Binance, the world’s largest crypto-exchange by volume, is expected to launch its own blockchain platform in early 2019.
Binance says it plans to drift 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”.
The exchange hopes that the new blockchain will allow millions of entrepreneurs and developers worldwide to issue tokens.
Binance’s twitter post
#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
According to Binance, the new blockchain network will also support its upcoming decentralized exchange Binance DEX. Since Binance Chain will do more than just issue tokens, the new blockchain network may be designed as a fully-fledged smart contract platform like Ethereum.
Ethereum developers have just agreed on a launch date for its upcoming system-wide upgrade that will address scalability and other critical issues. However, Binance’s CEO Changpeng Zhao, believes that Ethereum, as well as many other leading blockchains that support smart contracts, are simply too slow for mass adoption.
The interview with Zhao
The CEO, Zhao said –
“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 in his opinion of 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 network, Binance aims to fulfill its broad mission of creating a decentralized financial system while expanding its existing ecosystem. The expansion includes its venture capital arm Binance Labs, its educational platform Binance Academy and multiple cryptocurrency exchanges globally.
Binance DEX is also set to launch early next year. 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.
The interface will display a “balances” tab to show users their account balances. Also, the interface looks similar to the original Binance exchange. There’s also a “user icon” that contains the address of a user’s wallet.
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 are expected to create a healthy amount of competition.
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