The virtual currency exchange Binance has hinted at the upcoming launch of its decentralized exchange (DEX). According to Changpeng Zhao, CEO and founder of the platform, Binance Coin (BNB) will be used as native gas on the future DEX. The information has been released by Zhao on Twitter a few days ago.
Binance Coin to Power Binance DEX
Binance Coin is the virtual currency created by the cryptocurrency exchange Binance. Nowadays, it can be used to pay for fees at the exchange. Those who use it receive an important discount on the fees paid while trading cryptocurrencies.
However, in the future BNB could be used to power the decentralized exchange that the company is building. Changpeng Zhao wrote on Twitter that BNC will be ‘native gas’ for the exchange. The company has released a roadmap
Just had a productive meeting for #Binance #DEX (decentralized exchange), where $BNB will be native gas, and the exchange don't control user funds. Aiming for a public beta end of the year/early next year. Yes, we work on Saturdays, non stop!
— CZ Binance (@cz_binance) September 29, 2018
Binance is trying to expand its platform all over the world and not only in the United States. At the moment, Binance is headquartered in the Blockchain island of Malta. The country has been very welcoming to new companies related to blockchain and cryptocurrencies. The European country offers clear rules and a stable legal environment for the industry to grow.
Decentralized exchanges are different than centralized platforms. Nowadays, the most important exchanges on the market are controlled by a centralized party. The same happens with the funds that users have deposited on their accounts. This clearly increases the risks for the user since these platforms are vulnerable to attacks and hacks.
In the past millions of dollars have been lost due to hackers attacking cryptocurrency exchanges.
Decentralized exchanges work in a different way. There is no centralized party controlling users’ funds, meaning that they are not at risk. However, centralized exchanges are faster and have better usability than decentralized platforms. Binance could change that offering a user-friendly product that would allow users to trade on it seamlessly.
During a recent interview with CNBC Crypto Trader’s Ran NeuNer, Zhao commented:
“I believe that decentralized exchanges are the future. I don’t know when that future will come – I think that we are at an early stage for that, so I don’t know if it will be a year, two years, three years or five years, but we have to be ready for it. We (Binance) are now actively investing our efforts, our time into this [space]. We have a dedicated team working on this.”
Binance could unveil its new decentralized platform at the end of 2018 or the beginning of 2019.
At the time of writing, Binance Coin is in the top 16 cryptocurrencies by market capitalization. Its market cap is $1.17 billion dollars and each BNB coin can be bought for almost $10 dollars.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.