Binance To launch Decentralized Exchange and Public Blockchain

BinanceChain .png

Worlds largest cryptocurrency exchange giant Binance announced on Tuesday that it will launch its own “tailored blockchain” in a pursuit to build a decentralized exchange (DEX).

Binance – Hong Kong based company, which has become largest cryptocurrency exchange as measured by daily trading volume – Binance made the announcement in a blog post, explaining that Binance Chain will “mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets.”

 

“Binance was growing too quickly, and too busy to start anything else,” CEO Changpeng Zhao said on Twitter. “So, all we could do is, to just start one more Binance.”

 

The company said it made the decision to launch Binance Chain after conducting extensive research into currently-existent DEX frameworks.

Decentralized Exchanges enables users to trade crypto assets without entrusting their coins to third parties, whose centralized platforms provide hackers with lucrative attach vectors and have collectively lost more than $1 billion worth of assets to thefts during the industry’s short history.

The most well-known DEX is EtherDelta, which uses smart contrast to allow users to trade ER20 tokens, which all rub on the Ethereum blockchain. DEX platforms are not completely safe since their website serves are centralized, but they are much less vulnerable to large-scale thefts than conventional exchanges.

The reason that currently-existent DEX platforms are not more widely used is that by-and-large, they can only be used to trade assets that run on a common blockchain. Technology upgrades such as the Lightning Network (LN) promise to make cross-blockchain trades – called atomic swaps – more accessible, but these technologies are not yet production – ready.

The details on how Binance’s DEX will exactly operate are not known at the present moment, although it appears that it will exist alongside the company’s centralized exchange for the foreseeable future.

 

 “Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence,” the company said, adding that more details about Binance Chain would be released in the coming days.

 

Binance Coin (BNB), which is currently built as an ERC20 token, will be reissued as Binance Chain’s native asset, and Binance – the post says – will “transition from being a company to a community.”

Binance is an incredible success story, if you consider that it has only just launched 6 months and is already the leading cryptocurrency exchange with ambitious plans for the exciting future ahead. Let us know in the comment section below what are you through on Binance DEX and Binance Chain?

 

 

 

Source: Josiah Wilmoth, CCN.com

 

 

Bogdan Maslea