Changpeng Zhao, the CEO of Binance, is very bullish on the future of blockchain technology and its societal impact.
Binance has certainly clawed its way up to the top of the cryptocurrency exchange chart. The exchange recently made waves when it bought Trust Wallet, its very first acquisition (with more purchases to come). Plus, it looks to have a banner year as the exchange expects to earn over a billion dollars in revenue by the end of 2018. CEO Changpeng Zhao is not content to sit on his laurels, and in a recent interview with Fortune, he discussed his views on the future of blockchain.
Ethereum Blockchain Will Fall
While Changpeng Zhao explained several of his blockchain future views, one of them stood out. He said that the current blockchains in existence are way too slow. In fact, he states that blockchains that are built around smart contracts will never be fast enough for users.
He envisions a future where blockchains that are more specialized will rise up and take up positions of prominence. All the current contenders for the crown, such as Tezos and Eos, will not be victorious in the end. While Ethereum is currently the king, he believes it will fall to these new, specialized blockchains.
Friendly Competition
Another facet of the Binance CEO’s vision of the future is that the blockchain/cryptocurrency pie is big enough for everybody. He specifically cites Coinbase, saying that Binance has a “very good relationship” with the rival exchange.
He says that exchanges are staking out their own territory but are not fighting tooth-and-nail with each other. This is due to the myriad of different customs, legislation, and regulation that is in place when it comes to finance and cryptocurrency. He adds:
In developed markets, there’s more money to be made but more regulation and it’s saturated with competition. We don’t want to compete with Coinbase and [Winkelvoss-owned] Gemini. The strategy there requires lots of lawyers and lobbying.
His last observation of the future of blockchain is that true decentralization will take some time to come about. The Binance CEO points out that there are plenty of dApps currently available, but the level of adoption is still really low. He says:
It’s still the very early stage in dApps. Most are just proof of concept or simple games.
Changpeng Zhao thinks we’ll have to wait a few more years before blockchain-based applications really hit the mainstream and are useful. When it does hit the mainstream, it will impact everything from social networking to games to finance. Overall, the Binance CEO is very bullish on a decentralized future built upon blockchain.
Do you agree with Changpeng Zhao about the future of blockchain technology? Let us know in the comments below.
Images courtesy of Shutterstock.
