Centralized crypto exchanges could disappear within the following decade if decentralized financial (Defi) aggregators take over, according to 1 inch co-founder Sergej Kunz.
In an interview with Cointelegraph on Token2049 in Singapore Kunz predicted that exchanges slowly switch to frontends for decentralized exchanges (DEXS). “I think it will take five to 10 years,” he said.
Kunz argued that, although centralized exchanges are isolated markets, 1 inch and his aggregator act as a global liquidity hub. His comments came when 1inch announced a deal with Major US Crypto Exchange Coinbase, which integrated the service to provide DEX trade to its users.
Kunz said that investments in Onchain systems by centralized fairs show their understanding that the technology on which they will rely on “will not remain forever because you have decentralized exchanges and digitized finances.”
“They don’t want to miss the train and stay behind, and they assume our technology, because it is something that will authorize the entire financial sector from our point of view,” he said.
Sergej Kunz on Token2049. Source: Cointelegraph
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1 inch pivots to infrastructure provider
The report follows this week’s announcement with 1 inch that it has changed its business model to become a Defi infrastructure provider, aimed at offering access to other companies. With the transition, 1inch wants to facilitate the approval of non-right swaps through important centralized exchanges and portfolios-in particular the mention of Binance, Coinbase, ledger, metamask and trust wallet in the announcement.
Kunz said that the protocol has united its products in a single application programming interface (API) for developers. He noted that most of the activities of the platform now come via API integrations instead of its own front -end, a trend that has held for about a year.
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1 inch continues to gamble on expansion
In August, 1 inch rolled out on intention-based cross waps to connect Solana and Ethereum virtual machine-based networks, offering maximum extremable value protection. In June, 1inch used an update for its algorithm for discovering price route, with a claim to 6.5% better swapt rates.
About a year ago, 1inch also introduced a function with which users can change their digital assets crosses while retaining the self-insurance policy on the assets.
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