The development of DeFi exchanges may cause Binance to disappear in 10 years

Patrick Hillman, director of strategy at Binance, said that the decentralized finance (DeFi) sector in the world of cryptocurrencies could reach such a level that it would make Binance disappear. According to him, now digital assets are strongly beginning to move towards full decentralization.

The situation on the market, of course, is aggravated by the moment with the collapse of FTX, after which many traders and investors lost confidence in centralized exchanges. Patrick Hillman gave an interview to CoinDesk, in which he said that Binance is now trying in every possible way to maintain the loyalty of its customers by adding evidence of reserve funds to its ecosystem.

Now the main cryptocurrency exchange is actively involved in the restoration of the cryptocurrency market. For this, Binance decided to allocate up to $2,000,000,000 from its corporate reserves. According to Patrick Hillman, director of strategy at Binance, these funds are separate from client money.

Although the cryptocurrency exchange does not disclose the specific amount held in a corporate account, Hillman says the platform has strong confidence in its reserve funds. Changpeng Zhao, CEO of Binance, previously reported that the cryptocurrency exchange is ready to allocate $1,000,000,000 to buy distressed assets. After that, he announced the forthcoming creation of a fund to help projects that are currently experiencing a liquidity crisis and have a promising future.

Hillman said the process is far from easy and requires a multi-step approach. In addition, in order to implement the desired Binance must involve a third-party auditor in the process. It will take a long time to fully implement the proof system, but Binance wants to maintain the trust of customers and will continue to do so for as long as necessary. The Mazars organization can act as the auditor itself, which will help implement the proof of reserve system. They previously served the company of Donald Trump, the former President of the United States.

Earlier it became known that Binance turned to the audit company Mazars to conduct an audit of the reserve verification system. Until February 2022, Mazars served the company of former US President Donald Trump.

The Hong Kong cryptocurrency exchange is concerned about this issue, since according to Binance's chief strategy officer, the platform is already larger in scale than the New York Stock Exchange, London Stock Exchange and Tokyo Stock Exchange combined. Despite understanding the importance of implementing a proof of reserve system, Patrick Hillman reports the company's embarrassment that the cryptocurrency platform has not addressed this issue sooner.

If Binance manages to put the proof-of-reserve system in place and the cryptocurrency exchange is able to regain customer trust and attract new ones to the platform, then the “disappearance of Binance” could be delayed. However, it should be understood that the words of the director of strategies of this exchange make sense and if the community continues to move into the sphere of decentralized markets, then eventually the market we are used to will take on a different look.

Earlier , Mark Zuckerberg, who founded Meta, spoke about possible cardinal changes in the world we are familiar with. He believes that in 10 years the world can completely change and all the technology that we use today can be replaced by a new technology associated with the virtual world. Virtual worlds will be able, in his opinion, to make room with realities, taking a certain place in the world of the future, but the main battle in the field of trading seems to be between centralized exchanges and the decentralized finance sector.