Ethereum ERC20 Tokens Can Be Switched to Binance Chain, a Decentralized Exchange
The CEO of Biance and one of the most influential figures in the crypto ecosystem, Changpeng Zhao recently gave an interview at the Binance conference about the upcoming Binance decentralized exchange.
What Is Binance DEX?
Binance decentralized exchange is built on top of Binance Chain, which we started developing and grew into a community initiative, and will use Binance Coin (BNB) as a native asset. Through Binance DEX one can send and receive BNB to anyone on the DEX, send tokens to others on the DEX, and receive some in return, issue and burn tokens as needed, freeze and unfreeze tokens. Additionally one can propose new trading pairs, with the whole community having a say on the merits of the pairing.
To set the matter straight, CZ said that their centralized and decentralized tokens won’t be in competition with each other. Although he stressed that fiat-to-crypto exchanges cannot be decentralized because of the regulatory hurdles by financial watchdogs.
“Most of the guys in the core community are heavy power users and they’re loud, they speak more and they want to use DEX. So we see that not really competing, we’re just offering different solutions to different people and we always let the user choose and we let the market choose.”
Regarding the ERC20 tokens he stated:
“If you’re only using ERC20 as a token, there’s no real reason for you to stay on Ethereum. Whereas on Binance Chain, you get one-second transaction confirmations. One confirmation is final. So it’s a much faster chain and the transaction fees are cheaper. If you’re using some other feature of the smart contract on Ethereum that’s not token issuance related, then we don’t support that on Binance Chain initially. So then, you’ll probably have to stick with ERC20.”
CZ wants to build five to ten fiat onramps around different parts of the world, hopefully spreading out from different continents in 2019. However, he recognizes the limiting factor in the industry currently.