Binance.com has announced its new decentralized trading platform, called Binance Chain, will be available by the end of 2018. According to the official announcement, almost anyone will have the capability of listing a coin on the new exchange.
Binance’s founder, Changpeng Zhao, has said that the Binance Chain team will have significantly less control than they do over their current centralized platform. Zhao was quoted in an interview with Bloomberg earlier in the month, saying:
“…That’s the philosophy of the decentralized exchange, it’s freedom of choice, freedom of investments. But with freedom, there will be people who are scammers. That’s not something we can control.”
Zhao went on to speak with CNBC, where he said that it is only a matter of time before decentralized exchanges become so popular that they take over their centralized counterparts – but traders should not expect the transition from CEX to DEX to occur overnight:
“I believe that decentralized exchanges are the future. I don’t know when that future will come here yet. I think we’re at the early stages for that. I don’t know if it’s a year, two years, three years, five years – I don’t know. But we’ve got to be ready for it. We’re now actively investing our efforts, our time into it. We have a dedicated team working on this. I’m hoping to see a working prototype in a couple of months.”
For Bitcoin and other cryptocurrencies to remain true to Satoshi’s original concept, it must remain decentralized and trustless. Investments must be not be associated or backed by the government, meaning they should not be deposited on centralized platforms.
While Binance Chain has power in its popularized name, only time will tell if traders will trust the platform as a decentralized operation. It is likely the community will flock to new projects, like LQDEX.com, which promises to be a user-friendly inter-blockchain trading platform.