Copyright © 2017-2019 LHCrypto
All rights reserved.

Articles

Binance is testing a decentralized cryptoplatform

02/21/2019
|
  • Binance_cryptocurrency
Articles list

Binance, one of the largest cryptocurrency exchanges, is starting to test its own platform for decentralized cryptocurrency trading. To do this, they created their own blockchain with BNB tokens and developed specialized software. According to a previously published plan, a test period began on February 20.

Blockchain and decentralization

Decentralized, or over-the-counter cryptocurrency trading was the first way to exchange assets. Transactions between the seller and the buyer occur directly, without the involvement of intermediaries in the face of exchanges or other guarantors.

With the advent of exchanges, this practice has become less relevant, but now it has again begun to attract the attention of investors. Thanks to the blockchain, it became possible to save data for an arbitrarily long time, and to guarantee the security of the transaction.

Blockchain is a chain of information blocks with associated data. Each of them has a time stamp that allows you to ensure their safety. The blockchain is stored on multiple devices; changes in it require confirmation from a significant number of participants.

Due to decentralization, cryptocurrency trading takes place on more favorable terms. There is no need to pay commission to the intermediary. The buyer and seller themselves agree on the price of the transaction.

Why Binance needs decentralization

Back in early February 2019, plans were made to create a decentralized exchange from Binance. After that, BNB tokens rose by 17% over several hours. In the previous month, the asset increased the price by 70%. Given the overall situation in the cryptocurrency market, the dynamics seem very impressive.

The emergence of a decentralized platform will allow Binance to attract institutional investors for cooperation. They are primarily interested in providing this service. It will be based on the Binance Chain blockchain, where block generation occurs every second.

Institutional investors are financial companies that manage a large amount of liquidity. These are usually hedge and pension funds. Insurance companies and credit unions are also included.

Prior to this, the token of the Binance exchange operated on the basis of Ethereum's smart contacts. However, in early 2018, it was decided to create its own Binance Chain blockchain for this purpose.

Prospects for OTC cryptotrading

Now the issues of decentralizedcryptotrading are receiving increased attention. Such platforms have already launched the South Korean stock exchange Bithumb with the help of the venture capital firm Ortus. Prior to this, similar sites were created by RightBTC, Hodl Hodl P2P-Exchange, along with licensed European broker Tenbagger, a number of US credit institutions.

Back in January 2018, the OTC platform from Bittrex for over-the-counter trading started in the USA. More than 200 digital financial assets are represented here, and the average volume of a single transaction starts at $ 250,000.

It is believed that attracting institutional investors will be a new step for the cryptomarket. Now we are actively working to create the necessary infrastructure. However, everyone agrees that the approval of contracts for ETF-bitcoin funds in the USA will be a breakthrough step.

Are you ready to start?
Open Account Be a Partner

LH-CRYPTO is an online service for crypto-traders

LH-CRYPTO is an online service for crypto-traders. The service is available to everyone, except for the citizens of particular countries and several categories of people listed in the License Agreement. LH-CRYPTO is a free software for making conversion operations with CFDs on various financial assets nominated in cryptocurrencies.

The project does not manage funds and does not guarantee profits. The project only offers a service that allows to make conversion operations with cryptocurrencies on a specially configured software.

This website is maintained and supported by the following legal body:

LARSON AND HOLZ IT LTD

All the settlements in this project are processed solely in cryptocurrencies. Conversion operations are processed on the terms of margin trading without a direct supply of underlying assets. According to the generally accepted term, these operations are called operations with OTC (over the counter) CFDs (contracts for difference).

Trading with OTC CFDs involves considerable risks. We recommend you pay the utmost attention to both theory and practice of margin trading before making any of such operations.

The services provided by this project are not available for: residents of USA, North Korea, Sudan and Syria.

visa mastercard 3D secure visa 3D secure mastercard