Binance Chain, the decentralized spin-off of the world's largest crypto exchange, is fast approaching its release date, said CEO Changpeng Zhao. In a recent livestream, Zhao said DEX's Testnet will launch in the next week or two. He also revealed some new and tantalizing details about the project.
The DEX in detail
The planned start date of the DEX was of course a highlight of the livestream. Zhao pointed out that an open beta would start soon, and also pointed out that no access was required. In the meantime, developers of wallets and block researchers have been given early access, so third-party tools should be available soon.
The performance of the exchange was also a major topic of discussion. Zhao pointed out that Binance Chain's underlying blockchain is currently capable of handling several thousand transactions per second, although its performance can be significantly increased. Zhao also pointed out that Binance Chain can handle millions of chips.
Tokens take priority
An exchange is nothing without its quotations, and Zhao has stated that the listing of a token will initially cost $ 100,000. However, this amount is likely to be adjusted and the voting will ultimately be used to prevent the listing of fraud. Binance had previously come under fire for its high stock market listing fees, so lower barriers will undoubtedly make many critics happy.
Zhao also showed that issuing a token will be a very simple process. Instead of using a smart contract, the tokenizers can output a token through a simple interface. Zhao explained that Binance Chain is very simple in terms of its applications, and that handling heavy loads is more of a problem than offering complex functions.
Binance Coin (BNB) will also play a key role. This token can be used to pay for exchange fees. In this way, investors receive a discount on the trading costs. In addition, the coin is migrated to the Binance chain at the time of insertion. Currently, the coin is built on Ethereum.
Consensus and rewards
Zhao also discussed Binance Chain's consensus mechanism during the livestream. Eventually, the blockchain will rely on a DPOS mechanism, much like the system used by EOS and TRON. This allows co-owners to vote for block creators and validators. However, Binance Chain will also rely on Tendermint's PBFT mechanism.
Node operators are rewarded as usual by handling transactions. Zhao reveals that the testnet will initially only run 11 nodes. Technically, everyone is able to operate a node, but this is very tedious, depending on the traffic and the volume of the stock market. With one block produced per second, node operators must have high-end hardware.
This means that running a node is a fairly exclusive privilege. Initially, Binance Chain's nodes will be selected from the Company's closest partners, although the impact of Binance will decrease over time. Ultimately, Zhao expects Binance Chain's total number of nodes to be small, matching the size of NEO and ripple networks.
The big picture
Centralized exchanges are currently dominating crypto trading, but they are controversial because they have the ability to control money and keys – and because they collect user identities. The decentralized exchange, on the other hand, is an escape from an overarching policy that has so far been relatively unsuccessful.
As the largest crypto exchange, Binance has the potential to create and operate a DEX to a greater extent than ever before. Zhao himself notes that Binance's position is in the "best position" to work with other blockchain projects. Undoubtedly, the launch and growth of Binance Chain will be one of the biggest events of the year.
Post source: Binance chain launches Testnet within two weeks: CEO reveals DEX details
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