These days especially in the cryptocurrency world, everyone is concentrated on blockchain technology and even launching one. Not long ago, the world’s largest cryptocurrency exchange Binance is planning on launching a blockchain of its own. This is not a shock to most people since a lot of cryptocurrencies.
This Asian cryptocurrency exchange is trying to make it all on its own, now that they are going into blockchain which they haven’t seen any significance. All cryptocurrency exchanges do the same job basically, that is updating the order book stored on the organization’s servers. Through that process, the transaction is made and it usually happens off-chain. Binance has its own token called BNB which is an ERC20. In case you’re wondering what an ERC20 is, well it is a protocol that defines a set of commands that a token should implement. Its token runs on the Ethereum blockchain and there it is not used that much since the token is only operational when using the Binance platform. There also all BNB transactions are done off-chain, the only special case is when customers make withdrawals and deposits.
This past Tuesday, Binance announced the launching of the Binance Chain, a proprietary blockchain with a variety of applications
The third paragraph of the article notes that; After extensively researching decentralized exchange frameworks, we believe significant improvement can be made in providing Binance users with a level of trading experience to which they are already accustomed. This bewildering statement hints that in case it was to change to a hybrid model, it would not have any effect on user experience. The following statement reported that; Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.
Their main purpose for launching the blockchain was revealed in the following paragraph. It stated; As a public blockchain, Binance Chain will mainly focus on the transfer and trading of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity, Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin. The paragraph ended with the following statement that notes; At the same time, Binance will transition from being a company to a community.
Binance also has plans to introduce a decentralized exchange (DEX) which is set to function in company with its current exchange. It is also going to facilitate the trading of digital assets, the DEX will most likely function as a Launchpad for new ICOs and coins.