Binance, the world’s largest cryptocurrency exchange by adjusted trading volume, has presented its long-awaited service Binance Dex, a decentralized exchange which is expected in early 2019.
The ambitious cryptocurrency exchange led by Changpeng Zhao is continuously expanding. Now, the company which expects 1 billion dollars in profit this year and has recently partnered with Chainanalysis, a company aimed at neutralizing crypto violations, released a second demo (the first one was out in August) of Binance Dex. The latter is a decentralized trading platform “made by the blockchain community for the blockchain community.”
Spoiler: its interface does not differ significantly from the current centralized exchange’s version. There are, however, a few additional features which a user should be prepared for. These include an option to generate a 24-word mnemonic seed phrase for users’ private keys, a “balances tab” which indicates the status of an account and a “user icon” in the navigation bar that shows individual wallet addresses.
Besides, its blockchain explorer allows users to search for an individual block, while showing transactions included in a particular block.
“User funds on the DEX will be secured with decentralized wallet applications like Trust Wallet, which has a server-free infrastructure that stores private keys only on the user’s device, meaning only users have access to their funds,” Binance notes. It is noteworthy that Trust Wallet, which has been acquired by the exchange its endeavor to further expand its market., this summer, is already being put into use.
The company went to explain that traders will be able to send and receive ERC-20 based BNB tokens, Binance’s own crypto, by using trading pairs. In particular:
- Send and receive BNB to anyone on the DEX
- Issue new tokens
- Send tokens to others on the DEX, and receive some in return
- Burn tokens as needed
- Freeze some tokens, and unfreeze them later
- Propose new trading pairs, with the whole community having a say on the merits of the pairing
- Send buy and sell orders through trading pairs the community created.”
But what about…everything?
Whilst the company has tried to explain how Binance Dex will function, the video still generated plenty of feedback from YouTube users. Some welcomed Binance DEX and encouraged the company, others were more skeptic posing sharp questions of whether the exchange will really be decentralized. For example, a user who calls himself Liteoshi wonders whether it is possible to shut it down and what tokens will it actually support.
Indeed, not everything about Binance Dex is fully clear at the moment: will the users need to convert their crypto to BNB only? Or will there be additional options?
While these questions are yet to be answered, the fact that Binance continues to grow, even in the current bear market filled with FUD which has been thoroughly analyzed by a British crypto-asset investment company, is elevating the crypto community spirit. Moreover, Changpeng Zhao, Binance’s CEO, emphasized last month that he believes that the bull run will happen at some point.