Ethereum Creator Vitalik Buterin Slams Centralized Crypto Exchanges

Ethereum Creator Vitalik Buterin Slams Centralized Crypto Exchanges

Ethereum Creator Vitalik Buterin Slams Centralized Crypto Exchanges

Ethereum co-founder Vitalik Buterin has weighed in with bold support for decentralized cryptocurrency exchanges, railing against centralized exchanges. However, the genius behind Ethereum did point out certain issues that need to be addressed — such as user authentication — before going completely decentralized. Are centralized exchanges such a threat to the cryptocurrency industry?

Also see: HBUS Crypto Exchange Opens Up Deposits for U.S. Traders

Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts

Centralized Exchanges Attract Traditional Investors

In an interview at TechCrunch Sessions: Blockchain, Buterin subtly stated that the crypto ecosystem should be a mix of both centralized and decentralized projects, considering the needs of a broader audience. But when it came to centralized crypto exchanges, Buterin was highly critical:

“I definitely hope centralized exchanges go burn in hell as much as possible.”

Buterin’s harsh comments came as a protest against centralized exchange listing fees, where projects have to pay up to $15 million USD to list their tokens. Presently, centralized exchanges make up for most of the crypto trading volume.

Centralized exchanges are also vital in attracting institutional capital to crypto, as they offer an investment ambience that traditional investors are used to.

Buterin road

Ethereum Aiming for Decentralization

Buterin also highlighted Chinese mining giant Bitmain’s growing dominance over the bitcoin network. Meanwhile, Buterin is buckling down to make Ethereum completely decentralized. Per Buterin:

“The Ethereum Foundation tries very hard to be a decentralized organization. We try very hard not to have a very hard divide, such as you’re on the inside and you’re on the outside.”

However, user authentication is one of the stumbling blocks in its attempt to become fully decentralized. If users lose the password to their wallet there is no way to retain it. Buterin talked of being impressed with Chinese multi-purpose messaging app WeChat’s recovery system. “I’m interested in social recovery, multi-key schemes,” said Buterin.

Centralized vs decentralized projects have long been a subject of debate among crypto enthusiasts and both have pros and cons. The debate is certain to rage for some time yet.

Do centralized crypto exchanges help attract institutional investors? Share your views in the comments section below.

Images via Pixabay