Changpeng Zhao, CEO of Binance, explains why businesses must have a decentralized architecture amid the global pandemic.
No one knows what will happen in the world after the COVID-19 pandemic has ended. Right now, it is only possible to arrive at a series of conjectures about today’s information. This is precisely what the CEO of Binance has done, stating that decentralization is essential.
In recent days, Binance published on its blog an article written by Changpeng Zhao, better known as CZ, where he gives his opinion on the post-pandemic world.
The year 2020 has proven to be like a terrifying roller coaster, which has imposed challenges and obstacles, in addition to the need to change and revolutionize.
CZ focuses on the changes made by companies, which have reshape their organizations to implement remote work and face the crisis.
However, although the COVID-19 pandemic affected the entire humanity, CZ believes that decentralized organizations have had a greater ability to cope with the current harsh business environment.
Decentralization as the Solution
Changpeng Zhao notes that his development team devised a decentralized solution based on microservices. According to the CEO, this has offered Binance the opportunity to become more flexible and allow developers to work from any place in the world.
CZ explains that this is possible because multiple teams can work on different parts of the software independently while communicating through APIs.
In this sense, this geographical decentralization contributes to the Binance team’s having much faster and autonomous reactions. Therefore, this solution allows the team to work remotely and independently, thus reducing friction costs.
User Protection
Binance uses a cloud-based server solution, which enables it to deploy services closer to local users. This reduces latency and enables users to enjoy a more responsive user experience.
Therefore, the cryptocurrency exchange can manage thousands of servers worldwide from consolidated interfaces. This allows the platform to provide a high- quality service, where the main priorities are security and users.
Binance uses an internal system that follows a zero trust model to ensure security when it comes to identity verification. In other words, no internal or external user is reliable unless his or her identity is verified
Organizational Stability and Decentralization
Although security is very important, CZ says that it is important to increase the resistance of the system to improve and maintain excellent user experience.
One of the external elements that can put the user experience at risk is high traffic. For that reason, Binance monitors the flow of users and responds to the influx by adjusting the architecture of the system automatically.
Finally, CZ explains that Binance has been a decentralized organization from its very design.
In other words, CZ explains that each of his employees does his or her activities autonomously. Therefore, they make quick decisions when necessary, thus reducing so-called “bottlenecks”.
Therefore, most employees own and lead their projects, set their own goals, and continually find new ways to innovate on existing solutions.
This idea probably scares many entrepreneurs, but Binance has managed to achieve greater efficiency and speed in their projects, according to CZ.
By Alexander Salazar
