Binance, the world's largest cryptocurrency exchange by trade volume, launches its own blockchain that will support the imminent decentralized Binance exchange DEX and hosts its native binary currency, the company announced in a post-media on December 5, 2018.
One of the largest exchanges of cryptocurrencies and the largest encrypted company in the world, Binance has ambitious plans to bring traditional blockchain technology closer together.
According to an average post dated December 5, the company plans to launch its blockchain network. Although no precise dates have yet been specified, the company has said that the network will be launched in the first few months of 2019.
Binance also announced that it will transfer its native cryptocurrency, Binance Coin (BNB) from the Ethereum network to the Binance chain, saying that "the details on when Binance Coin will move from one ERC20 token to a Binance Chain native asset will be revealed soon. "As stated in the press release:
Binance DEX It is made by the blockchain community, for the blockchain community, with the support of Binance developers, as part of our mission to spread the freedom of money.
The launch of the company's blockchain follows previous plans to launch a completely new decentralized exchange. According to Binance, community-based decentralized exchange will allow operators to emit and exchange digital assets without having to deposit in a plant. The new exchange is currently under construction on Binance Chain and will use Binance Coin (BNB) as a native resource, the company explained.
The Binance chain aims to solve Ethereum Resizing problems
In his post, Binance said the new blockchain will allow millions of entrepreneurs and developers around the world to issue tokens, which has led many to believe that the new blockchain can be designed as a full-fledged intelligent contract platform, just like Ethereum.
The move was not a surprise, however, as Binance CEO Changpeng Zhao, he often criticized Ethereum for its lack of speed and scalability. He believes that most of the blockchain leaders they support smart contractslike EOS and TRON, they are too slow to allow mainstream adoption. In August 2018, Zhao told Fortune that he thinks the existing blockchains will cede the field to more specialized applications.
And while Ethereum the developers have already agreed on a system-wide update that will solve important problems such as scalability, Binance has gone ahead with plans to launch its own network and decentralized exchange.
Binance DEX It was built as a direct response to the need for a "high capacity chain" and a user-friendly decentralized platform, Zhao explained in an interview. He also noted that the "instant" transactions envisaged by Binance Chain will make them a direct competitor Ethereumand by extension to other intelligent contract platforms such as EOS, Stellar and Tron.
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