I may not be Satoshi Nakamoto that’s for sure. I am just another person in this huge industry but I think a lot of people can agree with me and I want to get into the specific details. There are some things that should get the main focus for a better future of the industry. We all strive for a high-quality technology to make everything easier to use and comfortable in order to approach a bigger audience, the final goal is to let every single person in the world access to the industry, to a valued money; that’s something important and that’s why cryptocurrency (Bitcoin specifically was made). Although the cryptocurrency technology and industry has a huge daily growth that we should really appreciate because a revolution popped out and we should get on the wave. If you are reading my blog I guess you are already on the wave.
So, what is actually cryptocurrency? The cryptocurrency we are talking about is a type of digital currencies but unlike other currencies, this one is using a decentralized control. What does that mean? Unlike USD which controlled by the government how much will be printed and by that controlling its value. Cryptocurrency usually has a maximum limit of supply and for example, Bitcoin has an organic growth pretty much like gold and there’s 21m max supply.
So we can agree no one is actually controlling the cryptocurrencies (most of them) and there’s a limit supply, even Satoshi Nakamoto has no control over Bitcoin. There will be 21,000,000 bitcoins and no one can do anything about it. All those millions of bitcoins decentralized all around the world and they are all relied on a decentralized blockchain that is running on many computers all around the world and making it updated every second.
So decentralization, that is something that should be appreciated; that is most important in my opinion. We, millions if not billions of people own the currency and not corporations, government or banks and that thing is priceless.
So that’s why I decided to write this article. We are talking about decentralization but there’s a problem that prevents us from a pure decentralization. What is it? Exchanges!
Only Bitfinex hold 1% of the Bitcoin’s supply which is way too much, instead of decentralization we see a centralization over here. By doing that we are giving too much power to the exchanges, if your money is stored in exchanges you practically own nothing, because no key is under your ownership and that’s a big problem. Big exchanges were hacked and a huge amount of money was stolen, things like that can happen all the time and that’s something the cryptocurrency should focus first, decentralized exchanges should be in the first priority in my opinion.
What is a decentralized exchange?
A decentralized exchange is an exchange market that does not rely on a third party service to hold the customer’s funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed.
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The CEO of Binance, Zhao ChengPeng talks about his vision for the future of the cryptocurrency. I recommend you to watch this video, a lot of essential stuff. CZ mentioned interesting stuff, none of the current decentralized exchanges can survive such a big scale, enough to become a big exchange with millions of users. That’s a big issue, as I said ‘top priority’ in my opinion. Anyway, Zheo ChengPang already stated once there will be a proper candidate they will string to become a decentralized exchange which it’s perfect to know; the hope is that it won’t take too long.
So why not decentralized exchanges? Why is it not in the first priority? First of all, there’s not a proper blockchain enough according to CZ’s words and also it is not profitable enough for most of the exchanges unless you are a really big exchange which is still profitable but not like a centralized exchange.
Anyway, so my say is that big decentralized exchanges with proper pairs are missing. And every cryptocurrency holder should strive to hold his own keys even in exchanges (that’s what decentralized exchanges for) for a maximum safety because safety is above everything. For now, I suggest you hold your cryptocurrency in your own private keys, most recommended is Ledger Nano S but not the only alternative so you don’t have to pay for an alternative.
I’m wishing you and the cryptocurrency industry the best and we are all hoping for a better technology this year!