[2019-04-24] Binance Promises Decentralized Future Powered by Crypto With Launch

[cybersofts]

Binance Promises Decentralized Future Powered by Crypto With Launch of DEX

Leading cryptocurrency exchange Binance has released its decentralized exchange (DEX). Unlike the company’s flagship exchange, which is centralized, Binance DEX does not interact with a centralized party. Instead, Binance DEX allows cryptocurrency traders to manage their own private keys. Announced on Tuesday ahead of schedule, the decentralized exchange will run on Binance’s native blockchain, Binance Chain.

CEO Changpeng “CZ” Zhao says the new exchange fulfills the company’s mission of building a decentralized future and an open global financial system powered by cryptocurrencies and blockchain technology.

Says Zhao,

“With no central custody of funds, Binance DEX offers far more control over your own assets. We hope this brings a new level of freedom to our community. We will work closely with projects and teams to grow the entire ecosystem.”

With the Binance Chain mainnet launch, Binance Coin (BNB), the seventh largest cryptocurrency by market cap, has become the native asset on Binance Chain, moving from the Ethereum blockchain. In a massive token swap on Tuesday, five million ERC20 BNB were burned as part of the conversion process.

BNB is used for network transactions. During the Binance DEX testnet phase, nearly 8.5 million transactions were made across a simulated trading competition, coding competition and bug bounty program.


Reference: https://dailyhodl.com/2019/04/23/binance-promises-decentralized-future-powered-by-crypto-with-launch-of-dex/

[joniboini]

Last time I remember they require $100,000 deposit for any projects that want to get listed on their DEX. Seems like it's not fully decentralized. The only part that might be improved from their CEX is probably the ability to fully control your funds, but that's it. In the end, they can still make money though. In other words, it's like IDEX.

[figmentofmyass]

Last time I remember they require $100,000 deposit for any projects that want to get listed on their DEX. Seems like it's not fully decentralized. The only part that might be improved from their CEX is probably the ability to fully control your funds, but that's it. In the end, they can still make money though. In other words, it's like IDEX.

indeed, not decentralized at all. non-custodial would be a better word for it. binance chain's validation is completely centralized---it's all validated by binance's nodes. it's about as decentralized as ripple!

i'm hearing rumors about projects that want to migrate to or launch on binance chain---that seems insane to me given the utter lack of incentivized security. ERC-20 tokens are much more secure on ethereum given that it has actual POW security. projects using binance chain is probably just a gimmick to pump prices because it means listing on binance.

[Naida_BR]

Last time I remember they require $100,000 deposit for any projects that want to get listed on their DEX. Seems like it's not fully decentralized. The only part that might be improved from their CEX is probably the ability to fully control your funds, but that's it. In the end, they can still make money though. In other words, it's like IDEX.

Some months ago, CZ said that they do not charge any listing fee for projects. He said that if you want to get listed on Binance then your project needs to be awesome and can bring true value in the world. He also stated that Ethereum for example didn't pay any listing fee.
Still, they are centralized and if they launch a mainnet i think that Binance will make some steps towards decentralization.

[IconFirm]

indeed, not decentralized at all.

Exactly. I'd go as far as saying it's somewhere between complete BS & a blatant lie. Centralized exchanges are trying to jump on the decentralized bandwagon in an effort to boost their reputation, but statements like this have the opposite effect.

[CryptoBry]

indeed, not decentralized at all.

Exactly. I'd go as far as saying it's somewhere between complete BS & a blatant lie. Centralized exchanges are trying to jump on the decentralized bandwagon in an effort to boost their reputation, but statements like this have the opposite effect.

Well, this is the exact message from Binance: You can never have your cake and eat it too! I am still wishing that indeed as time goes on Binance can be fulfilling all of the things it promised in the past for the benefits of the whole industry while at the same time we are also letting them make good money out of the platform. Binance remains to be the biggest and the most lucrative at that in the business of cryptocurrency exchange so the influence and clout is undeniably there.

[Slow death]

I ask myself: what if governments legalized bitcoin and every crypto market and with this legalization they demanded that all exchanges had to have licenses and periodic inspections would be done, how would it be done in these DEX exchanges?

[BitHodler]

Centralized exchanges are trying to jump on the decentralized bandwagon in an effort to boost their reputation, but statements like this have the opposite effect.

True that. I always found it quite an interesting development seeing how Binance, a centralized money making machine, is building something that potentially could disrupt its own exchange.

No way they will allow that to happen, but most noobs are noobs for a reason--they take everything for granted without doing research themselves, especially when it comes from CZ with how popular he has become.

Soon we'll have a shitload of dexes that aren't dexes at all due to how Asian exchanges copy everything they think will have success. Instead of helping crypto in general they are ruining everything.

[pokermaniacxxx]

I believe in Binance, their exchange has earned an excellent reputation over the years and has become one of the largest in the world. Besides, decentralization is the future.

[elda34b]

I believe in Binance, their exchange has earned an excellent reputation over the years and has become one of the largest in the world. Besides, decentralization is the future.

'years'? You mean 2 years? That's not enough to make me put all of my trust. Think again, Binance wants money, so there is no way they'd promote decentralization if they can't make any money.

I ask myself: what if governments legalized bitcoin and every crypto market and with this legalization they demanded that all exchanges had to have licenses and periodic inspections would be done, how would it be done in these DEX exchanges?

Depends on what is the content of that inspection. If it requires the ID of the traders that use their platform and do that trades, it's essentially a killing move for DEX. Almost all of them would become something like IDEX after their last update to continue running their site.

[milewilda]

I believe in Binance, their exchange has earned an excellent reputation over the years and has become one of the largest in the world. Besides, decentralization is the future.

'years'? You mean 2 years? That's not enough to make me put all of my trust. Think again, Binance wants money, so there is no way they'd promote decentralization if they can't make any money.

This isnt only applicable on Binance but overall to exchangers yet these are businesses on the first place which they do need to profit and doing up things in all sorts as long it can generate or do benefit them.
Into their DEX which do require $100k doesnt seem to be decentralized at all and same as been mentioned above i do rather prefer ERC20 dex when we do talk decentralization.
They are just trying to blind people as if we arent aware on what they are trying to do.

[vit05]

It is not decentralized, and I do not believe that an exchange, whose purpose is profit, can create one. As already put, non-custodial is the correct word. And I believe this is a huge breakthrough. A huge part of the problems with exchanges is not due to the centralized book, nor the fees. But to the total control that the exchanges have on the Bitcoin of its users. No one knows for sure if they have enough liquidity and safety is always failing at some point.

Bringing to Bitcoin a good part of the banks' problems.

[figmentofmyass]

It is not decentralized, and I do not believe that an exchange, whose purpose is profit, can create one. As already put, non-custodial is the correct word.

is non-custodial even the correct word? you can hold your own private keys which control tokens on binance chain. what about actual cryptocurrencies like bitcoin or ether? i can't find anything about how interoperability between bitcoin and binance chain so i'm assuming you can only hold private keys to assets tokenized on the DEX. that means you're trading wrapped/tokenized crypto or tokens issued on-chain like BNB.

this is what ledger's web site says:

Trading pairs are made through the Binance Coin (BNB). You can trade this for tokens representing the actual crypto asset. For example, you can trade BNB for BTC.B – a token that represents Bitcoin.

can anyone explain what this means from a custody standpoint? everyone keeps saying binance doesn't have custody. so how are cryptocurrencies like bitcoin being tokenized on binance chain?

after that gets answered, we can address the fact that the "network" is composed of 11 nodes all run by binance......