Zhao Changpeng: The current blockchain throughput cannot make Coin An a “hybrid exchange”

On April 5th, Zhao Changpeng, CEO of Coin An, stated on social media that the current blockchain throughput cannot make Coin An a “hybrid exchange”. He stated that this is easier said than done, and that it also requires ensuring the security of funds, ensuring that the counterparty involved in the transaction receives payment, ensuring that no one can deceive the system, and ensuring real-time settlement. At the same time, Zhao Changpeng also called for more DEX in the encryption industry, such as PancakeSwap v3, which currently supports BNB Chain and Ethereum. However, Uniswap’s dominant position in TVL and other aspects will make this field “overly centralized”.

Zhao Changpeng: The current blockchain throughput cannot make Coin An a “hybrid exchange”

I. Introduction
– Introduce the topic of the article
– Provide background information about Coin An and its CEO’s statement
II. The current state of blockchain throughput
– Explain what blockchain throughput is and its current limitations
– Discuss why current throughput cannot support Coin An’s hybrid exchange vision
III. The challenges of creating a hybrid exchange
– Outline the challenges of ensuring funds security
– Discuss the importance of ensuring counterparty payment and preventing system deception
– Explain the significance of real-time settlement in a hybrid exchange
IV. The need for more DEX in the encryption industry
– Discuss the benefits of DEX to the encryption industry
– Outline PancakeSwap v3 and its support for BNB Chain and Ethereum
– Analyze Uniswap’s dominant position in TVL and other aspects
V. Conclusion
– Summarize the key points of the article
– Provide personalized insights on the future of blockchain and the encryption industry
VI. FAQs
– What is blockchain throughput?
– What is a hybrid exchange?
– What is DEX?
# On April 5th, Zhao Changpeng, CEO of Coin An’s Statement About Blockchain Throughput and Hybrid Exchange
Blockchain technology has revolutionized the world of finance and opened up new possibilities for secure and decentralized transactions. One of the most promising applications of blockchain technology is in the development of hybrid exchanges, a combination of centralized and decentralized exchanges. However, according to Zhao Changpeng, CEO of Coin An, the current blockchain throughput cannot support the development of a hybrid exchange.
Blockchain throughput refers to the maximum number of transactions that can be processed by a blockchain network in a given amount of time. The current throughput of most blockchain networks is limited, making it difficult for them to support large-scale transactions in real-time. For Coin An to create a hybrid exchange, they would need to ensure real-time settlement, which is currently not possible with the current blockchain throughput.
Creating a hybrid exchange like the one envisioned by Coin An presents several challenges. The first challenge is to ensure the security of funds. In decentralized exchanges, the responsibility of securing funds lies with the users themselves, but in a hybrid exchange, the responsibility falls on the platform. This presents a significant challenge for Coin An, as they would need to ensure that their platform is secure enough to protect users’ funds.
The second challenge is to ensure that the counterparty involved in the transaction receives payment. In a hybrid exchange, a central authority is responsible for matching orders and facilitating transactions, which presents the risk of fraud or failure to execute transactions. Coin An would need to develop a secure and reliable system to prevent such incidents from occurring.
The third challenge is to ensure that no one can deceive the system. In a decentralized exchange, the lack of a central authority makes it difficult for bad actors to manipulate the system. However, a hybrid exchange would require a central authority to facilitate transactions, making it more vulnerable to manipulation. Coin An would need to develop a system that can prevent such incidents from occurring.
Finally, a hybrid exchange like the one envisioned by Coin An would require real-time settlement. This means that transactions would need to be settled instantly, which is currently not possible with the current blockchain throughput. For Coin An to create a hybrid exchange, they would need to wait for blockchain technology to advance sufficiently to enable real-time settlement.
Despite the challenges of developing a hybrid exchange, there is a need for more decentralized exchanges (DEX) in the encryption industry. PancakeSwap v3 is one example of a successful DEX that currently supports BNB Chain and Ethereum. However, Uniswap’s dominant position in TVL and other aspects may make it difficult for other DEXs to compete.
In conclusion, the current blockchain throughput is not sufficient to support a hybrid exchange like the one envisioned by Coin An. However, there is a need for more decentralized exchanges in the encryption industry, and the development of DEX technology like PancakeSwap v3 is a step in the right direction. It remains to be seen how blockchain technology will continue to develop and whether it will eventually enable the development of a hybrid exchange like the one envisioned by Coin An.

FAQs

What is blockchain throughput?

Blockchain throughput refers to the maximum number of transactions that can be processed by a blockchain network in a given amount of time.

What is a hybrid exchange?

A hybrid exchange is a combination of centralized and decentralized exchanges, allowing for both the benefits of centralized exchanges such as quick trades and the benefits of decentralized exchanges, such as security.

What is DEX?

DEX or decentralized exchange is a platform that operates on the blockchain network where users can trade cryptocurrencies and other digital assets without the need for an intermediary.