Binance Chain is Exchange’s Answer to Hacking Attempts
The cryptocurrency ecosystem is always changing and evolving. Some of those changes are major surprises, yet often turn out in a positive manner. The decision by Binance to launch a new decentralized exchange came as a bit of a shock. At the same time, the company acknowledges their centralized infrastructure isn’t suitable to cope with the current demand.
Binance Surprises the World
No one will deny Binance has become one of the biggest cryptocurrency exchanges in the world. Their user base has grown significantly over the past six months. As such, their infrastructure needs to be capable of handling this increased pressure. As of right now, it seems the exchange is almost reaching its limit in this regard. While no outages are expected, it is evident things need to be taken to a whole new level pretty soon.
Doing so is not all that easy these days. For Binance, the obvious solution is to embrace a decentralized business model altogether. It seems that is their current goal. A new project, known as Binance Chain, has been announced earlier today. It is a new public blockchain to transfer and trade digital assets. A decentralized exchange model can offer a lot of advantages, including removing the need for a third party to hold and trade funds.
It is evident this news comes at a rather opportune time. With cryptocurrency exchanges getting hacked quite regularly a centralized business model is a risk rather than a convenience. Solving that problem will take some out-of-the-box thinking. Decentralized exchanges such as Binance Chain are the future for cryptocurrency. We need to get rid of these central points of failure as soon as possible.
What we Know About Binance Chain
For the time being, a lot of information surrounding Binance Chain remains shrouded in mystery. There is no launch date, no list of supported currencies, and so forth. We do know Binance’s BNB Coin will be used as “gas” to power all of the Binance Chain transactions. BNB is the “transaction fee currency” of the decentralized exchange, which will be quite interesting to keep an eye on.
The decision to launch Binance Chain makes a lot of sense given the company’s recent issue. Last week, Binance was targeted by hackers and phishers. An official investigation regarding those attempts is being conducted as we speak. A bounty of $250,000 for any information on the hackers is also in place. With Binance Chain, such attempts are no longer a cause of concern. There is no centralized infrastructure and no custodian of funds.
For the time being, it will be interesting to see how Binance Chain unfolds. With the development of this project underway, its release seems imminent. Pinpointing an exact date is pure speculation at this point, though. With more and more entities focusing on decentralized exchanges, cryptocurrency is entering a new era altogether.