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Binance pivots to blockchain, moves to create new decentralized exchange

Binance has announced the creation of a new, decentralized cryptocurrency exchange in the form of Binance Chain.

Written by Bryan Smith Published on

Shortly after it noted a new a vulnerability found within compromised API keys which resulted in some users noting unauthorized transactions, Binance – the largest cryptocurrency exchange by trading volume – has announced a new pivot that will see the launch of a decentralized cryptocurrency exchange dubbed Binance Chain.

In a statement, Binance elaborated that “we believe significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed”, and added that “centralized and decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.”

Explaining the move as part of a wider bid to transition its services from ‘a company to a community’, the firm has now announced that Binance Chain would be used to transfer different blockchain assets and would re-appropriate the company’s Binance Coin token to its own native blockchain, rather than leverage Ethereum’s ERC20 standard.

While it remains unclear as to how the company plans to transition its Binance Token from the Ethereum platform to its own native blockchain, the company might well introduce a token swap for new entrants to its decentralized exchange offering.

In a statement, the company elaborated that “as a public blockchain, Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin.”

The news, understandably, has driven excitement in cryptocurrency markets – Binance Token has risen by some 20 percent at press time, and is presently trading at $10.36 USD.

The move to a decentralized exchange might well allay the fears of committed investors made wary by the recent hacking attempt on the company’s services. Recently, company CEO Changpeng Zhao announced a new $250,000 USD reward in exchange for information on the hackers behind the attack.

Have your say!

What are your thoughts? Would Binance’s standing bounty and move to introduce a decentralized exchange soothe your concerns in using the platform? Be sure to let us know your thoughts on Twitter – join the conversation @coininsidercom!

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Written by

South African technology journalist, podcaster, photographer and filmmaker. Hodling - BTC, NEO, ETH.@bryansmithsa

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