Exchange public chain, gimmick or revolution?

OK, Huobi has finally launched the public chain test network recently, and the drama that has been warming up since two years ago has recently kicked off.

The public chain of the exchange started from Binance, and has many followers, including OK and Huobi, both of which are the top three.

It has been nearly a year since the Binance public chain was launched, and OK and Huobi have finally caught up. So far, the three major exchanges have stood on the same track again, but Binance has already led Binance DEX for a year.

The competition among the three major exchanges has become inexhaustible. Binance and OK are competing fiercely. Although Huobi does not participate in the competition, it has never fallen behind in the competition.

After OK announced the launch of the public chain testnet and the bombing of destroying 700 million OK coins, Huobi launched the same bombing within a few days. It can be seen that the competition among exchanges is normalized. No one dared to relax in the slightest.

first level title

Marco De Rossi published an article "The Gluing Manifesto" in February. Teacher Liu Yi translated it and made a preface. In the preface, teacher Liu Yi raised such a question and gave an answer :

I deeply agree with this point of view. In the development of cryptocurrency, the value brought by speculation and hype cannot be erased. Without the emergence of centralized exchanges, these values ​​will be difficult to realize.

Centralized exchanges have contributed a lot, but they have also captured most of the value in the industry, and they are predators at the top of the blockchain food chain. In the dark jungle of the blockchain, only hackers can occasionally tear a piece of meat from the exchange.

Exchanges not only have users, they are also very rich, and there are massive assets in users, which gives them great power, but no one can supervise the exchange, which has caused the power of the exchange to expand.

There are too many rights and no one to supervise, which has a big problem:

• Exchanges are frequently stolen, real or fake is not important, most of the losses are borne by users;

• The exchange has unlimited chips to be the banker, whether it is or not is not important, the user thinks that you have the ability to be the banker at will;

• The exchange keeps inserting pins, whether it is intentional or not is not important, users think that you have a tendency to intentionally insert pins;

• It doesn't matter whether the exchange misappropriates user assets or not. Users think that you may have embezzled.

Users’ guesses are not all made out of nothing. In fact, in an unregulated financial field, it is not uncommon for powerful institutions to do things like manipulate the market and misappropriate users’ funds.

The distrust between users and centralized exchanges is getting deeper and deeper, V God even issued a statement that "all centralized exchanges should go to hell as soon as possible".

If no change is sought, centralized exchanges will only become more and more stigmatized, and their brands will become cheaper and cheaper. With the evolution of technology, they may eventually be abandoned by users.

As a player at the top of the blockchain food chain, he is naturally unwilling to go on like this. Starting from Binance, exchanges have deployed public chains one after another, and the first thing to do is to decentralize the exchange, and you must first kill yourself!

In addition to revolutionizing one's own life, the public chain is also one of the most important infrastructures of the blockchain. Seeking greater development potential in the future is also what exchanges want to do.

first level title

first level title

1、Binance Chain

first level title

first level title

first level title

Binance Chain's focus can help it quickly accumulate strength and establish advantages more easily, but the business scope is too narrow and the ceiling is obvious.first level title

first level title

first level title

first level title

first level title

first level title

first level title

Judging from the trading experience of Binance DEX, there is a delay in the operation, but it is less than 2 seconds, and there is no obvious sense of waitingfirst level title

first level title

first level title

first level title

2、OKChain

first level title

first level title

first level title

From the perspective of the five ecological directions announced by OKChain, its scope coversStable currency, DEX, DeFi, smart contract, cross-chainfirst level title

first level title

first level title

first level title

first level title

first level title

OKChain adopts on-chain governance. To initiate a vote, you need to hold OKT. OKT holders can participate in voting.first level title

first level title

3、Huobi Chain

The Huobi Chain testnet was launched at the end of February,first level title

first level title

first level title

first level title

first level title

first level title

first level title

first level title

first level title

Not to mention the risk problems caused by money and silk, and the obstacles caused to the public's use of products, just sayfirst level title

first level title

first level title

text

first level title

3. The split between decentralization and centralization

Centralized exchanges have suffered a lot of anger and opposition in the encrypted world. Decentralized systems look down on centralized systems, especially centralized exchanges, and of course USDT.

As the most widely used and largest stable currency in the industry, USDT has mostly migrated to the Ethereum network, but you rarely see DeFi products that support USDT lending. USDT is like an unpopular little brother in the DeFi world. There is no face to speak of.

In my opinion, the pursuit of absolute decentralization is a kind of idealism. It is of course good to have ideals, but if you only look up at the stars and do not overlook the earth, this is very ungrounded and dangerous.

There must be ideals, but the reality cannot be ignored either. The opposition and fight between decentralization and centralization will not make decentralized products more usable and popular. The ideal is full, but the reality is very skinny.

Centralized exchanges have been scolded for so many years, but their lives are getting better and better. Now they have to enter the decentralized field to fight with you and compete for the only and rare users. What should we do?

It is not denied that decentralization has great potential, but perhaps the decentralized system should be considered more. It is said at the beginning of "The Gluing Manifesto", how to make the centralized system better help the decentralized system evolve?

If the centralized system can empower the decentralized system, the massive users and assets owned by the centralized system can guide users and assets to the decentralized system, and at the same time provide exchange users with decentralized, higher-rate How will low-cost lending and financial management services help the growth of decentralized protocols?

If Huobi uses the Compound protocol to build decentralized financial management and lending services, how much room for imagination will there be? Perhaps large exchanges will not be willing, but is it possible to start with some small exchanges that are unable to provide better services? Even if it is not successful now, is it possible to make some attempts and efforts to make the centralized and decentralized systems empower each other?

Another example is that Lu Guoning, the co-founder of Nervos and the head of the Huobi public chain development team, said in the interview that the DEX made by the exchange is much more reliable in terms of liquidity than uniswap, a community project with relatively shallow liquidity. If a big exchange stands up to do DeFi, it is very likely to solve similar attacks on bZx.

If the bZx event was a smash on Binance DEX, would the result be different?

If centralization and decentralization are two ends of a line, centralization is trying to move toward the middle.

Exchange public chains that follow pragmatism may create a new solution for empowering decentralized systems, which will bring a different spark to the encrypted world.

You will find that there is no boundary between centralization and decentralization. Users and funds of the centralized system can seamlessly switch to the decentralized system. This behavior will prompt the rapid explosion of the decentralized system, forming a huge, full of Vibrant ecology. Even if the decentralized system cannot seamlessly switch back to the centralized system, does it still matter if we already have such a huge ecosystem?

What would happen if this idea came true?

You will find that there is no boundary between centralization and decentralization. Users and funds of the centralized system can seamlessly switch to the decentralized system. This behavior will prompt the rapid explosion of the decentralized system, forming a huge, full of Vibrant ecology. Even if the decentralized system cannot seamlessly switch back to the centralized system, does it still matter if we already have such a huge ecosystem?

Binance Chain, OKChain, and Huobi Chain are the three strongest players in this field. We will wait and see whether they will eventually be able to lead the next wave of development, or just a mediocre public chain.

Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.

-END-

Disclaimer: This article is the author's independent point of view, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion. The picture comes from the Internet.