Binance CEO Changpeng Zhao spoke about the Ethereum and DeFi projects in a recent interview. Saying that he was “wrong” about Ethereum, Changpeng Zhao commented on Vitalik Buterin that “he was finally right”.
Binance CEO Zhao spoke to the Cointelegraph team and evaluated the developments in the DeFi world and the future of the Ethereum network. It is now quite between Binance and Ethereum. There is a close relationship because Binance directly challenges Ethereum with its Smart Chain platform.
This smart contract platform, which is fully compatible with Ethereum, has been under development for over a year. Changpeng Zhao said that smart contract developers currently using Ethereum could switch to Binance Smart Chain by simply “copy and paste”. Referring to the high transaction fees and waiting times in the Ethereum network at this point, Zhao emphasized that Binance Smart Chain is much faster than Ethereum.
He Said He Was Unfair About Ethereum
Making a comparison between Binance Smart Chain and Ethereum, Zhao also mentioned the Ethereum 2.0 update, which is expected to be completed by the end of this year or early 2021. At this point, Binance CEO, telling about some of his past memories, shared the following anecdote about Ethereum founder Vitalik Buterin:
“My expectations from Ethereum 2.0 are high. In Ethereum 1.0, I underestimated Vitalik. When he was telling me about Ethereum in 2015, I thought he was doing great things. But Vitalik proved me wrong. He developed Ethereum. ”
This time, Zhao made a similar comment about Ethereum 2.0 as in the past. He thinks that Ethereum 2.0 may experience problems in the areas of transition to PoS algorithm, decentralization and flexibility. But while Zhao is thinking about these, he also hopes that the Ethereum 2.0 update will be completed as soon as possible.
Some DeFi Projects Inflate Like A Balloon
Commenting on the relationship between Binance and Ethereum, Zhao also commented on the developments in the DeFi world. Touching on concepts such as providing liquidity and yield farming, Zhao; He said there are some fundamental similarities between some DeFi projects and those that organized the first digital currency supply (ICO) in 2017.
Due to the ICOs held in 2017, many bubbles occurred in the crypto money industry. But while Zhao said this, he said that thanks to these ICOs, good projects emerged, and Binance was one of them. Similar to the current DeFi craze, Zhao commented:
“For example, I see too many bubbles in the DeFi industry these days. There are too many projects that make empty promises, develop nothing. In addition to these, there are projects that become popular for two weeks and then fade away. But basic concepts such as automatic market making (AMM) and staking will remain in the industry in the long term. The growth rate of the sector will slow down, but some basic concepts will also settle in the meantime.