Binance to Launch Its Own Blockchain for Exchange, BNB Token
Introducing Binance Chain
Binance just announced plans for its own blockchain, a public chain curated specifically for the exchange.
“In the world of blockchain, we have always believed that actions speak louder than words,” Binance explains in a March 13th blog post. “Thus, a tailored blockchain is the best way to communicate ourselves.”
The Binance team has conducted extensive research on decentralized exchange infrastructure, the post reveals, leading them to believe that “significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed.”
Thus, the concept for Binance Chain was born. The public blockchain “will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets.” Further, Binance hopes that the project will provide users with liquidity, an easy-to-use platform, and superior performance compared to other exchanges. As one might expect, Binance’s BNB coin will serve as the native currency for the blockchain, but the team will first have to upgrade BNB to migrate it to the new network.
Binance was growing too quickly, and too busy to start anything else. So, all we could do is, to just start one more Binance. https://t.co/r5RjPNyrDq
— CZ (not giving crypto away) (@cz_binance) March 13, 2018
While Binance conveys that decentralized exchanges are the impetus for Binance Chain, the exchange also believes that, in the future, decentralized and centralized exchanges alike will “co-exist” and complement one another. As such, it’s unclear whether or not Binance intends to migrate to a strictly decentralized exchange or implement some hybrid model, for the post does not explicitly state that the exchange intends to adopt a fully decentralized system. Moreover, if Binance does make the move to a decentralized platform, it’s unknown how the exchange plans to execute this infrastructural overhaul and if it will run like an Ethereum-powered DEX via smart contracts.
These developments come just a week after Binance users were hit by a mass scale phishing attack, one that the Binance team caught in time before the hackers could make off with funds. If the exchange implements a decentralized framework, that will give a defense buff to its already impressively airtight security system. As developments on Binance Chain continue, expect to see updates that will flesh out the logistics of the coming changes.
With the prices of Bitcoin (BTC) and other altcoins (alternative cryptocurrencies) surging as cryptos become more mainstream,…
Editor’s note: Bitcoin’s price has since broken a new all-time high of $22.3k. This article is still…
As more people enter the cryptocurrency ecosystem than ever, it’s important to rehash a few common concerns about keeping cryptocurrency safe. Many beginner to intermediate-level users wonder whether or not they should have a dedicated cryptocurrency wallet for each digital asset. One of the best ways to guarantee security, beyond taking the usual precautions like…
ABOUT THE AUTHOR
ABOUT THE AUTHOR
Colin is a freelance writer and crypto-enthusiast based in Nashville, TN. When he’s not speculating crypto futures, he’s probably letting his hair down and/or heading to a music festival–because stereotypes exist for a reason.