Cryptocurrency exchange Binance announced that it had released a testnet for its decentralized exchange (DEX). The exchange is powered by Binance Chain technology and traders can now create a wallet and begin exchanging tokens on the Binance DEX testnet.
In a statement, the Chief Executive Officer (CEO), Changpeng Zhao, popularly known as CZ said, “Binance DEX is a decentralized exchange with a decentralized network of nodes, where you hold your own private keys and manage your own wallet. With Binance DEX, we provide a different balance of security, freedom and ease-of-use, where you take more responsibility and are in more control of your assets.”
The press release further stated that a secure, native marketplace, Binance DEX, built on Binance Chain, will allow the exchange of digital assets that are issued and listed on the DEX. Matching happens within the blockchain nodes and all transactions are recorded on-chain, forming a complete, auditable ledger of activity. Binance Coin (BNB), currently an ERC20 token, will be migrated to Binance Chain to become the native asset. Traders will be able to issue, send and receive new tokens on the blockchain, and also propose new trading pairs to list.
Talking about this, CZ said, “Binance Chain has near-instant transaction finality, with one-second block times. This is faster than other blockchains today. With the core Binance Chain technology, Binance DEX can handle the same trading volume as Binance.com is handling today. This solves the issues many other decentralized exchanges face with speed and power.”
He noted that while Ethereum takes 20 seconds to process transactions and bitcoin takes 10 minutes, without rollbacks, there will be no such obstacle on the Binance chain.
Yesterday, the exchange had revealed certain details about the upcoming launch in which it had said that “load is more important than features”, so initially they would try to show the world that Binance Chain is capable of handling a large number of transactions. Once that is proved, the features would follow.
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