Binance, the leading crypto exchange in the world with over $1.5 billion in daily volume, has announced Binance Chain, a new public blockchain that will facilitate the creation of a new decentralized exchange.
The company announced some details of this tailored blockchain, which it calls as the first step in the development of a DEX, or decentralized exchange.
With regulatory pressure on blockchain ecosystems increasing, this move towards a decentralized environment is an aggressive move from Binance that is likely to cements its place as the leading exchange platform.
Binance CEO commented on the occasion:
Binance was growing too quickly, and too busy to start anything else. So, all we could do is, to just start one more Binance. https://t.co/r5RjPNyrDq
— CZ (not giving crypto away) (@cz_binance) March 13, 2018
The current cryptocurrency market obligates traders to entrust their capital with a third-party platform in order to trade — even as the cryptocurrencies themselves are mostly decentralized. Centralized exchanges are vulnerable to hacking and thefts, which sadly still are a habitual occurrence.
A DEX, on the other hand, does not require users to hand over control of their cryptocurrencies to trading platforms, essentially allowing users to trade directly with each other in a peer to peer fashion.
As you can imagine, a number of decentralized exchanges are currently active, but they are not widely accessible to users and suffer from low liquidity. Most being limited to specific blockchains that allow users to trade Ether tokens, for instance.
Blockchain interoperability is the biggest issue facing these decentralized exchanges.
The Binance team, remarkably, has envisioned a hybrid exchange ecosystem made up of both centralized and decentralized elements, with focus on performance, ease of use and liquidity — the three most pressing concerns.
And while the company is yet to reveal information on the technology behind the Binance DEX, it is fairly certain that this new decentralized exchange will facilitate cross-chain trading.
Perhaps even support all 280 or so crypto tokens that the main Binance exchange supports.
That would be really something!