As made quite apparent by the recent regulatory crackdown on 1Broker, a lesser-known crypto trading platform, centralized exchanges are becoming increasingly susceptible to external risks, like regulation and manipulation. Hence why many believe that secure, efficient, no frills attached decentralized exchanges (DEXs) can’t come fast enough.
With a string of recent announcements, it has become clear that Binance intends to fill this growing gap, by introducing its own decentralized platform in due time.
Binance CEO: “Yes, We Work On Saturdays, Non-Stop”
Despite its relative youth, Binance has quickly risen to the top of the crypto leaderboards, establishing itself as a multinational, well-respected cryptocurrency platform that has the nascent crypto industry in its best interest. Although the firm, which is currently headquartered in the island nation of Malta, has gained recognition for its centralized exchange that hosts ten million users, it has become apparent that it is rapidly pushing forward with its plans to create and successfully launch a DEX.
In a recent interview with CNBC Crypto Trader’s Ran NeuNer, Binance CEO Changpeng Zhao noted:
“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.”
While Zhao’s statements made it sound like Binance’s in-house DEX is still a few years away at the very least, as reported by SunshineCrypto previously, it seems that the team Zhao mentioned has pushed far ahead of schedule. On August 9, 2018, Binance CEO Changpeng Zhao dropped an update regarding the startup’s DEX on his well-followed Twitter feed, which hosts 220,000 cryptocurrency proponents.
A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance. https://t.co/2aXkR0gclP
— CZ Binance (@cz_binance) August 9, 2018
In the attached video, which was a short but sweet six minutes, the CEO, who told viewers “to not expect too much,” highlighted the firm’s “casual, rough and pre-alpha” demo that had no graphical user interface (GUI) to speak of. In spite of the lack of consumer-friendly features, Binance developers were still able to demonstrate that the platform was functional by creating, listing and trading a testnet crypto asset in just a few minutes.
Just six weeks after his initial sneak peek, the Canadian-Chinese Binance executive dropped a few more hints about its upcoming platform that will undoubtedly alter how this industry operates from the inside and out. In the following tweet from the crypto-focused entrepreneur, who has long been held as the crypto’s industry golden child, it was explained that Binance’s plan is to integrate its native digital asset, Binance Coin (BNB), as gas for exchange functions, while still not controlling user funds in any manner.
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
Although the details regarding the exact specifics were scant, Zhao ended his tweet noting that a public beta for Binance DEX could arrive by as soon as the end of this year or the start of next year if all goes according to plan. While it is unlikely that Binance’s decentralized platform will garner worldwide adoption from the get-go, as explained by crypto’s most eccentric advocate, John McAfee, the arrival of this new form of exchange will free the shackles of centralization placed on humanity. He stated:
“Distributed exchanges are just around the corner… It means that once we no longer have centralized exchanges, and they will all disappear eventually — within five years they will be gone — nothing can shut us down. It is the absolute end of the war. Governments can’t shut us down, financial institutions, banks, nothing.”
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