Is Binance DEX a Real Threat to Ethereum’s Blockchain Ecosystem? Has the Great Migration Started?
Changpeng Zhao, the CEO of the largest crypto exchange in the world, Binance, recently talked about the exchange, the new DEX, as well as matters of centralization and decentralization of the new project and its technology. He also shared details regarding Binance Chain, and what the exchange plans for the future.
These details were shared in an interview with one of the prominent YouTube channels, Ivan on Tech, which currently has around 200,000 subscribers.
Binance DEX Is A Hot Topic
The decentralized version of Binance, known as Binance DEX, has been quite a hot topic in the crypto industry recently. The crypto community anticipated the launch of Binance DEX for a long time, and on February 20th, the testing version of the DEX finally became available to the public.
While decentralization is the whole point of this exchange, CZ stated that the exchange would be somewhat centralized, at least in the early days, since all of the network's nodes will be run by Binance and a few trusted partners. However, this is expected to change later down the line. While he understands the importance of decentralization to the community, Zhao also stated that the Binance Chain and DEX are currently more focused on achieving freedom and better security, while still maintaining the ease of use.
The fact that the new exchange will be called Binance DEX already gives it a lot of influence, as Binance itself, as the world's largest crypto exchange, has a lot of influence. However, according to Zhao, the exchange aims to be useful and to drive further adoption, rather than to achieve 100% decentralization.
However, while the nodes will initially be run by Binance and partners, this is the only aspect of the DEX that will have some level of centralization to it. Everything else is developed with full decentralization in mind. In other words, users will own their private keys, while the network will not have access to them.
And, as mentioned, the nodes will be decentralized as well, only it would take a certain period to fully reach that stadium. Eventually, Binance hopes to keep at least one node, while the rest of them will be held by others, although it is not clear who that might include at this point.
Binance Chain Details
After talking about the DEX, CZ moved on to comment on the Binance Chain itself. He talked about the project's long-term goal, technical details, and even Binance Coin (BNB), stating that it will be moved to Binance Chain as soon as the MainNet goes live. BNB is currently still part of the Ethereum network, as an ERC-20 token, although it is the native currency of Binance's ecosystem. The goal is to keep it and use it for paying gas for the network transactions.
However, CZ also pointed out that there will be no smart contracts on Binance Chain. However, users will still have the ability to issue coins or submit proposals to get different coins listed on Binance and Binance DEX alike. Listing of the coins on the DEX will also be fully decentralized, with the nodes being the one to decide which coins will be listed via the voting system.
Another thing that Zhao pointed out is that Binance Chain will have one-second blocks, meaning that it will only take a second to process any transaction that users might make. The speed will be one of the chain's greatest features, apart from better security and the ability for cryptos to migrate to Binance Chain after leaving their own blockchains.
In fact, he claims that as many as eight projects will be leaving Ethereum's blockchain to join Binance Chain.
CZ concluded the interview by saying that the crypto industry is still in its early stage and that he expects millions of tokens in the future, as well as thousands of blockchains. As it is impossible to predict which turn this tech might take in the future, he hopes to see many different special-purpose blockchains, with Binance Chain being one of them.