Vitalik Buterin about centralized exchanges: "Burn in Hell"

Vitalik Buterin about centralized exchanges: “Burn in Hell”

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During the speech at the TechCrunch Sessions Blockchain event in the Swiss Zug, the creator of Ethereum Vitalik Buterin made it clear that he is not a big fan of centralized exchanges of cryptocurrencies.

“I definitely hope that they will burn in hell as much as possible,” he said. “There is no reason for projects to pay $10- $15 million for listing to give people the opportunity to trade their tokens.”

According to Buterin, centralized exchanges exist only because today they serve as a link between the cryptocurrency and the fiat worlds. “And the Fiat world has only centralized ways,” he added.

While decentralized exchanges continue to take their place in the market, Buterin argues that from the user’s point of view, they have undeniable advantages, because all they do is provide a tunnel through which tokens of two different names are transferred between user-defined addresses.

In addition, during his speech, Buterin touched on many different topics. He noted that people have different needs, so the world can not be completely centralized or decentralized. He also expressed concern about the events in Sichuan, where as a result of flooding a large farm for cryptocurrency mining was damaged.

Speaking about the work on Ethereum, he said that the developers are doing everything possible to keep the network decentralized, but sometimes they have to face difficulties, especially when it comes to user authentication.

“One of the most serious challenges for Ethereum is true decentralization. The problem is reduced to user authentication. Of course, you can generate private and public keys, which users will dispose of themselves. Sending ETH is signing a transaction, there’s nothing complicated in this. But what happens if you lose the keys? What happens if you lose your password? If all methods of user authentication prove to be a failure, it will be difficult to achieve mass distribution,” he explained.

Buterin also mentioned a number of projects that are developed on the blockchain Ethereum or inspired by his example. According to him, he is discouraged by the fact that many of them disappeared without even having time to start development, and some were not at all decentralized.

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