Fans and critics will always have different predictions when it comes to what they think the future could bring to the cryptocurrency industry, and the blockchain technology behind it. But when Changpeng Zhao — the CEO of the world’s largest exchange Binance — shares his views, everyone tends to give it some serious thought. Among the exciting predictions made by Zhao is the emergence of decentralized apps and blockchain-based services, as well as the increasing importance of security for the survival of the entire industry.
Decentralized Apps, Blockchain-based Services
Zhao predicts that the future will be all about decentralized apps, also known as DApps. While a number of these apps have already been released in the last two years, mass adoption has been particularly slow, and few people use them. But that’s going to change further down the road according to the Binance CEO in an interview with Fortune.
Zhao says that DApps will eventually see increased usage, but it might take some time for consumers to get used to them. He predicts that people will start seeing blockchain-based games, social networks, rating systems and even messaging by 2020, after which decentralization might eventually spread to the e-commerce space. One of the main advantages of DApps is that they provide more privacy to their end users as there is no central server controlled by a single entity.
Security Is Key to Survival
Zhao also revealed that security will become increasingly important to blockchain and the crypto industry’s future. Security is not just a key component but is actually “the fundamental pillar for the industry to continue existing,” he told Forbes in an interview.
After the string of hacks that affected various crypto exchanges, it is understandable that people are now clamoring for tamper-proof crypto and blockchain-related services for their peace of mind. When it comes to these hacks, Zhao believes that it could be a combination of factors that made them happen, such as poor network security and physical security, and even the employees of these exchanges might have contributed to their vulnerability. The trick to the blockchain and crypto industry’s survival is to make the system and services more secure and shore up public confidence in using these services.
Relationship Is Good Among Industry Players
Surprisingly, Zhao revealed that there are no fight-to-the-death battles for market share among well-entrenched players in the crypto industry. He believes that the market is big enough to share, and for those who might have wondered, Binance has an excellent relationship with US-based Coinbase.
Perhaps part of the reason is that Binance is not really directly competing with Coinbase in terms of market coverage. While Coinbase is well-entrenched in the US market, Binance is focusing its expansion in other areas such as Malta.
The Binance CEO told Fortune:
“In developed markets, there’s more money to be made but more regulation and it’s saturated with competition. We don’t want to compete with Coinbase and [Winkelvoss-owned] Gemini. The strategy there requires lots of lawyers and lobbying.”