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Binance CEO: Ethereum and EOS Will Be Too Slow to Succeed in the Long Run

August 03, 2018

The CEO of leading cryptocurrency exchange Binance says any general smart contract platform (i.e. Ethereum, EOS) will not be fast enough to achieve success in the long run.

In a new interview with Fortune, Changpeng Zhao (“CZ”) says he believes they will be overtaken by projects that give developers tools to write blockchains for specific purposes.

Fortune reports, “the Ethereum blockchain rules the roost when it comes to hosting dApps and defining standards. But deep-pocketed competitors—notably Tezos, Eos, and Dfinity—believe they can dethrone Ethereum by offering faster and more efficient protocols. So who will win?”

CZ chose none of them because “they are too slow.”

The report continues,

“While this criticism has long been leveled at Ethereum, CZ says any blockchain designed for general smart contracts (as the current competitors are) won’t be swift enough. Instead, he thinks the existing blockchains will cede the field to more specialized ones.

CZ cited newer tools like Komodo and Tendermint that make it possible to write blockchains for specific purposes, suggesting the future will consist of numerous bespoke ledgers.”

Ethereum and other smart contract platforms are working to dramatically improve their current transaction speeds. Ethereum creator Vitalik Buterin recently said he believes it’s feasible to push the speed up to one million transactions per second.

As for the future of decentralized apps, Zhao says we’re just at the very beginning, and broader use of blockchain-based messaging, games, social networks and rating systems are on the way.

Zhao also says he’s moving ahead full steam on Binance Chain, the company’s decentralized exchange that he is pushing to launch sometime this year.

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