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Binance CEO Announces Testnet Launch for “Binance Chain” DEX

Reading Time: 2 minutes by on February 12, 2019 Adoption, Altcoins, Blockchain, Development, Exchange, News
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Binance’s CEO, Changpeng Zhao (CZ), has hinted that their decentralized exchange project, dubbed “Binance Chain,” is nearing completion and could be launched as early as February 20, 2019. CZ revealed a few weeks ago that the project would charge at least $100,000 to list coins to eliminate low-quality projects.

Save the Date

As per CZ’s announcement on his official twitter handle, Binance‘s Decentralized Exchange (DEX) is scheduled to be released for public testing on February 20, 2019. Zhao welcomed anyone who would like to provide feedback saying they would embrace any insight on users’ thoughts to aid further improvement of the project.   Zhao Tweeted:

“Finally got a date, Targeting to release Binance Chain testnet (@binance_dex) for public testing on Feb 20th.  This is a testnet; your feedback would be most valuable.”

When he recently hosted an “ask me anything” (AMA) session, CZ exposed fresh details that the DEX project was still under development by the world’s leading cryptocurrency exchange. The CEO explained that they would limit the number of network consensus validators at the beginning, placing the figure at eleven validator nodes. However, as soon as the Binance Chain is up and running, they will be in search of interested parties who can run fast validators.

Liquidity, High-Quality Performance, and User-Friendliness

CZ said during the AMA session Binance Chain wasn’t a smart contract, but an interface that has been designed as a public blockchain whose primary focus will be to allow trading and the transfer of blockchain assets.  The project is expected to ensure liquidity, high-quality performance, and user-friendliness. The Binance Coin (BNB) will be used as the network’s native token. That means that token swaps should be expected soon after the company launches the MainNet.  Explaining further Zhao added:

“Binance Chain is a very simple chain in terms of application, but it can handle huge loads. It is our opinion that the load is more important than the features.”

Centralized and Decentralized Exchanges Will Co-Exist

Should the testnet work as expected, Binance will introduce the mainnet shortly after, which means that BNB could eventually migrate from the ERC-20 token model a few months after that. Once the project is off the ground, Binance will focus on the DEX, something they have always wanted to do since early 2018. Those who use DEXs know that user-friendliness is a significant issue and Binance Chain is expected to address that.

The testnet launch on February 20 will thus usher in an era where Binance’s centralized and decentralized exchanges will coexist. According to Zhao:

“Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence. We stand here today because we believe that Blockchain technology will change the world.”

CZ said during the AMA that Binance chain would initially charge $100,000 to list new coins. The decision to charge high fees is a deliberate move by Binance to try and eliminate scam projects. However, he added that the enormous cost would be reviewed over time.  

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