CZ says current blockchain throughput cannot make Binance a hybrid exchange CZ says current blockchain throughput cannot make Binance a hybrid exchange
Changpeng 'CZ' Zhao believes the crypto industry needs more decentralized exchanges (DEXs).
2 min read
Updated: Jul. 18, 2023 at 9:33 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance CEO Changpeng ‘CZ’ Zhao said blockchain throughput is “not there yet” to make his firm a hybrid exchange.
CZ was responding to a community member who advised that Binance be made a hybrid exchange. According to CZ, it is easier said than done because the exchange has “to ensure fund security” and other things.
He added:
“Make sure the counterparty of the trade gets paid and no one can scam the system, ie, real-time settlements. Blockchain throughput is just not there yet.”
Calls for more DEXs
Meanwhile, CZ believes the crypto industry needs more decentralized exchanges (DEXs).
CZ noted that the industry needs more options away from the major DEXs operating in the space. His tweet commented that PancakeSwap (CAKE) v3 was now live on BNB Chain and Ethereum (ETH).
According to CZ, while Pancake has the most users, Uniswap (UNI) dominates the space regarding the total value of assets locked (TVL) on the protocol. He pointed out that this makes the space “too centralized.”
He noted that the industry needed more options and added that “DEXs are easier to use if you know how to keep your wallet secure.”
Meanwhile, the Binance CEO warned that DEXs could get hacked and their codes could be exploited.
DEX volume rising in 2023
The recent regulatory scrutiny battling centralized exchanges has seen DEX volume steadily rise throughout 2023.
According to DeFiLlama data, DEX’s trading volume has risen nearly 100% since the beginning of the year to $133.32 billion as of the end of March.
The increased volume saw that Uniswap beat U.S.-based crypto exchange Coinbase. Uniswap recorded $71.6 billion in trading volume for March, which is 45% higher than Coinbase’s $49.4 billion.
Meanwhile, DEX’s trading volume has declined by roughly $3 billion on the year-on-year metric. In March 2022, DEX recorded a total volume of $136.4 billion.
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Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Uniswap
$13.8149
Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
PancakeSwap
$2.52681
PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Designed with simplicity in mind, the Uniswap protocol provides an interface for seamless exchange of ERC20 tokens on Ethereum.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
