Tuesday, 21 May 2019

Binance DEX is coming soon

In early February, Binance CEO Changpeng Zhao 'CZ' hosted a Twitter (AMA) livestream where he provided new details on the upcoming DEX.
While it seems counter intuitive for the number one centralized exchange to launch a DEX, CZ explained, "We want to disrupt ourselves and not wait for other people to disrupt us. So that's why we're offering Binance.com as the centralized exchange. And then we are also offering the decentralized exchange Binance Dex. So in the ideal world, we want to be in a leading position in both places. As time goes on, we will continue to improve both products and we'll let the market decide."

Binance released a video in December showing off the user interface for its DEX, which looks very similar to its existing exchange. The user experience looks good so far, and this will be key if it's to succeed. Binance's DEX is built on top of Binance Chain, and uses Binance Coin (BNB) as the native asset for the chain (Like Ether on Ethereum). Binance Chain was created by forking the Cosmos Tendermint blockchain and stripping it of any unnecessary features in order to focus on trading performance. "Cosmos had the closest thing we were looking for," CZ says. "We took Tendermint, and we made a fork out of it and chopped a lot of things out. So, in the Binance Chain, there's no smart contracts. We just have an interface for you to issue tokens, and then you can trade it. Binance Chain is a very simple chain in terms of application, but it can handle very large loads. It is our opinion that the load is more important than the features."

When CZ says the interface allows you to issue tokens, he means that new projects will be able to issue their own tokens on Binance Chain. In other words, projects will be able to effectively run an ICO, raising funds in BNB. This strategic pivot is commercially savvy, as it has the potential to strengthen BNB across multiple vectors. It will increase demand for the BNB Coin, leading to an increase in volume, liquidity and eventually value, further strengthening the use case for BNB and the entire Binance ecosystem. BNB has been one of the best performing coins in the bear market and this month it set a new all-time-high against Bitcoin.

Given all this, new users could be attracted to Binance's DEX due to the opportunity to gain access to early investment opportunities, while new projects will be incentivised to launch on the Binance Chain (after paying a fee of US$100,000) to gain access to the liquidity provided by Binance's large user base.


source: bravenewcoin.com 
Legal disclaimer: The insight, recommendations and analysis presented here are based on corporate filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. They are presented for the purposes of general information only, and all the information belongs to the original publishers. These may contain errors and we make no promises as to the accuracy or usefulness of the information we present. You should not make any investment decision based solely on what you read here.

Creamcoin Marketcap