Digital asset exchange Binance today announced the launch of its much anticipated decentralized crypto trading platform called Binance DEX.
This followed Binance’s launch of its proprietary blockchain – Binance Chain – last week, which will work as the backbone of the decentralized exchange.
.@Binance Chain/DEX related services;
– Web Wallet
– REST API
– Accelerated Nodes
Are now LIVE!
— Binance DEX (@Binance_DEX) April 23, 2019
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Commenting on this development, Changpeng “CZ” Zhao, CEO of the exchange, said: “We believe decentralized exchanges bring new hope and new possibilities, offering a trustless and transparent financial system.”
“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.”
Centralized vs decentralized
Decentralized exchanges are much closer to the core concept of blockchain than the existing centralized crypto exchanges. DEX platforms operate on a blockchain and do not store clients funds on the platform for the purpose of trading. Users can trade crypto assets directly from the funds stored in their wallets.
Binance, in the initial phase, has included support for an array of wallets including Ledger, Enjin, Magnum Wallet, CoolWallet, Coinomi Wallet, Atomic Wallet, ZelCore Wallet, Infinito Wallet, Math Wallet, Ellipal Wallet, Guarda Wallet, Exodus, and its native Trust Wallet to its DEX platform.
Though users of the decentralized exchange have access to the blockchain explorer, wallet, public data nodes, and even APIs, the exchange did not list any trading pairs on the new platform. The official announcement only specified that “trading will begin at a later date.”
DEX – the new trend in the crypto industry
Binnace’s market competitors are also in the race to launch a decentralized platform. Last month, Malta-based OKEx revealed its plans to launch a similar decentralized platform while Huobi is already on its way to evolving into a standalone DEX.
Meanwhile, Binance Coin, the native currency of the Binance Chain, is becoming very popular in the community and has gained more than 25 percent in the last 7 days, as seen on Coinmarketcap.com.