Slow speed is a problem for everyone. It can be frustrating to wait for your favourite exchange or, even worse, a cryptocurrency wallet to send funds from one place to another. It's no secret that using an off-chain solution wouldn't solve the slow speed issue, but would it make things better? Building a DEX is hard work because it requires a lot of technical knowledge and programming skills. But Binance is determined to create their DEX regardless of cost or effort because they believe in their product. They want people worldwide to have access to it as soon as possible. Check out how bitcoin helps the poor.
What is Binance (BNB)?
Binance is a cryptocurrency exchange. The largest multi-language, multi-currency platform offers to pair between crypto and fiat currencies. Binance has grown exponentially and become one of the most popular exchanges out there, with good reason.
Cross-chain trading is a feature that allows you to trade different cryptocurrencies on different blockchains, to put it simply. For example, if you have Bitcoin and want to buy Litecoin, you can't do this without cross-chain trading because they don't exist on the same blockchain. This feature is not available on the Binance dex, which is not a cross-chain trading platform. However, it's a platform for exclusively trading on the Binance chain.
It's important to note that building an exchange where users can trade in every possible coin pair isn't necessary when your entire focus is centralized exchange anyway. Having hundreds of coins available at any time would be counterproductive since there will be no liquidity in most markets. Instead, Binance has chosen to focus its resources where needed most: providing liquidity within its ecosystem by adding new assets onto its native chain.
It's no secret that the government is censoring centralized exchanges, and they're censoring their customers. Binance is trying to build a decentralized exchange to remain censorship-free. Binance CEO Changpeng Zhao said that his company would never censor anyone on its platform.
He also recently tweeted about how crypto users should 'take responsibility and avoid scams such as those that give out free tokens in return for your private keys or social security number.
But why would someone need your private keys if it wasn't a scam? This shows how scared he is about losing money because people are not careful enough online. And instead of being proactive and setting up guidelines beforehand instead of later after something happens, which causes damage control afterward.
Decentralization is the Future, But Not Ready Yet
Decentralization is the future. They will decentralize the next generation of financial technology if it's not already. But while decentralization has its benefits, such as being more transparent and resistant to manipulation, it also poses challenges that need to be overcome before DEX can truly take hold.
The first problem is regulation. While regulations are beneficial for protecting consumers, they make building a DEX harder because they require companies like Binance to register their tokens with regulators. And regulators won't grant permission unless the company submits sensitive information about its operations and fund holdings.
A second challenge that they must address is the user experience. People have become accustomed to using centralized exchanges like Binance because they offer fast execution times and low fees at the price of vulnerability. You can keep them on your device without trusting any third party with your money.
A successful DEX needs professional traders willing to trade on an exchange with slower speeds and higher fees for greater security. You can trade through bitcoin trading software. In addition, regular investors who want quick access at a lower cost but don't care so much about security implications and due diligence.
The Road to Complete Decentralization
According to the company, Binance Chain is a blockchain-based decentralized exchange that allows for the creation of new digital assets and tokens. It's not only used as a platform for issuing and trading cryptocurrencies but also acts as an infrastructure for the future growth of the cryptocurrency industry.
Binance DEX is Binance Chain's latest product, which promises to be a hybrid DEX that combines both order matching and decentralized settlement. Instead of having all your funds in custody with someone else like Coinbase.