Binance: Overwhelming Demand Leads to Creation of DEX
The exchange proved its mettle in handling large volumes, but now aims to redirect traffic into a new project.
Binance, an exchange with unprecedented growth, has decided to spin off a decentralized subsidiary on overwhelming trading demand.
In a recent message, the exchange announced that:
"After extensively researching decentralized exchange frameworks and analyzing existing implementations, we believe significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed. Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence."
At the moment, decentralized exchanges are mainly criticized for difficulty of use. Binance will aim to offer a hybrid service, with the big outreach of a DEX, but also the intuitive experience of an exchange and trading platform.
The announcement comes with a few changes. Binance Chain will be a new public blockchain, fully decentralized. The BNB digital asset, now an ERC-20 token, will migrate as the native token of that network.
From Company to a Community
The exchange gave no information on the exact rules of the public blockchain, and what technology would be used for mining or staking. But the move is unprecedented in the history of exchanges, which have been criticized as purveyors of centralization in the otherwise decentralized crypto community.
On the news, BNB appreciated slightly, by 1.12% in the past hour, to $8.12. The potential for moving into an entirely different digital asset type may revive interest in this utility coin. Binance may come up with updates on the projects in the next few days:
Expect more news in the next couple days!— CZ (not giving crypto away) (@cz_binance) March 13, 2018
Binance has always heeded the voice of communities, by holding a monthly vote. But also, the exchange has offered to assist projects in their airdrops, coin splits, and network migrations. In September, Binance also handled the issue of the Chinese ICO ban by offering the option for refunds in the TRON ICO.
But later, it was the TRON project, among others, that led investors to Binance. The boom of altcoins in 2016 sealed the fate of the exchange as one of the leading businesses, but also as a community hub.