Binance, the largest exchange of cryptocurrency by volume trading , announced that it was formally developing a public Blockchain to create a new decentralized exchange, according to a statement on March 13.
Binance's vision that "centralized and decentralized exchanges will coexist in the near future, complementing each other" has encouraged them to develop the Binance Chain, which will be used for the transfer and the Blockchain assets. The move will also push the exchange of cryptocurrency towards the transformation of a business into a community.
"We believe that the continued support of high quality blockchain projects is the best way to develop this industry.We will continue to improve this part, as we wrote in our white paper," says the cryptocurrency.
The new Blockchain will also host Binance Coin (BNB), which will become a native currency on its own mainnet blockchain.
A decentralized exchange differs from a centralized exchange in that it does not rely on a third party service to hold the client's funds. Users are dealing with other users without the need for a central server, and no central authority has a backlog or custody account.
While decentralized exchanges provide more anonymity and are considered more difficult to hack, they may be less intuitive for novice traders and lack some of the features and functionality of centralized trading.
Decentralized exchanges are not new because platforms such as Waves DEX, BitShares, NXT, CounterParty have been around for some time.
Binance's statement regarding decentralization was released the day after the announcement of an equivalent bonus of $ 250,000 to anyone who could provide information that would lead to lawful arrest hackers responsible for the hacking attempt on March 7th.