The long expected Binance Decentralized Exchange is finally having its testnet live. After almost a year from its initial announcement, a lot of progress was made. Slow and steady, BUIDL way – the Binance way. As CZ stated a few months ago:
“We will continue to build and increase adoption, and lead the industry forward.”
And so they did. Even if the cryptocurrency market suffered a hit in 2018, Binance didn’t stop creating new exciting services such as the Binance Jersey Exchange, the Binance Charity Foundation and even a learning platform for beginners.
And now, the Binance DEX Testnet is finally live. After a successful preview shared on December 4th 2018 by the Binance DEX team, the testnet is now available for everyone willing to see how the future of decentralized exchanges look like. And as any good chain, the Binance Chain also has a Binance Chain Explorer. The CEO of Binance, Changpeng Zhao, stated:
“Binance DEX is a decentralized exchange with a decentralized network of nodes, where you hold your own private keys and manage your own wallet. With Binance DEX, we provide a different balance of security, freedom and ease-of-use, where you take more responsibility and are in more control of personal assets.”
Binance Chain – A Short Explanation
But what exactly is theBinance Chain? Binance Chain isbe a new blockchain, a peer-to-peer distributed system developed by Binance. On the Binance Chain, a secure & native marketplace can also be found. The main purpose of it is to allow the exchange of digital assets created or listed on Binance DEX.
All the transactions are recorded on the Binance Chain – validated by the network nodes – creating a fully auditable ledger of activity. Binance Coin (BNB) will be moved from being an ERC20 token to Binance Chain, becoming a native asset. Users will be able to use the Binance Chain to send, issue or receive new tokens on the blockchain. At the same time, traders would be able to propose new trading pairs to list. Changpeng Zhao further commented:
“Binance Chain has near-instant transaction finality, with one-second block times. This is faster than other blockchains today. Please note that Ethereum takes about 20 seconds and Bitcoin averages 10 minutes for network confirmations, with the possibility of rollbacks that do not occur on Binance Chain. With the core Binance Chain technology, Binance DEX can handle the same trading volume as Binance.com is handling today. This solves the issues many other decentralized exchanges face with speed and power.”
What else we know so far about Binance Decentralized Exchange
Fees are charged and shared among the validators (the block producers) to run the network. New orders won’t have any fees and larger trades would be charged more. Fees can be paid in any asset, but using BNB to pay those would results in a discount. The fee can be modified after a certain period based on a proposal-vote procedure.
There’s only 1 second block time. Also, there isn’t any 51% attack possible.
There will be no smart contracts on the Binance Chain in order to increase the performance & speed of the system.
You’ll be able to issue a new token, probably one of the best ways to launch a security token. And if we also combine this with Binance Launchpad, we might find the king of STO platforms.
Binance Chain uses a BFT based consensus mechanism to create blocks among a list of qualified block producers. In the future, it’s expected to support a PoS consensus mechanism too.
Binance’s Trust Wallet will be fully integrated with the Binance DEX. Ledger Nano S will also be accepted since day 1 and more wallets will be supported as time goes by.
Users will have full control over their private keys and easier access to decentralized applications.
Binance DEX is a step forward to realizing Binance’s vision for greater freedom of money.