“Everything should work in such a way that people can figure out what’s going on without needing an advanced degree,” Vitalik Buterin
Cryptocurrency exchanges should not only transform the financial system into a decentralized format, but also make it accessible and safe for people around the world. Ethereum founder Vitalik Buterin shared this opinion in interview publication CNBC.
Some crypto exchanges already offer a convenient and secure interface for purchasing cryptocurrency. We have compiled a list of cryptocurrency exchanges that are suitable for both experienced traders and beginners.
Vitalik Buterin criticizes crypto exchanges
In an interview with the publication, Buterin criticized centralized platforms, which, in his opinion, occupy a disproportionately large share of the market and make life difficult for small decentralized financial projects (DeFi), which belong to the future.
Answering the question about what will help attract ordinary people to the crypto industry, he identified four factors:
Affordable price: transaction costs should be low so that people do not associate crypto trading exclusively with institutions or professional investors.
Reliability: Frequent technical failures are extremely undesirable; they spoil the impression and disappoint new adherents.
Ease of use: the system should be intuitive, accessible to anyone with any level of technical knowledge, not just PhDs.
Safety: high vulnerability to hacking and hacker attacks, as well as the prospect of losing all assets if you lose your keys, if still scares many people away.
“We need to make sure that you don’t have to pay more than 5 cents for a transaction on the Ethereum network, so that the user experience is not intimidating, so that there are no random failures in 2.3% of cases, so that people can figure out what is happening and for this they do not need a scientist degree”.
Vitalik Buterin, CNBC interview
Earlier this month, Vitalik Buterin identified the main problem with Ethereum, and it is not the high cost of transactions.
We don’t need CBDC
Vitalik Buterin doubts that central bank digital currencies (CBDCs) can offer a real alternative to traditional payment systems.
“We’re getting systems that aren’t really that much better than what we already have. In essence, CBDC is just a new shell for the existing banking system,” he explained.
Vitalik Buterin, CNBC interview
And this is not the only problem with CBDC. According to the founder of Ethereum, CBDCs make monetary relationships even less private, breaking down the barriers that currently protect people from corporate and government intrusion into their personal space.
The future is “proof of stake”
From Buterin’s point of view, the proof-of-stake consensus algorithm makes the network safer, so it has an advantage over alternatives.
“Proof-of-stake is actually easier to anonymize and harder to disable than proof-of-work,” he said.
Vitalik Buterin, CNBC interview
At the same time, he criticized the “proof-of-work” algorithm for the fact that it requires a large amount of equipment and electricity. The energy costs of running such protocols are often comparable to the energy consumption of a small country.
According to Buterin, these characteristics help centralized authorities easily detect proof-of-work systems.
Let us recall that earlier Vitalik Buterin named three factors without which Ethereum, in his opinion, would be doomed to failure.
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2023-09-23 11:27:00
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