Binance, the largest exchange in the world by means of volume, has announced its plan for launching a public blockchain, the Binance Chain.
It will act as a facilitator for the decentralized exchange that they are looking to launch. No official timeline has been mentioned.
Some of the key features of Binance Chain would be:
- To primarily facilitate the movement of digital assets on the blockchain through the decentralized exchange.
- Focus will be on providing the key benefits of a centralized exchange such as performance, ease of use and liquidity. The 3 key disadvantages of using a dex right now.
No carrot for BNB holders ?
No, the Binance team hasn’t forgotten their community. The BNB token will be upgraded to act as a native token for the blockchain as well.
It will be interesting to see how they can integrate the BNB token used for a centralized exchange for a decentralized exchange as well.
They have also mentioned that they are looking to transform from a company to a community. I bet the BNB token holders will be eager to know more about those developments.
Although the Binance team was late to the game, they have managed to overcome their older, entrenched competitors like Bittrex, Poloniex etc through sheer technical know how and security, ability to scale volumes by adding trending coins and providing incentives for trade and voting through their BNB token, which I believe, was a masterstroke. Not to mention, very good customer service.
It will be interesting to see how they will tackle the concept of a dex. The Binance team has demonstrated their ability to build a great exchange and build a profitable business out of it. They also have been smart enough to enter the game at a time when a lot of research and attempts (Eg. IDEX, Airswap etc) are being made to create an exchange with the perfect combination of decentralization, ease of use and liquidity.
But where I see the bigger game is their plan to launch a tailored blockchain for the dex and the questions regarding their vision for Binance Chain:
How do they plan to make the inter operability between the Binance Chain and blockchains like Bitcoin, Ethereum etc happen ?
What are the other features that they are looking to integrate in the future ? Do they have plans to add more functionalities and be an Ethereum rival ?
What are your thoughts about Binance’s announcement ? Share your thoughts below.
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