Binance CEO: Security is ‘Paramount’ to Survival of Crypto Industry

ChangPeng Zhao believes the industry needs to focus on the fundamentals in order to move forward.

There’s been a lot of speculation about what the cryptocurrency industry needs to survive. Most industry talking heads speak about widespread adoption as the key to the future of the crypto industry; others cite technological innovation as the cryptosphere’s primary hope for what is to come.

However, Binance CEO ChangPeng Zhao believes that the industry must focus on something much more fundamental to successfully move forward: security.

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“I don’t think it’s a key component for mass adoption, I believe security is the fundamental pillar for the industry to continue existing. It’s paramount for crypto and blockchain’s survival,” Zhao said in an interview with Forbes on Thursday.

Binance
Binance is the world’s largest crypto exchange by volume. (Finance Magnates)

Despite Growing Popularity, the Crypto Industry is Plagued by Hacks

Indeed, despite the fact that the cryptocurrency and blockchain industry is more a part of the “mainstream” fintech world than ever before, multi-million dollar hacks have made the news almost every other month this year.

In July, $23.5 million was stolen from Bancor; $32 million were hacked from South Korean exchange Bithumb in June. Earlier this year, Japanese exchange Coincheck was robbed of more than $530 million; BitGrail, Coinrail, and others lost millions earlier this year.

Zhao believes that regulations and enforcement by governments are already helping to improve industry security standards, although the process is slow-going: “currently, the existing frameworks around the world are disparate and not really effective,” he said.

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After Security, Ease-of-Use and Real-World Application are Key

“However, there are already several players working closely with different regulators to push things forward for the sake of improving the whole sector.”

 


Zhao added that after improving security, the crypto industry must also focus on improving its ease-of-use before it can move forward. “I believe [greater ease-of use] will help crypto reach a much broader audience outside of the tech-savvy community,” he said. “I think finding real-world applications is crucial to reach that critical mass.”

“I also believe that all of these are things we will see happen in the short term,” he said, on a positive note.

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