What’s The Intention Behind Binance Chain and the Attraction from Other Crypto Projects to Use?
Binance is one of the largest and most popular cryptocurrency exchanges around the world decided to launch a new Binance Chain and decentralized exchange (DEX) this year. Although the platform was hacked a few days ago, there are many projects in which the company is working on.
What Is Binance Chain?
Back in April, the firm launched the so-called Binance Chain. At the same time, it moved the Binance Coin (BNB) from the Ethereum (ETH) blockchain to the Binance Chain. Additionally, Binance launched its long-expected decentralized exchange.
The main intention behind Binance Chain is to help new projects, Initial Coin Offerings (ICOs) and tokens enter the crypto market. Through its own chain, the company provides other projects with the possibility to launch their networks and tokens, something similar to what Ethereum (ETH) and Tron (TRX) are doing.
Ethereum lost a lot of trading volume since BNB tokens moved to their own blockchain. That means that all the BNB trading volume that was processed by the ETH will now be conducted through Binance Chain. There are also some projects that decided to move from the Ethereum network to Binance chain.
The company started as a centralized exchange that expanded with new altcoins and virtual currencies. Now it has launched a blockchain network and its own decentralized exchange with its own digital assets.
The CEO and founder of the platform, Changpeng Zhao, commented:
“We believe decentralized exchanges bring new hope and new possibilities, offering a trustless and transparent financial system… With no central custody of funds, Binance DEX offers far more control over your own assets.”
During a conversation with Forbes, a spokesperson for Mr. Zhao said that the new chain will bring new freedom for traders and projects that want to raise money. The new DEX aims at solving the issues faced by other decentralized exchanges in the past and that were not able to gather the attention of crypto traders in the market.
In this conversation, the spokesperson talked about why investors, users, and companies will be using Binance’s services. He said that one of the main reasons was due to is security. However, this point has been rejected a few days ago after the hack that the company experienced. Binance lost 7,000 BTC, close to $40,000,000 in a recent hack, the first experienced by the platform.
At the same time, there will be early projects that will migrate over and will be receiving additional support from Binance.com.