Binance is now the biggest cryptocurrency exchange in the world, and CEO Changpeng Zhao (AKA ‘CZ’) is a cryptocurrency billionaire. Having this position is the ever-expanding world of cryptocurrency has made him quite knowledgeable about the industry, and in an interview with Fortune, CZ gives his opinion on what the future holds for cryptocurrency and the world of the blockchain.
Blockchain technology is the future – but not just yet
CZ has not been resting on his laurels, and he is always trying to expand his blockchain empire. He has recently made his first acquisition, which is a digital wallet app called TrustWallet, which can also be used to browse decentralized apps, better known as dApps. The move by CZ is a wise one, as dApps are being increasingly popular. Not only are they able to use cutting-edge applications in exchange for their cryptocurrency tokens, but they are also able to maintain their privacy and can rest assured that their data is kept on a decentralized network. The only thing holding people back from using dApps more than they already are is the lack of user-friendliness. CZ predicts that dApps will be more mainstream by 2020. Some of the things we will see more of, according to CZ, is games, social media, review sites, and e-commerce sites all based on blockchain technology. At the same time, Binance will be working on a financial system like that of Bitcoin. The version Binance is working on will be part of a Maltese bank that will run on a decentralized network. Speaking of which, Binance is also working on their own blockchain for a new exchange.
Future blockchains will be specialized
Not all the most popular blockchains will be able to stay competitive in the future market, according to CZ. Ethereum is a very popular blockchain, that is being utilized by many, if not most, ICOs. It is also home to a lost of dApps, and is constantly in the news. But many critics, including CZ, have criticised Ethereum for being too slow. Some newcomers to the market, like Dfinity and Tezos, are attempting to compete with Ethereum on this issue of speed. CZ, however, is not particularly interested in these two companies. Rather, the time of generalized blockchains is about to be over. According to CZ, higher speed will not cut it. Komodo and Tendermint are some of the tools that in the future will make it possible to create spoke blockchains that are specifically designed for one purpose. This will make all services much faster and more complex.
It is not too late to join the industry
There is no bad blood between Binance and the other famous cryptocurrency exchange Coinbase. CZ is not afraid to compliment his competitors like Conibase and Gemini, but says that he is not in competition with them as such. Because they mainly operate in the regulated countries like the US and Europe, they have to deal with a lot more legal matters than Binance. CZ prefers to operate out of Malta because there is no regulation and he can cooperate with the government on developing financial systems. All in all, the future of blockchain and cryptocurrency looks very promising, according to the head of the biggest exchange at the moment.