On April 18, World’s largest crypto exchange, Binance, launched its blockchain. The blockchain goes by the name Binance Chain main-net. With the launch of this blockchain, the company aims to support decentralized exchanges or DEX.
According to reports, the company includes decentralized exchange in its pipeline. And, the company is to launch the new blockchain probably in the next week.
Binance has over 10 million users, as per data say. The company tweets that on 18th April, it is the beginning of a new genesis block. In addition to that, the exchange is quite hopeful of introducing a new and efficient protocol. The protocol is meant for decentralized applications or Dapps. However, it requires a higher transaction capacity.
Similarly, the team of Binance explains the launch. According to the team, they created Binance Chain to support the exchange and issuance of digital assets. They also say that any project can issue new tokens on Binance Chain. But, the existing tokens do not depend upon smart contracts. They add that the existing ones can migrate towards Binance Chain.
Binance Team explains the aim of new exchange
Further, Binance team explains the aim of the move to natively exchange on Binance DEX. They also highlighted the benefit of Binance Chain. It includes high throughput network and low latency. According to them, it will inspire more project participation and more economic freedom. Binance DEX will help for a long-term vision for peer-to-peer crypto trading.
Moreover, the world’s largest exchange expects to move its native token. For instance, Binance Coin or BNB is the coin that the company is set to replace with the new blockchain platform.
Currently, BNB trades on Ethereum network. As data suggest, the market capitalization of the premiere token is $2.95 billion.
However, the exchange believes they will inspire other cryptocurrency projects. As a result of which, other crypto firms will follow their suit and migrate towards Binance Chain main-net.
Further, reports say that the exchange will create BNB on Binance Chain. The move will supply 200 million. However, on this, the company will burn 11,654,398 BNB. It is to replicate the supply of BNB on Ethereum.
Changpeng says the new exchange will allow users to control their private keys
On the other hand, the CEO of Binance, Changpeng Zhao has to comment on the matter. He explains that the new amendment will help the users to have adequate control of their private keys. He goes on explaining that Binance DEX has a decentralized network of nodes. On these nodes, the users can hold their private key, says Zhao. He further explains that users can also manage their wallet with this new exchange. With the help of Binance DEX, the company will provide greater security, ease-of-use, and freedom. Binance also claims that users can have more control of their asset with Binance DEX.
Furthermore, the team of Binance explains the allocation of BNB. According to them, they will allocate 5,000,000 BNB at first. They will also deposit it into the address by Binance.com. It is to convert ERC20 BNB for its existing owners. The exchange will also burn about 5,000,000 ERC20 BNB to keep the supply constant.
Also Read: Centralised Exchange Vs Decentralised Exchange : An Ongoing Debacle