Changpeng Zhao, the CEO of leading cryptocurrency exchange, Binance, has taken to Twitter to, sort of, announce some news regarding a ‘sneak preview’ of the new Binance Decentralised Exchange (DEX)
It’s big news, as Binance are one of the world’s most renowned cryptocurrency exchanges, by releasing a DEX, their name is about to get a whole lot bigger.
What is a DEX?
A DEX, or Decentralised Exchange is in essence, as much of a platform for the facilitation of crypto exchange as Binance is. The special part here, is the decentralised element. According to Crypto Compare:
“A decentralized exchange is an exchange market that does not rely on a third party service to hold the customer’s funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system contrasts with the current centralized model in which users deposit their funds and the exchange issues an IOU that can be freely traded on the platform. When a user asks to withdraw his funds, these are converted back into the cryptocurrency they represent and sent to their owner.”
See more for yourself, here.
Essentially, a DEX is a quicker, safer and more secure cryptocurrency exchange. Therefore, within this announcement, Binance are also hinting at a complete overhaul of their exchange.
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 (not giving crypto away) (@cz_binance) August 9, 2018
The sneak preview shared by Zhao is actually quite in depth. The video explores aspects of the project that are informative and often, very technical. It’s not really for the noobs amongst us and would take an awful lot of time to go through, so, if you do want to watch the video, check it out via the tweet above.
As mentioned previously, Binance is one of the biggest cryptocurrency exchanges in the world and thus, it needs to be seen to be innovative and in keeping with the latest trends and technologies. Many believe that DEX’s are the future and that one day, they will totally replace the traditional exchange format, through their tighter security and more organic experience. At the end of the day, cryptocurrency was designed to be as decentralised as possible, therefore, it’s only right that crypto exchanges follow up and enable this.
Through this innovation, Binance can only grow, therefore we are expecting very big things indeed from the Binance DEX.
WIth the launch of a complete DEX, we should expect Binance to move all of its operations from its current centralised format, onto the DEX, though this can only happen over a period of time, so not to upset the markets or their own trading volume too much.
This is the start of a very bold future for Binance. Of course, their rivals are also hot in the pursuit of complete decentralisation but we have to remember that Binance already have a very committed fan base, if the DEX is done right, this will only grow too.