Patrick Hillman, the Chief Strategy Officer (CSO) of Binance, has stated that centralized cryptocurrency exchanges (CEXs) may become obsolete within the next decade as the cryptocurrency business transitions toward decentralized finance (DeFi).
As a result of the FTX incident, centralized exchanges throughout the world are reportedly carrying out a “proof of reserves” to regain their customers’ trust. This was reported by CoinDesk on February 2 (local time). Cryptocurrency exchanges can demonstrate that they do, in fact, have reserves by using something called “proof of reserves.”
Hillman CSO found that the reserve proofs carried out by centralized exchanges take up an excessive amount of time. According to Hillman, “Proof of reserves will take a significant amount of time because it includes numerous procedures, one of which is the requirement to bring in a third-party auditor.” He explained that larger businesses, like Binance in particular, require additional time.
Hillman CSO maintained that Binance is convinced that proof of reserves may take a long period. Hillman CSO said this repeatedly. He explained that Binance offers Merkle Tree analysis to its exchange customers so that the consumers can independently check their assets without the necessity for the companies to publicly disclose their assets.
