Binance shows off new decentralized exchange
In a tweet from yesterday, Changpeng Zhao, CEO for the cryptocurrency exchange Binance, let the public have a quick glance of the company's upcoming decentralized exchange. He admitted that the new platform is still in its early development phase and that it still doesn't have a graphical user interface (GUI), but the idea of a decentralized exchange is a popular one among crypto enthusiasts concerned with the security vulnerabilities inherent to centralized exchanges.
Zhao tweeted, "A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli [command-line interface] based, no GUI yet. A small step for #BinanceChain, a big step for #binance." He included a link to a six-minute video that has Zhao discussing and showcasing the new offering. He mentioned that the platform will highlight three essential crypto exchange characteristics - creation, listing and trading.
As far as exchanges go, decentralized exchanges are the favorite. They allow users to keep ownership of their digital assets, while centralized exchanges pool all the assets into a common repository. This makes them a prime target for hackers, who are able to steal large amounts of crypto in one action.
Binance is pushing heavily for more decentralization of the cryptocurrency ecosystem, consistent with the original concept of digital currency. The exchange recently purchased the crypto wallet Trust Wallet, a decentralized open-source wallet that supports Ethereum and more than 20,000 different tokens based on the Ethereum protocol.
The company is also looking to launch a blockchain-based bank. The Founders Bank will be owned by digital currency investors and will be based in Malta due to its flexible and open crypto regulatory environment.