Binance Chain is the blockchain product owned and run by Binance, the cryptocurrency exchange platform
Binance, the world’s largest cryptocurrency exchange platform in terms of trading volume, is launching its own blockchain called Binance Chain. In March 2018, the exchange announced it will be launching Binance Chain as a way of transferring and trading blockchain assets.
The Binance-backed blockchain aims to give users a basis for creating new ICO tokens and cryptocurrencies. It will run alongside their current exchange as well as a new decentralised exchange. Instead of running the Binance token on the Ethereum blockchain, Binance Chain will have a native token running on its own blockchain.
The technology has been designed to facilitate the evolution of financial exchanges and maintain the status of the Binance platform as the largest crypto exchange. Binance Chain will be a public blockchain that will focus on developing the process of transferring and trading blockchain assets. It also aims to provide new possibilities for the future flow of these blockchain assets. The blockchain will also focus on creating a smooth ease-of-use and liquidity performance for users.
As well as Binance Chain, the company is also launching Binance DEX, a decentralised exchange to run alongside the blockchain. Binance CEO Changpeng ‘CZ’ Zhao also confirmed that the exchange would offer a “simple UX”, full custody of coins for users, and “instant transactions” with one-second block time.
Binance revealed this news via a video tutorial on YouTube, showing users a preview of their upcoming decentralised exchange. In a tweet from CZ, he stated Binance DEX will have a one-second block time, meaning it will offer instant transactions.
Binance says the user funds of Binance DEX will be “secured with decentralised wallet applications like Trust Wallet”. These types of wallets have server-free infrastructures that allow users to store private keys on their personal devices. The company’s main competitors in this area include NEO, BitBay, and Huobi.
How could it drive the adoption of blockchain?
The exchange platform aims to push for the mass adoption of blockchain whilst doing many things to help the blockchain and cryptocurrency space. Since Binance Chain will be doing more than just issuing tokens, it will be created as a fully-fledged smart contract platform, like Ethereum.
Many say Ethereum is too slow for mass adoption, but Changpeng Zhao believes the new Binance blockchain will be able to address all the issues Ethereum has, including speed and scalability. Because the new Binance Chain will be a decentralised platform, it is going to provide more transparency in terms of customer data. This means it will be less open to hackers than traditional centralised exchanges.
Binance’s goal is to fulfill their extensive mission of creating a fully decentralised system whilst expanding its ecosystem to include more exchanges globally. It also wants to include its educational academy and venture capital arm, Binance Labs. According to Binance, the blockchain will allow developers and entrepreneurs to issue tokens from all around the world.
Binance, the world’s largest cryptocurrency exchange platform in terms of trading volume, is […]