Patrick Hillman, chief strategy officer (CSO) of Binance, said the cryptocurrency centralization exchange (CEX) could disappear within 10 years as the cryptocurrency market moves to decentralized finance (DeFi)
According to CoinDesk on the 2nd (local time), global centralization exchanges are conducting “proof of reserves” to secure customer trust after the FTX crisis. Proof of reserves is a method of proving whether the cryptocurrency exchange actually has reserves.
Hillman CSO analyzed that proving reserves on the central currency exchange takes too much time. Hillman CSO said, “Proof of reserves will take a long time because it has to go through several stages, including recruiting a third-party audit agency.” In particular, he explained that large companies such as Binance need more time.
Hillman CSO argued that Binance is confident even if it takes a long time to prove its reserves. He explained that Binance provides Merkle Tree analysis so that customers on the exchange can verify their assets on their own without disclosing their assets.