Cryptocurrency exchanges are moving away from the Ethereum network … why?

Cryptocurrency exchanges are moving away from the Ethereum network … why?

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Answer Cryptocurrency exchanges are moving away from the Ethereum network … why?

In the past few years, we have noticed that most centralized cryptocurrency exchanges have relied on the Ethereum network to include new cryptocurrencies, due to the ease of adding them and the efficiency of the network.. We also find major platforms such as Binance and KuCoin have the ability to add cryptocurrencies built on other networks such as NEP5 coins .

In addition, we find that most of the decentralized exchanges are dedicated to the Ethereum network and compatible with ERC-20 such as the IDEX platform. This has upset many of the cryptocurrency community who want to see the diversity of blockchain networks in the market and learn about the capabilities of other projects.

Read:Ethereum Trading Volume Approaching Bitcoin… Will Ethereum Lead the Next Bull Run?

The role of trading platforms

There are a lot of cryptocurrency exchanges out there who are bothered by this, and some of them are going to build their own public network. Binance is now known to be building a decentralized platform, but it is not the only one as OKEx and Huobi are also doing the same.

This means that their public networks will allow them to be independent without having to worry about the role of the Ethereum network in influencing their decisions.

On the other hand, some platforms do not want to promote the Ethereum network and help its development by supporting ERC-20 coins, but rather want to look for their own interest only.

The most important advantage of developing platforms for their own public network is the absolute independence to meet any specific needs that fit the platform only, while the Ethereum network forces the platforms to deal according to what they offer them.

Read:Decentralized trading giant Uniswap grabs 50% of Polygon market share

Many see that moving away from the Ethereum network is an essential step in order to prevent monopoly in the industry. The addition of more new public networks means more diversity for traders and demonstrates the power and capabilities of the blockchain at a larger scale.

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