CEO Changpeng Zhao Talks Binance Chain Decentralized Exchange Details
Binance to Launch an Unrestrictive Cryptocurrency Exchange
Later this year, Binance will inaugurate a decentralized cryptocurrency exchange. According to CEO and Founder, Changpeng Zhao, the trading platform will be open to everybody. As opposed to existent crypto exchanges, the Binance platform will not impose stringent rules over digital assets listed on its portfolio. The entry conditions for the current decentralized ecosystem will be used to admit new assets into the exchange's listing. Concerning this, Zhao stated that Binance is embracing the spirit of decentralization by setting low entry barriers. However, the CEO warned that the friendly regulations are likely to attract many potential scammers.
Currently, Binance is the world largest crypto asset trading platform by trading volume. The firm is looking to further enhance its grip on the crypto space by establishing a blockchain network. The network, known as the Binance Chain, will facilitate the fast, secure and fraud-proof transfer and sale of virtual assets. Moreover, through the elimination of intermediaries, the distributed ledger system will significantly reduce the cost of transactions.
As mentioned earlier, the Binance Chain will go live before the end of 2018. Naturally, the large design of a blockchain network requires enormous computing power. As a result, trading on the chain will be pricey as compared to the centralized platform, as well as substantially slower. Therefore, the chain is ideal for users who prioritize anonymity and safety rather than speed and liquidity. Besides the distributed ledger, Binance is also working on a digital wallet for storage of clients' assets.
Recently, there has been a wave of robbery attacks on cryptocurrency exchanges. In 2018, a total of $700 million worth of digital assets has been stolen. Last week, Binance experienced a first-hand phishing attempt and had offered a $250,000 bounty to anybody who discloses information that would aid in the apprehension of the hackers. Nonetheless, Zhao is confident that Binance is immune to these potential breaches since it a fully decentralized entity with neither bank accounts nor head offices. He further went on to compare the blockchain to Ethereum, which supports multiple tokens and is not affected if any of the altcoins crash.
After the inauguration of the Binance Chain, an exchange involving Binance Coin (the native digital currency of the centralized platform) and a new cryptocurrency based on the new blockchain will be initiated. Presently, the Binance Coin runs on the Ethereum protocol. The exchange ratio will be one-to-one.