CZ uses the expression “not your keys, not your coins” as an example.
The CEO sees decentralization not as a goal in itself, but as a way to achieve a goal.
Changpeng Zhao (CZ) shared his thoughts on centralization and decentralization in a new post published on the Binance website. There is a lot of talk about decentralization in the crypto community. Since the advent of blockchain technology and digital currency, the term has become more prevalent.
When something is decentralized, it means that power is not concentrated in one location or person. When discussing cryptocurrencies, the same language suggests there is no governing body over the currency.
Multiple Aspects of Decentralization
CEO of Binance, CZ, discusses decentralization. What follows is, in his opinion, the essence of decentralization. CZ sees decentralization not as a goal in itself, but as a way to achieve a goal. He goes on to say that many individuals won’t agree with him since they have different perspectives.
CZ stated:
“In essence, I believe the first thing to understand is that decentralization is not binary, and not single-dimension. There are multiple aspects to decentralization. Every aspect is a gradient scale, not simply black-and-white.”
CZ uses the expression “not your keys, not your coins” as an example. He said that many think keeping their private keys is decentralized. To CZ, it makes sense to think of TrustWallet as decentralized and Binance as centralized in this context.
According to Binance’s CEO, one common criticism about Bitcoin is that “Bitcoin mining is too centralized because the top 2 or 3 mining pools control more than 51% of the hash power.” As CZ points out, this is also valid and is often used as an argument in favor of proof-of-stake blockchains.