4th November, 2020, Cz: CEO of binance hosted an AMA with the crypto community, and he did justice to alot of troubling questions
Cz started first by addressing alot of opposing views in the industry: This was an issue with relatively reputable publications publishing articles that contains incorrect details and far fetched assumptions about binance,
which is very damaging to binance reputation. This is an opportunity to clear this up.
Cryptocurrency compliance is a journey, not an event. We are always on this journey to improve our compliance using refinitive, work check, elliptic, cypher trace, compliance advantage, and many others, not excluding various KYC AML tools. So binance is one of the most heavily developed compliance structures in place, and we are very active in stepping up to shape, help, and grow the regulations in our space.
We previously had a sort of implied guideline; don’t talk about regulation, but given the reason, I want to clear this up.
Having worked for regulated exchanges globally, i.e., In the US, Singapore, jersey, Uganda, UK, Korea, etc . we operate and are entirely and extremely robust.
Unfortunately, these incorrect and damaging articles do alot of damage to our reputation quite severely. And we are doing a lot of work in talking to regulators that these articles do not in any way reflect what we do. We also welcome any law enforcement agencies to reach us for any question proactively. So with that out of the way hope that addresses most of that part.
From that point points, I’m going to move on to talk about our security; we use a combination of technologies. And we also use thresholds signature extensively.
It’s similar to MULTISIG but different. In a few other key ways. For a multi-signature transaction, you can see the transaction on the blockchain. You can see three individual keys sign, or however, many individual tickets sign the transaction; you can see that on the blockchain for most of the setup.
For threshold signatures, what happens is that the private keys are never generated and never combined in one place. Different stakeholders or individuals or operators cause the parts of the private key. Then they’re never combined into one place. When we want to sign a transaction, each operator size, their little or part their part of the transaction and The result of, this signing are combined together using some algorithm, And this works with Bitcoin, Etherium and of the ERC 20 tokens, binance chains and most of the blockchains, they are a few blockchains that this technology does not cover this. Still, it does cover the majority of the topics. So, the difference here is that with this technology is very, transparent, or it’s very invisible. You can have any number of key holders; they don’t have to know who each other are, as long as, as long as they have a way to coordinate the signing, together with a tool. And from the, from the blockchain, this looks the same as a single signature transaction. So the mechanism of how that works is hidden from the public Whereas, if you use multi SIG says if you have about eight people signature out say five out of eight people can see that on the blockchain. Hence, We do use threshold signatures, very extensively, and I hope that addresses, any of the security concerns etc. that’s happening with other peers in the industry.
So moving on, the next topic is Binance Smart chain, this is a 100% ethereum compatible smart blockchain that runs solidity smart contracts, which is very cheap is much, much less expensive, like 97% cheaper to send transactions on Binance smart chain. So, we do support Defi cross-chain mechanism. We have a binance Bridge. We have the binance Canal project. And I think we are now they’re calling on the Grand Canal project, just as we have set up a 100 million US dollar investment fund the Binance smart chain accelerator. It would help grow the ecosystem, so we have already given grants to, many of them.