Binance Launches Its Decentralized Exchange Testnet

Changpeng Zhao, the Founder and CEO of Binance, recently spoke to cryptocurrency and blockchain enthusiast, Ivan Liljeqvist in an interview, about listing and delisting coins on its platform, the standards that are to be met and above all, regarding the launch of Binance’s Decentralized Exchange Testnet. Binance, which is a mostly centralized entity, is slated to make its foray into the DEX space after releasing its first version. Talking about supporting decentralized exchange without even being one, CZ said:

“I think we have listed no less than seven decentralized exchange coins”

CZ has also admitted that any one of them could easily manage to disrupt the centralized system run by them and highlighted the aspects of security, ease of use and freedom rather than setting decentralization, as the goal of his work.

When asked about the DEX’s profitability, the CEO asserted that,

“DEX may not generate a lot of revenue for Binance.com because the nodes will be decentralized and we don’t own most of them. But it is likely to increase utility and hence the value of the Binance coin and we still have decent number of Binance coin ourselves.”

CZ further said that DEX, which is a unique offering of the centralized exchange, is technically fully decentralized. He said:

“Users hold their own private key and the network never has access to the key.”

He also made public the knowledge that the mainnet runners for the DEX have not been decided yet. However, in the case of the testnet, all the nodes will be run by them in order to understand its workings. Binance Chain will be used by the DEX in order to render instant transaction confirmation for a similar trading volume. The exchange had earlier argued that their native Binance coin [BNB] will be shifted to the Binance Chain, which so long had been trading on the Ethereum blockchain.

CZ also said,

“You can issue token, you can trade them, submit your proposals to get your coin listed on the DEX and the nodes will vote for you.”

As of now, more than 8 tokens have confirmed their migration into the Binance Chain from ERC 20.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.