One of the leading cryptocurrency exchanges, Binance releases its decentralized exchange or DEX. While the flagship of the exchange is centralized, Binance DEX will not interact with a centralized party. It will allow the trader of cryptocurrencies to manage their private keys instead. As per a report on Tuesday, Binance DEX will run on the native blockchain of Binance. As per matter of fact, the blockchain of Binance goes by the name Binance Chain.
Similarly, the CEO of Binance, Changpeng Zhao, comments on the launch of Binance DEX. He says that the new exchange will fulfill the mission of the company. According to him, the mission of the company is to build a decentralized future. He also emphasized on the open global financial system. Modern technology like blockchain and cryptocurrencies will power such systems.
Further, Zhao says that Binance DEX offers more control over the assets of traders. He clarifies that it will require no custody of funds. In addition to this, he hopes the move will bring a new level of freedom to the crypto community. Furthermore, he assures that, they will work with projects closely and let teams grow the ecosystem.
Binance Coin, the native asset on Binance Chain
On the other hand, Binance Coin becomes the native asset on Binance Chain. It is as a result of the launching of Binance Chain main-net. Interestingly, the crypto firm is the seventh largest cryptocurrency as per market cap. Recently, the firm removed Ethereum blockchain replacing it with Binance Chain.
However, the massive token swap that happened on Tuesday, regarding the 5 million ETC20 BNB, the firm met with a dead end. It happened as a part of the conversion process.
As a matter of fact, for network transactions, people use BNB. Near to about 8.5 million transactions occurred across trading competitions during test-net of Binance DEX. It also included things, for instance, bug bounty program, coding competition, etc.
Similarly, a list of different supported wallets came up that people can use in Binance DEX. Some of the wallets are trusted wallet, Ledger, Enjin, Magnum, CoolWallet, Exodus, Math Wallet, Atomic Wallet, and Infinito Wallet. The list further includes Coinomi Wallet, ZelCore Wallet, Ellipal Wallet, and Guarda Wallet.
However, users can do lots of things with the lunch of Binance DEX. Users can perform things like creating accounts, use blockchain explorer and access web wallets. But, it will require an actual trading date.
Binance’s DEX would not solve liquidity barrier-Hindman
Similarly, the communication director for Bancor which is a DEX has to say on the matter. According to Nate Hindman, Binance’s DEX would not do much to solve the liquidity barrier. It is because DEX of Binance relies on the traditional systems, says Hindman. He adds that it will prevent the offering of frictionless conversions with low-volume tokens.
With no surprise, Hindman suggests that Bancor’ model serves better for low volume tokens. He claims that it maintains a pool of liquidity so that investors can tap at any time.
On the other hand, the announcement of the launch clarifies a few things more. According to it, the users can get access to public data nodes and also to APIs.