The CEO of the Binance exchange ‘Changpeng Zhao,’ famously known to the crypto community as CZ, recently aforesaid that:
“Just had a productive meeting for the decentralized exchange ‘Binance [DEX]’, in which BNB would be used as a native gas, and therefore the exchange don’t manage user funds. Aiming for a public beta finish of the early next year. Yes, we work continuously even on Saturdays, non stop.”
However in the long run, CZ explained that users would be able to utilize non-custodial wallets to trade crypto’s during a peer-to-peer transaction with full management over their funds.
Adding further he explained:
“I believe that decentralized exchange is the coming future. I don’t recognize when this future comes. However. i feel we’re at an early stage for that thus I don’t recognize if it’s a year, two years or five years. I don’t recognize but we should be prepared for it.”
As a centralized crypto exchange, most of its revenues and profits are generated by the fees charged by the exchange. But, decentralized exchanges can also charge a native fee embedded into the sensible smart contracts utilised by the platform to broadcast transactions to the mainnet of public blockchain networks like Ethereum [ETH].
Last year in Oct., the co-creator of Ethereum [ETH] ‘Vitalik Buterin’ praised a model utilised by EtherDelta, a decentralized exchange, to incentivize developers for maintaining the platform.
Adding further, he added:
“I suppose the EtherDelta model for developers getting paid is underrated.”
At the time, a South Korean cryptocurrency user endorsed Binance to Buterin on Twitter, mentioning its low processing fees. Buterin responded that to use centralized exchanges, a method of setting accounts is needed. On decentralized exchanges, users could utilize other existing wallets for the trading purpose.
Mentioning further Buterin Added:
“That facilitates setting up an account. I would prefer EtherDelta exactly because it doesn’t. Simply visit the site with MetaMask plugin and begin using it. Not slow even a slightest. I don’t give a damn concerning split-second commerce. To me, speed includes login, deposit, withdrawal, logout time.”
According to CZ, Binance is considerably a more safer alternative to other decentralized exchanges attributable to its robust design and infrastructure. Binance has never been hacked since its launch back from the year 2017.
CZ emphasised that the real advantage of using a decentralized exchanges lies in the freedom and management over user funds. On a decentralized exchange, users don’t have to be compelled to create new accounts or file withdrawal requests. Each commerce activity is finished on the blockchain with a non-custodial wallet.
Eventually, along with the increasing adoption of cryptocurrencies and fiat becomes less relevant within the crypto exchange market, traders would probably shift away from the centralized platforms to the decentralized exchanges.
The Binance team remains unsure when this modification would be available but as per what CZ aforesaid, the exchange is preparing for it very soon.