Transactions are the backbone of the cryptocurrency market, and most of the world’s cryptocurrency trading is done through centralized exchanges. Due to KYC and Anti-Money Laundering regulations, exchanges are often required to seek users’ identities for capital deposits, creating centralized record-collection and data-storage of personal information which is quite opposite to the principles of decentralization.
Binance, a leading bitcoin and cryptocurrency trading platform, is looking to address this problem by launching their own decentralized exchange or DEX, known as Binance chain. It enables traders to issue and exchange digital assets without having to deposit onto the central exchanges.
Speaking at the stage of Forbes Asia Forum: Decrypting Blockchain, the CEO of the Binance Changpeng Zhao (CZ) said that:
“We are launching Binancechain very soon, in a couple of months or so, and you will be able to issue tokens on that… I think there will be millions of coins and thousands of blockchains.”
The new Binance-backed blockchain aims to provide a basis for creating new cryptocurrencies and Initial Coin Offering (ICO) tokens, as the company said in a tweet:#Binance is pushing for blockchain adoption and doing many things to help advancement of the industry. E.g. we will have the Binance chain ready in the coming months, on which millions of projects can easily issue tokens. @cz_binance @ForbesAsia #ForbesBlockchain pic.twitter.com/0pc0r1lXd2 — Binance (@binance) December 4, 2018
Binancechain will have the Binance token as the native token on its own blockchain rather than running on the Ethereum blockchain. This new decentralized exchange will run alongside centralized exchanges in the near future.
According to CoinMarketCap, Binance is one of the largest cryptocurrency exchanges in the world, with an adjusted daily trade volume of around $587 billion.
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