Binance unveiled their first look at their upcoming decentralised exchange ‘Binance Chain’. The sneak peak was a video walkthrough of the exchange which was uploaded to Binance’s official YouTube channel.
The demonstration in the video is the first real mention of the Binance Chain project since they announced they will launching a decentralised exchange back in May. In the video the developers who were supposedly “camera shy” created a mock-up token, issued it on the Blockchain, sold and created a buy order for it.
Zhao described the demo as a “small step” for Binance Chain but a “big step” for Binance itself.
What is Binance Chain?
Binance chain is an ambitious update by the Binance company in which they will be launching their own blockchain mainnet with a decentralized exchange to run alongside their current exchange. Binance chain will have the Binance token as the native token on its own blockchain rather than running on the Ethereum blockchain. Binance also identified that decentralized exchanges will run alongside centralized exchanges in the near future. One of the main issues right now is that decentralized exchanges have poor liquidity, low user base and therefore have low trading volume. Binance is looking to address this problem though launching their own DEX.
As a public blockchain, Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin. At the same time, Binance will transition from being a company to a community.
Founder of Binance, Chapeng Zhao, revealed; the decentralized exchange, which needs more computing power for many computers to verify and record trades, will be slower and have higher fees than the centralized platform. However, will have more of a focus on anonymity for users and will allow the trading of a greater range off assets.
No official release date
“I thought this would happen one to two months later or more, but the team delivered early,” he commented in the video. “It is very much still in early pre-stage development, so this is a casual early pre-alpha demo.”
Although there is no official release date for Binance chain, Chapeng Zhao has stated that he expects Binance Chain to launch later on this year. Binance has come such a long way in such a short space of time and this development will be one of many huge developments for the overall Binance project.
One thing we do know for sure is that Binance are working on this already through their “Binance Dexathon – Decentralized Exchange Coding Competition“. They have invited coders form all over the world the chance to win a share of $1,000,000 and to become part of the Binance team. The goal of the competition:
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