Binance now developing a decentralized exchange |

Binance now developing a decentralized exchange

Ryan Brinks 13 March 2018 NEWS

Binance has announced plans for 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.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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