Changpeng Zhao has published a video showing a demo of the early stages of the Binance decentralized exchange (DEX), which will be hosted on the Binance Chain. Changpeng Zhao says “As you guys saw, that’s a very casual early demo for the Binance Chain, there’s still a ton of work to be done to turn it into a final product. The team is working on it very aggressively. Nevertheless, I think this is a major milestone for Binance chain”.
The video demo shows how a cryptocurrency based off the Binance Chain can easily be created from the command line, and by the time this technology is released perhaps, it will just be a click of a button to create a cryptocurrency. This looks like it’s even easier than creating a cryptocurrency with the Ethereum ERC-20 protocol, and Binance Chain has the potential to be better than Ethereum for creating new cryptocurrencies in the future.
Another major benefit of creating cryptocurrencies with Binance Chain rather than ERC-20 is the tokens can easily be listed on the Binance DEX, as the video demonstrates. Users can launch trading pairs for their newly created cryptocurrencies, or even for other cryptocurrencies. Since the Binance DEX will intrinsically be decentralized, users will have all the power instead of a central organization deciding which coins get listed.
Further, users will have full control of their cryptocurrency at all times, rather than the way it is now where they have to trust Binance and deposit cryptocurrency on the platform to be able to trade. Users can start trades, cancel trades, deposit, and withdraw at will, and there will be no centralized organization to stop them.
There are some decentralized exchanges based on Ethereum, like IDEX and 0x, but Binance DEX has the potential to be far more popular due to Binance’s well-respected and widely used brand, and the fact that it has tremendous amounts of money to make the perfect DEX.
When cryptocurrency and Bitcoin trading was effectively banned in China in September 2017, Binance left the country along with other top crypto exchanges Huobi and OKCoin. This is motivation for becoming decentralized, since once Binance is decentralized it can’t be stopped and will be available everywhere in the world regardless of government regulations.
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