Binance to launch a decentralized crypto exchange in 2019
World’s number 1 crypto exchange, Binance, has reported to introduce the first decentralized exchange platform, the deadline for their new platform is the end of the year or by the first quarter of 2019. The question that rises is why is Binance after launching a decentralized exchange platform?
Binance knew how to grow in a very short time to become world’s largest cryptocurrencies trading platform in terms of trading volume, despite its very young age. The key to their success is that the innovators of the platform are looking for what the future needs and are always in search for innovations in the interest of the cryptocurrency market. With the setup of their new platform Binance is proving their vision once again. Binance, which so far was known for its centralized trading platform with millions of users, are aiming to start a DEX (decentralized exchange), in a short period of time, in which no one has any control of over the users and their funds.
What is the aim of Binance with the launch of its new platform, especially when we remember that the company is earning money by centralizing users, thus why looking for an alternative to centralizing? Maybe, the fact that Binance is having in mind to set their own coin, the Binance Coin, as a standard payment method for transaction fees on the platform has something to do with it? Even on a decentralized platform, fees are required to broadcast transactions on the Blockchain.
Can a decentralized platform compete with a centralized platform? According to Binance`s CEO, Changpeng Zhao, the current centralized Binance is still a safe alternative for decentralized platforms because of its strong architecture and infrastructure. The platform has never been victim of any hack since its launch in 2017. Chanpeng Zhao, well known in the crypto world as CZ, said that “I believe that decentralized exchange is the future. I don’t know when that future will come yet. I think we’re at an early stage for that so I don’t know if it’s a year, two years, three years, or five years. I don’t know but we got to be ready for it.”
According to Binance the use of a decentralized trading platform can significantly increase as traditional fiat money is becoming less relevant during the trade of cryptocurrencies. Binance is not willing to make any predictions to when this increase will take place, but the company stressed out that it is fully preparing themselves for this change.