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The new blockchain from Binance

05/08/2019
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  • Binance
  • blockchain
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In April 2019, Binance announced the launch of its Binance Chain ecosystem. On its basis, Binance DEX exchanges were also created with a claim to complete decentralization. As part of the long-awaited release, the network was replaced in May for BNB - the exchange's coins. The digital coin is based on the Ethereum ERC-20 protocol. The main motive of this decision is the fight against fraud in the field of crypto-trade.

What is Binance?

A relatively young cryptocurrency exchange began its work in 2017, but during this time managed to take a leading position among similar sites. Binance provides high liquidity assets through the main cryptocurrency - Bitcoin, Ethereum, Litecoin. The daily trading volume on the stock exchange exceeds $ 4 billion. The stock exchange supports trading in almost 250 types of cryptocurrencies.

For 2 BTC to be withdrawn per day, the user account may not be verified. But for verified clients, larger amounts are available for withdrawal - up to 100 BTC.

Binance Coin own cryptocurrency (BNB). Almost every day new coins are added to the listing, and trading is optimized for mobile devices as well. Another distinctive feature of the site is low transaction fees: 0.1% and 0.05% when paying BNB.

What is Binance Chain?

Binance's own blockchain network is a new opportunity for cryptocurrency trading. Binance Chain, in fact, a decentralized exchange, which will work simultaneously with the main platform, but in a wider range. For example, ICO will be conducted at its base, new tokens will be created, and so on.

According to the CEO of Binance Changpeng Zhao, the main tasks of Binance Chain and Binance DEX are to strengthen the control of users of their own funds and private keys. Also, developers are planning to achieve higher network bandwidth, reduce the size of commissions and raise liquidity.

The new blockchain network uses the Tendermint algorithm, which by its characteristics surpasses the ethereum PoW consensus. This means that scalability will be higher and transaction times shorter.

Interestingly, the developers of Binance Chain did their best to move away from the Ethereum system, even abandoning smart contracts. The emphasis was not on the flexibility of the ecosystem, but on the speed and heavy loads of the network. However, Changpen Zhao does not consider his new creation a substitute for Ethereum. Its main task is not to “kill” the second largest cryptocurrency in the world, but to make strong competition to other exchanges.

What is Binance DEX for?

The first Binance Chain application was designed to handle more transactions. Since DEX private keys are kept by users, transactions are carried out on the network without intermediaries. This approach is not only interested in customers and investors Binance. In particular, the manufacturer of cold-type wallets Ledge has already announced support for Binance DEX. Following it, Singapore joined CoolBitX.

In addition to the release of tokens based on Binance DEX, there are other possibilities - listing by voting. Users will be able to participate in the process, even with a minimum number of BNBs.

Unfortunately, with all the visible benefits of a new ecosystem from Binance, there were some drawbacks. As experts have noted, the largest stock exchange has not published the source code of the software for the full node, which levels the application for a decentralized network. In addition, it is not clear how other projects will move to a new blockchain without this data.

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