Binance’s long-awaited decentralized trading platform is now open to the public for testing. The world’s leading cryptocurrency exchange announced today that the new decentralized exchange (DEX) is running on its own blockchain network called Binance Chain. With Binance DEX, cryptocurrency traders manage their own private keys, instead of trusting a centralized exchange to keep them safe.
Binance plans to gather feedback from the public before providing a timeline on the commercial release of the DEX. Once it finally launches, Binance’s token, BNB, currently an ERC20 token, will be transferred to Binance Chain.
CEO Changpeng Zhao says,
“Binance Chain has near-instant transaction finality, with one-second block times. This is faster than other blockchains today.”
“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 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.”
According to Binance,
“The first use case for Binance Chain is Binance DEX, a new decentralized exchange (DEX) that aims to carry over the best features of the current Binance exchange in a decentralized setting, while also offering the benefits and security of a DEX.”
“A DEX is a great manifestation of Binance’s mission to spread the freedom of money. With a DEX, a person fully holds his crypto funds and directly plug into the network to trade without needing to provide personal information. Unlike centralized exchanges that may be subject to downtimes, a DEX is kept running by nodes distributed around the world and codes that execute functions.
However, the current DEX options face issues that hinder them from growing as widely used platforms. The user experience on existing DEX platforms is less intuitive and user-friendly compared to centralized exchanges. In addition, DEX platforms face speed and liquidity issues, which leave them lagging behind their centralized peers.
At Binance, we are fully aware of the issues that hinder DEX platforms from reaching a wider user base. And among the current and emerging DEX players in the market, we are in a unique position of knowing how to run a secure exchange platform that quickly processes billions in transactions for millions of people. From there, it’s a matter of figuring out how to replicate the successes of our market-leading centralized exchange into the decentralized realm.”
For new coins, Binance DEX commands a listing fee of about $100,000, which Zhao expects will reduce the number of scam projects on the exchange.
You can check out the testnet here.