Binance now developing a decentralized exchange
The Binance team aims to make history with the creation of a new decentralized cryptocurrency exchange.
Having succeeded in quickly becoming one of the leading exchanges in the industry, Binance is now setting its sights on tackling some of the core issues of the emerging technology.
A primary selling point of the cryptocurrency movement is its decentralized nature – each network is distributed between separate computers in various locations across the world, and with each computer keeping a copy of every new transaction in its ledger, the technology is designed to make it impossible to manipulate.
And yet the current gatekeepers to the free exchange of these cryptocurrencies are centralized exchanges, all subject to the threat of hacking. In fact, the fear of getting cryptocurrency stolen is predominantly attributable to these centralized exchanges.
While the vast majority of cryptocurrency exchanges on the market today are centralized in nature, decentralized exchanges do exist – though the chief complaints leveled against them have revolved around user-friendliness and liquidity.
To address those very issues and take decentralized, also known as peer-to-peer, exchanges to the next level, Binance today announced plans for a decentralized exchange of its own, called Binance Chain. Instead of creating a coin to work on a new blockchain, as many other cryptocurrency projects have done, Binance will now create a blockchain for its Binance Coin (BNB).
Binance Chain is intended to be a public blockchain for trading blockchain assets, and it will be designed with performance, ease of use and liquidity in mind.
“We stand here today because we believe that blockchain technology will change the world. In the face of adversity, we have always elected to tackle issues head-on instead of retreating,” the Binance team wrote in its announcement. “… The real enemy is often ourselves. We need to continuously improve and disrupt ourselves. We need to work together to create a better version of ourselves. The futures belongs to the new us, together.”
Having written that, Binance also noted that Binance Chain is likely to become complementary and interdependent with the current centralized exchange and others like it.
Learn more about the differences between the various types of cryptocurrency exchanges in our guide.
Disclosure: At the time of writing, the author holds XRP, CND, ANT and DRGN, and actively trades BTC and ETH.
- Cryptocurrency: Why all eyes are on eToro’s USA launch
- Bitcoin weekly price analysis 28 August: Token’s value soars in face of ETF rejections
- Most global companies are slow to adopt blockchain technology: PwC survey
- Leading universities are offering a growing number of crypto courses: Coinbase
- Cryptocurrency: Value-making coins vs value-giving coins