Binance Shares Video of Upcoming Decentralized Exchange
[TL;DR]: Binance’s Upcoming Dex’s design builds upon the company’s winning formula
Binance developers have shared a sneak peak of the company’s upcoming decentralized exchange.
The seven minute long walkthrough sheds light on the project, revealing that the exchange will implement a design familiar to anyone who has used Binance’s existing service. Alongside a similar design, it appears that the DEX will offer the same large range of trading options that led to the exchanges success.
Binance, the largest cryptocurrency trading exchange, with nearly $700m daily volume, announced it was working on a decentralized exchange in March. The company’s existing cryptotoken, Binance Coin (BNB) is set to be upgraded to provide the infrastructure for the DEX, and is now ranked in 13th place with a market cap of $737m.
What is a decentralized exchange?
Decentralized exchanges are the answer to the main flaw of traditional exchanges, hacking. Centralised exchanges require users to send their cryptocurrency to the exchanges central server, gathering users funds into a large central wallet. These wallets present a highly desirable, and often easy target for thieves, as well as often being mishandled by exchanges themselves.
In 2018 alone over a billion dollars of cryptocurrency was stolen from centralised exchanges, with Japan’s Coincheck losing $530 million alone.
Decentralised exchanges allow users to keep full control of their private keys, with users trading directly from wallet to wallet.
Recent years have seen a growing number of decentralised exchanges, but they have usually suffered from low liquidity. Without enough active users, trades often fail to fill, leaving many looking for convenient centralised alternatives.
One Ethereum-based project, 0x, is developing a potential solution, allowing different DEXs to use a shared liquidity pool, matching orders from one site on another. The project has been gaining momentum, with exchanges using the 0x infrastructure such as Radar Relay gaining volume, and the 0x token was recently launched on popular fiat-crypto gateway Coinbase.
Binance’s upcoming DEX might beat 0x to the chase however, especially if it’s able to bring in a fraction of the over 8 million users registered on its existing exchange.
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Summarised crypto news.