Observers have been given a rare insight into the upcoming decentralized exchange (DEX) being developed by Binance.
On Thursday, Binance, operators of one of the largest crypto exchanges by trading volume, released the first-ever demonstration on of its decentralized crypto trading platform to the public. The demo launched by COE Changpeng Zhao was a footage which illustrated the processes of issuing, listing and trading crypto assets on the DEX. It showed a command line terminal for the processes while a developer provided the voiceover.
While presenting the demo, Zhao told observers that the demo came ahead of schedule giving accolades to the developers. He said, “I thought this would happen one to two months later or more but again, the team delivered early.” He acknowledged that the project was still in its early development stage while assuring it is being given priority. Zhao remarked, “There’s still a ton of work to be done to turn [it] into a final product. The team’s working on it very aggressively. Nevertheless, this is a major milestone for Binance Chain.” He also presented Binance Chain, which is Binance’s blockchain where the DEX will be deployed. In March, Binance announced that it was planning to launch a decentralized exchange as well as the Binance Chain.
Centralized versus Decentralized Exchanges
Decentralized exchanges, which ideally do not a central point where data and crypto assets are stored have been touted as the future of crypto trading. Centralized exchanges like Binance and Huobi have announced plans to create decentralized exchanges. But there is still a long standing debate about which type of exchange is best for cryptocurrency traders and users.
In an interview with Smartereum TV, Kenzi Wang, General Manager of Operations at HBUS, a strategic partner of Huobi in the US highlighted the benefits of both systems. According to him, DEXs were more technologically forward systems and keeps users away from certain regulatory controls. They were however pegged back by issues of low liquidity,the difficulty of use and security concerns. Centralized exchange on the hand offered more liquidity and customer support. The binance team believes that in the future, centralized and decentralized exchanges will co-exist and be interdependent.