The future of the crypto industry is one step closer to its full potential, now trust and transparency is at the forefront, said Bybit CEO Ben Zhou. According to Zhou, technology will lead the way in restoring trust in crypto, and legitimate exchanges have what it takes to outperform traditional financial institutions in terms of transparency.
During a panel talk at Blockchain Life 2023 in Dubai on Monday, Zhou suggested making use of the decentralised technology’s open nature and real-time verification. The use of blockchain technology and crypto-native solutions can protect the finance sector from both established and emerging fraud risks. He pointed out that real-time, verifiable evidence of reserves can be provided by cryptocurrency exchanges, which is much more transparent than the transparency typically provided by financial institutions.
Bybit is dedicated to ensuring that user funds are handled with complete transparency and honesty. To achieve this, the company has implemented a specialized Merkle Tree system to provide real-time proof of reserves. With the use of a unique Merkle Leaf code, users can verify that their assets are being accurately recorded as liabilities in Bybit’s on-chain wallets, right down to the smallest details.
For Zhou, this kind of technology — powered by blockchain — is the real solution to the constant news of malfeasance in the crypto and wider financial sector. The new industry norm of proof of reserves can offer users more peace of mind and visibility into exchanges’ assets, and this has tilted the conventional power dynamics between the customers and financial service providers, he said.
Zhou continued by discussing the function of cryptocurrency platforms as the sector advances after a difficult 2022. Security concerns are a given, but Zhou explained why serious traders still favour CEXs: their substantial liquidity and robust infrastructure, which allows for millisecond accuracy.
Referring to institutional clients and professional traders, Zhou said that “centralized exchanges are pretty much their only choice simply because of the liquidity. And you simply can’t do high-frequency trading on a decentralized exchange (DEX) due to infrastructure limitations.” However, Zhou suggested that those interested in medium-to-long-term trades could consider DEXs as an option.
Zhou said “Our role — and that of any centralized exchange — is to be ready for mass adoption and be the gateway to Web3 when it happens. So, I still believe in the industry.”
Zhou added. “In two years, you will see signs of mass adoption. Your uncles, your aunties, your cousins will all start to use crypto.”
