng posts a long article on the Coin An blog, sharing his thoughts on centralization and decentralization.

The following is the full text of "Zhao Changpeng: Centralization vs. Decentralization", compiled exclusively by Mars Finance (WeChat: hxcj24h).

Centralization vs. decentralization is a common topic in the blockchain field, and I am often asked about it. In that case, let me share my viewpoint.

There are more important things than centralization or decentralization, which are: safety, ease of use, and freedom.

We are relatively certain about certain things: our property is safe; Our money will not suddenly disappear; We can control our own property, although we still look forward to greater freedom. Ease of use means that we don't need to spend a lot of money carefully. In other words, there is no need to sit idle in the bank for hours or wait for days to use the taxed salary.

Some hardcore "crypto players" firmly believe that decentralization is the ultimate goal.But I believe that decentralization is a means to enhance freedom and security (at least under our own control), and (I hope) usability cannot be sacrificed.

Many people understand 'decentralization' as an absolute concept: either decentralization or centralization. I think there is a gradient of change between centralization and decentralization in practice. A more accurate question should be: How should we (crypto exchanges, society) achieve decentralization in the present and future? If decentralization only increases freedom but reduces safety and usability, then it will only generate net negative values and may not be worth it.

Despite that, personally, I am a staunch advocate of decentralization. In the current society, power is too concentrated and only held by a few people. It should be more dispersed.However, in many aspects of reality, absolute decentralization cannot solve every problem. On the contrary, improving the level of decentralization through multiple small steps at once is actually more practical and beneficial.

Let's discuss in detail the three major factors mentioned above.

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securitysecurityTo this day, no individual, organization, or even government can shut down the Bitcoin network.

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To avoid losing the private key, you need to back up the data multiple times, which only you can view; It is necessary to record the private key on one or more sheets of paper for physical backup, ensuring that they are not burned or flooded, and not seen by others; You also need to save the private key in an encrypted USB drive. In addition to the necessary encryption steps, you also need to ensure that the USB flash drive has backups in multiple locations to prevent loss due to earthquakes, floods, and theft. Another point is that if you unfortunately pass away, you may also hope to obtain the encrypted assets you left behind through preset settings or death switches.

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I have an unpopular viewpoint that may lead to criticism.securityfreefreesecurity

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Today, even Bitcoin addresses can be daunting for many people. Why not use a short and clear form like an email or Twitter account, so that everyone can understand? When most people come into contact with blockchain and trade encrypted assets, they have to watch a series of terrifying digital inputs and outputs. Not to mention using decentralized exchanges today, in most cases, he needs to be a technical expert.

Once again, the market has already voted with feet. Centralized exchanges are more popular, as their trading volume and liquidity are currently much higher than decentralized exchanges.

As one of the largest centralized exchanges, Coin On is also promoting the development of BinanceDEX, a decentralized exchange. BinanceDEX is a decentralized exchange running on the BinanceChain public chain. As above, we offer two options.

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Degree of decentralization

Let's take a look at the different degrees of decentralization.

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Other blockchain networks are more centralized. However, BinanceChain will adhere to decentralization and allow users to hold personal private keys. They no longer need to deposit funds on third-party platforms to trade encrypted assets. Of course, the founding team has a greater impact on the strategic development direction of the new public chain. But we believe that this is a good thing for the new public chain, as it can make decisions faster and improve efficiency.

In a decentralized world, I believe that the market will generate many choices. Extraordinary moments, extraordinary choices are often more likely to win. In the end, the market will make a choice.free

Psychology and Philosophy

So, which is better, centralization or decentralization?

A well-known quote from "Romance of the Three Kingdoms" provides the answer to this question: "The overall trend of the world is to divide and unite over time, and to unite over time will divide and divide.

In a decentralized world (at least in history so far, the world has been decentralized), we will experience more complications. As social animals, humans need to gather together. Choosing leaders and following them has always been human nature. When the team starts to grow or is merged (or taken over) by other races, we also become more centralized as a result. In the early days of centralization, leaders were mostly heroic figures, with a benevolent and selfless heart, and caring for their people. The people live and work in peace and contentment. But a few generations later, the heir to the throne (either by blood or by vote) no longer cared about the people, but longed for more power and wealth. We have no right to accuse them, because it is all human nature. When the heir to the throne is more concerned with personal interests than caring for others, the hungry and cold people will yearn for decentralization. The ultimate result is that the people rose up and gave birth to a revolution. History is constantly advancing in such a cycle.

Today, there is a more centralized side to our world. Some governments have too much power, controlling everything from what people say to how they spend their funds. That's why so many people demand decentralization and cryptocurrencies are so popular.

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