dYdX Foundation CEO claims that the industry is currently moving toward "decentralized disruption."
Charles d’Haussy, CEO of the dYdX Foundation, predicts that centralized exchanges will eventually serve as gateways to decentralized finance (DeFi) as the cryptocurrency industry matures and evolves.
In an advanced move toward complete decentralization, the dYdX Foundation has initiated a public testnet for its most recent version, v4.
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The organization, an independent non-profit established to support the dYdX protocol, states that the early deployment of the testnet sets dYdX well ahead of its anticipated v4 mainnet launch.
It is worth noting that the existing live version of dYdX is viewed as only semi-decentralized. Although it does not take custody of any user assets, it utilizes a centralized order book and matching system. The forthcoming version is predicted to rectify this situation.
Speaking at the Ethereum Community Conference in Paris, d'Haussy addressed the subject of complete decentralization and its implications for centralized providers of perpetuals. He argued:
They are not the competitors of the dYdX protocol, honestly. I think they do their job well. They have been supporting the market early on. We should not forget that perpetuals were invented by BitMex, which is a centralized entity.
In d’Haussy's view, the present condition of the industry represents a transitional phase moving toward "decentralized disruption."
The CEO also noted that centralized exchanges could become gateways to decentralized exchanges in the coming months or years.
I can definitely imagine a world where maybe a centralized entity with KYC <Know Your Customer> and risk profiles on customers <...> will offer spots trading in-house. Maybe they will offer their customers a better experience <compared> to DeFi, with a more simple integration and connecting from the centralized exchange to DeFi.
In essence, d'Haussy's vision involves centralized entities operating like traditional multi-service financial banking institutions. In this view, these entities would initially establish a core business and then supplement it with related services.
He described this potential development as "a positive for the ecosystem," as it would empower individuals to embrace crypto services in a way that suits them best.
People want to consume things in different ways. And if it’s easier for you or if you feel more comfortable with one entity helping you to manage your crypto experience, and this entity provides you access to DeFi, I think that’s great.
d’Haussy’s perspective on the future of DeFi suggests a harmonious coexistence and potential integration between decentralized and centralized exchanges. His vision highlights the potential for the crypto ecosystem to adapt and evolve to meet the diverse needs and preferences of its users.
