Binance Launches Decentralized Crypto Exchange
After months of teasing and anticipation, Binance has finally launched its own cryptocurrency exchange that operates on their own blockchain called Binance Chain.
At the time of writing this news, the platform is currently in the testnet phase, which means that users can try out the new platform should they choose. Traders will be able to create a wallet and exchange their tokens through this platform.
“Binance DEX is a decentralized exchange with a decentralized network of nodes, where you hold your own private keys and manager 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.”
The decentralized exchange (DEX) is different from Binance’s flagship offering which stores users’ private keys independently. The new DEX will enable users t to store their private keys independently, which will allow the retention of coin ownership even in the case of an exchange hack.
Zhao said that the DEX is built to support the existing wallet by Binance and it can be used with hardware wallet to further increase security. The shortcoming of a DEX is that in case you forget your password or credentials, Binance will not be able to reset it.
You can take the Binance DEX for a spin by following this link. To understand the technical aspects of this project you can visit the Binance Chain blockchain explorer by following this link. The launch of DEX represents a major shift as Binance is moving away from Ethereum’s blockchain towards its own.
“Binance Chain has near-instant transaction finality, with one-second block times. This is faster than other blockchains today. 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.”
Zhao said that the Binance Chain is based on Tendermint protocol and is running a Delegated-Proof-of-Stake (DPoS) consensus algorithm.