Bybit CEO – Crypto Sets Higher Standards for Proof of Reserves for Traditional Finance
Key takeaways
- Bybit CEO Ben Zhou optimistic about technology restoring trust in crypto
- Transparency and openness crucial for industry's success, with blockchain offering real-time verification and proof of reserves
- Centralized exchanges remain preferred option for serious crypto users due to deep liquidity and powerful infrastructure
Bybit CEO, Ben Zhou, has expressed his optimism that technology will help to restore trust in crypto. He also expressed his conviction that trust and transparency, which are now prioritized in the industry, will help crypto attain its full potential.
Contributing during a panel discussion at Blockchain Life 2023, in Dubai, Zhou suggested capitalizing on the major benefits blockchain offers, including real-time verification and openness. In his opinion, Blockchain offers solutions to the many issues bedeviling the traditional financial industry, including fraud risk. He stressed that since crypto exchanges can offer real-time, verifiable proof of reserves, they invariably offer more transparency than traditional financial institutions.
Bybit and Maximum Transparency
The Bybit Chief executive provided insight into how Bybit focuses on managing users' funds with utmost transparency and integrity. The company offers real-time proof of reserves, thanks to its purpose-built Merkle Tree. Users can individually use their Merkle Leaf code to confirm that their assets and related details are comprehensively recorded in Bybit’s on-chain wallets.
Explaining the potential impact of blockchain technology, Zhou insisted that technology can put an end to the constant news of malfeasance within the crypto and the wider financial sector. Proof of reserves, which is fast becoming the industry norm, gives users peace of mind. It also offers insight into exchanges' assets, and this helps to tilt the conventional power dynamics between financial service providers and their users.
The Role of Crypto Exchanges
Speaking further, the Bybit CEO commented on the roles crypto exchanges can play, even as the industry continues to recover from a challenging 2022. He insisted that centralized exchanges (CEXs) will continue to serve as the preferred option for the majority of serious crypto users. According to him, this is because of deep liquidity and powerful infrastructure that offer millisecond precision.
Zhou also narrowed it down to institutional clients and professional traders, stressing that centralized exchanges are pretty much their only choice because of the liquidity. He noted that users can't do high-frequency trading on a decentralized exchange (DEX) because of infrastructure limitations. He opined that users who are interested in medium-to-long-term trades may find DEXs as a viable option.
In his words:
“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."
