The largest cryptocurrency exchange Binance launched a demo version of its new decentralized trading platform Binance Chain DEX. The head of the exchange Changpeng Zhao released a video review about listing and bidding features on the new platform.
Everything decentralized is fashionable right now, and Binance is trying in every possible way to match this trend. In March, the company announced creating Binance Chain, a public blockchain, and yesterday unveiled a slightly rough pre-alpha of its new decentralized exchange.
Binance CEO Changpeng Zhao gave some insight into the technical features of the DEX exchange on his YouTube channel.
A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance. https://t.co/2aXkR0gclP— CZ (not giving crypto away) (@cz_binance) August 9, 2018
In particular, Zhao explained how withdrawing coins, listing trading pairs and creating orders will be arranged. The Binance Coin Exchange BNB token will become the main coin of the future Binance Chain blockchain. Binance Chain Exchange will allow its customers to make trading pairs without centralized control. Zhao is confident that Binance will be able to launch the new service for decentralized trade in a month or two. But it all depends on the development team, he reiterates, as they still have a lot of work to do.
WHY IS IT IMPORTANT?
1. Decentralized cryptocurrency exchange servers aren't attached to a single location and are often spread around the world. Some servers can even be truly decentralized by existing solely in the cloud. This kind of exchanges is much harder to hack compared to the regular ones, thus making user data and funds more secure. DEXs do not face legal restrictions due to an absence of physical location, which makes this kind of exchanges much harder to regulate or even shut down. So users that live in the countries where crypto is banned can still get access to it.
2. Decentralized crypto exchanges are considered safer because they do not have access to user’s funds and simply act as a place for peer-to-peer trading.
Earlier this month Binance conducted a purchase of the Trust Wallet, which became the first acquisition of the exchange since it was established one year ago.