Founder of ShapeShift: Centralized intermediaries are the cause of encryption failure in 2022

According to reports, Erik Voorhees, the founder of ShapeShift, a decentralized trading platform, stated on DC Blockchain that in terms of negative news, the past year was the “worst” year in the history of encryption, but most of the problems were caused by the underlying technology of centralized intermediaries rather than cryptocurrencies.

Interpretation of this information:

Erik Voorhees, the founder of ShapeShift, opined at the DC Blockchain Summit that the previous year, 2018, was the toughest year for cryptocurrencies due to the deluge of negative news that surrounded the industry. Despite this, he observed that the major difficulty facing the industry is not cryptocurrencies themselves, but rather the problems caused by centralized intermediaries employed in the underlying technology.

In recent times, the sale of cryptocurrency to the government, loss of funds, and regulatory measures by some countries have negatively affected prices and reputations. While these challenges are harming the ecosystem, Voorhees believes that they are not necessarily the core problem. Centralized intermediaries, such as exchanges, have played a prominent role in amplifying these problems. These intermediaries do not only represent a middleman to cryptocurrency trades, but they also hold the funds of numerous individuals. The concerns associated with centralized intermediaries include a lack of transparency and security, which can result in fraudulent activities, insider trading or theft.

This is the reason why the decentralized trading platform, ShapeShift, was created. The platform was established to create an ecosystem where individuals can buy and sell cryptocurrency without the dangers associated with centralized intermediaries. This approach ensures individuals’ financial privacy and protects the money of the traders from being stolen.

The comments by Erik Voorhees at the DC Blockchain Summit serve as a reminder of the underlying issues that beset the cryptocurrency industry. Decentralization represents an essential aspect of the ecosystem, as it ensures that there is no single point of failure that can halt trading transactions or compromise the security of funds. In addition to this, decentralization speaks to the transparency, security and resilience of the industry.

To conclude, it is noteworthy how the past year has proved to be an eye-opener not only for market participants but also for entrepreneurs like Voorhees. This demonstrated the significance of the development of decentralized technologies and the creation of similar ecosystems that ensure transparency, trust, and privacy.