Crypto Exchange Binance Is Launching Its Own Blockchain – Will It Be the Next Ethereum?
Binance, the world’s largest cryptocurrency exchange by volume, is launching its own blockchain in early 2019.
In a new post on Medium, Binance says it will migrate its digital asset Binance Coin (BNB) from the Ethereum network to its proprietary blockchain – Binance Chain. Binance says “details on when Binance Coin will transition from ERC20 token to native Binance Chain asset will be revealed soon.”
Binance says the new blockchain will allow millions of entrepreneurs and developers worldwide to issue tokens.
#Binance is pushing for blockchain adoption and doing many things to help advancement of the industry. E.g. we will have the Binance chain ready in the coming months, on which millions of projects can easily issue tokens. @cz_binance @ForbesAsia #ForbesBlockchain pic.twitter.com/0pc0r1lXd2
— Binance (@binance) December 4, 2018
Binance says the new blockchain will also support its upcoming decentralized exchange Binance DEX. Since Binance Chain will do more than just issue tokens, the new blockchain may be designed as a fully-fledged smart contract platform like Ethereum.
Although Ethereum developers have just agreed on a launch date for its upcoming system-wide upgrade that will address scalability and other critical issues, Binance CEO Changpeng Zhao believes that Ethereum, as well as many other leading blockchains that support smart contracts, are simply too slow for mass adoption.
Reports Fortune in an August interview with Zhao,
“While this criticism has long been leveled at Ethereum, CZ says any blockchain designed for general smart contracts (as the current competitors are) won’t be swift enough.”
Zhao gives some indication of how he sees the world of distributed ledgers evolving: as a future with “numerous bespoke ledgers,” instead of a single, massive computing platform like Ethereum.
By building its own blockchain, Binance aims to fulfill its broad mission of creating a decentralized financial system while expanding its existing ecosystem, which includes its venture capital arm Binance Labs, its educational platform Binance Academy and multiple cryptocurrency exchanges worldwide.
Binance DEX is also set to launch in early 2019. The company published a new video showcasing the DEX, which includes giving users the option to forego private keys in exchange for a 24-word mnemonic seed phrase. The DEX also features a “blockchain explorer,” where users can search individual blocks, transactions, addresses or order IDs.
Binance says its focus is on complete security with a constant focus on decentralization.
“User funds on the DEX will be secured with decentralized wallet applications like Trust Wallet, which has a server-free infrastructure that stores private keys only on the user’s device, meaning only users have access to their funds.”
Binance DEX will be far from the only option for decentralized exchanges as companies such as NEO, Huobi, BitBay and more will create a healthy amount of competition.