Binance is the largest cryptocurrency by exchange volume. And it is now raising the bar even higher by developing a public blockchain. This is according to a statement released on March 13th.
Binance has always had the vision that centralized and decentralized exchanges are bound to co-exist in the near future by complementing one another. Based on this vision, it has seen the need to come up with the Binance chain that will help in the trading and transfer of trading assets. This move is also expected to bring about a paradigm shift whereby the cryptocurrency exchange is expected to transform from being just a company to a community of crypto enthusiasts.
The statement released read in part:
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.
This is confusingly worded, but seems to be implying that if Binance were to switch to a hybrid model, the user experience would not be impacted; the statement continues: “Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence”.
Why Opt for Blockchain?
Looking into the details of the statement released, it transpires that the reason for Binance going it alone to launch its blockchain is to provide a platform for other people to take part in the process and thus expand their platform into much more than just a company.
New Coins and ICOs to Benefit
According to a tweet by Changpend Zhao, the CEO, the company hopes to launch a decentralized exchange that will work hand in hand with its current exchange. Apart from operating as a digital assets facilitator, the DEX is most likely to also work as a launchpad for emerging ICOs and new coins.
Binance has built its reputation over time, thus earning the trust of its customers. This was especially pronounced when it handled the Viacoin pump and dump surprisingly well considering the surprise downtime it went through last month.
What do you think about Binance’s move to go it alone in developing a blockchain? What will be the impact of the move, both for the company and the crypto community as a whole? Let us know your views in the comments section below.