cryptocurrency-event-2018

Centralized Exchanges Can “Go Burn In Hell As Much As Possible” According to Vitalik Buterin

Vitalik Buterin, the creator of Ethereum, is by no means an uncontroversial figure. He has stated plenty of somewhat controversial affirms, especially on Twitter. Now, he has recently told the centralized cryptocurrency exchanges to “go burn in hell” during an interview with Jon Evans.

He was surprisingly balanced for someone telling people to go to hell, actually, and stated multiple times that it is hard to live in a world in which everything is either centralized or decentralized.

Buterin Talks About Bitmain And Bitcoin, Doesn’t Want Ethereum To Be Centralized

According to the creator of Ethereum, when GHash had 51% in 2013 everybody freaked out and now people are not talking about it as Bitmain is almost getting 51% of the Bitcoin hash rate. He believes that this level of centralization could cause 51% attacks and other issues due to concentration. Also, even events like the Sichuan flood, which is happening right in China, could affect mining.

He believes that Ethereum should be as decentralized as possible but he’s also always open to the community and does not want to create hard divides in which you are either “on the inside and you’re on the outside”.

One the main concerns with Ethereum for the developer is that the only way to truly decentralize Ethereum is by using private keys to manage your own wallet. Sending ETH is not really complicated, but what happens if you lose your keys or your password? With a hard method for authentication it is really hard to become really mainstream.

According to the developer, you simply need to have means of validation if you are serious about taking a crypto to the mainstream because there has to be a way for people who lose their keys as this will eventually happen in most scenarios.

Centralized Exchanges Should Burn In Hell

Buterin definitely hates centralized cryptocurrency exchanges. He does not understand why people have to pay so much to have their tokens listed there and believe that they only serve as an interface between the fiat world and cryptos. The fiat world, according to him, only has centralized gateways.

He sees more potential in decentralized exchanges in which you do not even need to log in at all. By using them, you can easily trade without even registering or logging. Because of this, transferring tokens will be easier on them.

Failed Companies Based On The Ethereum Blockchain

When talking about people that started blockchain projects on Ethereum, Buterin stated that a lot of them do not go very far at all and that many are simply not decentralized, they may claim to be, but they are simply not.

He cited an example in which some companies made seven nodes but all of them were controlled by the same company. If you had a public network instead, you will have 16,000 computers. He does understand the need for centralization in some cases, though, as some industries simply have regulations and you cannot do anything about it, so you have to centralize a bit.

He states that even Plasma chains are better than making a 100% centralized blockchain, though. You get the efficiency of centralization without the pitfalls of having everything in a centralized server.

To finish the interview, the developer talked about culture. He stated that Bitcoin is too divisive and that everybody wants something in the network and that much of the culture around a project comes from the early people who helped to create the community.

Because of this, Buterin believes that he deliberately needs to make an effort to promote the right values if he wants to assure the future of the Ethereum network and attract the right people to the community. He finished by saying that “we make a culture that is hostile to people who take themselves too seriously”.

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