Binance is "technically" forced to support Steem's blockchain hard fork last week, according to the CEO of the cryptocurrency exchange, Changpeng "CZ" Zhao.
In an official company statement on Sunday, CZ said that while the exchange is "very opposed to zeroing other people's resources on the blockchain", not supporting it would mean that Binance users would not be able to withdraw their tokens. steem.
This is a good thing for people who have invested or for people who have purchased crypto assets, more commonly known as bitcoin buyers.
CZ: "Steem is overly centralized"
The result of a dispute in the Steem community about the acquisition of SteemIt - the largest and most powerful application of the blockchain ecosystem - by Tron and Justin Sun, the hard fork was used as a tool to steal 64 dissidents from their tokens .
About $ 6,3 million of cryptocurrency was confiscated, with one of the stakeholders, Dan Hensley, who alone had lost about $ 1 million of the total. Banning the participation of some people "goes against the ethics of blockchain and decentralization itself," CZ said.
"The fact that this can happen on a blockchain means that it is overly centralized," he added. The fork put Binance in a "difficult" situation, he continued. Although the exchange would prefer not to support the fork, "if we do not support it (technically), no user will be able to withdraw STEEM coins".
CZ explained that Binance waited to see how other exchanges would react to the fork, stating that some soon allowed the update. He added that users also requested support for the fork.
CZ appears to be encouraging users to withdraw their steem tokens
Reading between the lines, CZ seems to encourage users to withdraw their token steems, mentioning several times in the post that supporting the fork would allow for withdrawals - of course, it could also allow for continued maintenance or trading.
“We don't want to freeze people's funds. In this case, we should allow users to withdraw their funds, regardless of whether we support this hard fork more or less willingly, ”says one of its lines.
Steem's hard fork - apparently launched with the sole purpose of nullifying the participations of key members of the community who disagree with Justin Sun's takeover of the ecosystem and how he is exercising it - followed a previous hard fork who had seen some Steem users create a new blockchain called Hive.
The new chain copied all of Steem's tokens, but not those of Sun and some of Steem's witnesses. While the tit-for-tat fork may seem like a decent retaliation, it's worth noting that the Hive tokens were actually a free copy, while the original stakes on Steem were obtained through genuine investments.
Steem's whole story suggests that decentralization is not a utopia and that the community must work collaboratively to "build a healthier decentralized ecosystem," he concluded.
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