Bybit CEO Ben Zhou shared his thoughts on the future of crypto at a panel discussion during Blockchain Life 2023 in Dubai.
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.
Speaking as part of a panel discussion at Blockchain Life 2023 in Dubai on Monday, Zhou proposed leveraging the open nature and real-time verification that decentralised technology offers. Blockchain is part of the solution, and crypto-native solutions can help armour the financial industry against traditional and new forms of fraud risk. He noted that crypto exchanges are able to offer real-time, verifiable proof of reserves, which is far and above the transparency traditionally offered by financial institutions.
Bybit has implemented real-time proof of reserves with a purpose-built Merkle Tree to manage user funds with transparency and integrity. Users can use their Merkle Leaf code to check that their assets are recorded as liabilities in Bybit’s on-chain wallets.
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. To himn, 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.
Zhou went on to talk about the role of crypto exchanges as the industry moves forward from a challenging 2022. While security considerations are a given, Zhou revealed why CEXs are still preferred by serious traders: deep liquidity and powerful infrastructure with millisecond precision.
Referring to institutional clients and professional traders, Zhou said that “centralised exchanges are pretty much their only choice simply because of the liquidity. And you simply can’t do high frequency trading on a decentralised exchange (DEX) due to infrastructure limitations.” However, Zhou suggested that those interested in medium-to-long term trades could consider DEXs as an option.
“Our role — and that of any centralised 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,” he said.
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