TheCEOof the Binance exchange ‘Changpeng Zhao,’famously knownto the crypto community as CZ, recently aforesaid that:
“Just had a productive meeting for the decentralized exchange ‘Binance [DEX]’,in whichBNBwould be used as anative gas,and therefore theexchange don’tmanageuser funds. Aiming for a public betafinishof the early next year. Yes,wework continuously even on Saturdays, non stop.”
However in thelong run, CZ explained that userswould be able toutilize non-custodial wallets to trade crypto’sduring apeer-to-peer transaction with fullmanagementover their funds.
Adding further he explained:
“I believe thatdecentralizedexchangeis the comingfuture. I don’trecognizewhen this futurecomes. However.i feelwe’re at an early stage for thatthusI don’trecognizeif it’s a year, two years orfiveyears. I don’trecognizebutwe shouldbepreparedfor it.”
As a centralized crypto exchange, most of its revenues and profitsaregenerated by the fees charged by the exchange. But,decentralizedexchanges can alsocharge a native fee embedded into thesensible smartcontractsutilisedby 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 modelutilisedby EtherDelta, adecentralizedexchange, to incentivize developers for maintaining the platform.
Adding further, he added:
“Isupposethe EtherDelta model for developersgettingpaid is underrated.”
At the time, a South Korean cryptocurrency userendorsedBinance to Buterin on Twitter, mentioning its lowprocessing fees. Buterin responded that to use centralized exchanges, amethodofsettingaccounts isneeded. Ondecentralizedexchanges, userscouldutilize other existing wallets for the trading purpose.
Mentioning further Buterin Added:
“Thatfacilitatessetting up anaccount.I would preferEtherDeltaexactlybecauseit doesn’t.Simply visitthe sitewith MetaMask pluginand beginusingit. Not sloweven a slightest. I don’tgive adamnconcerningsplit-secondcommerce. To me, speed includes login, deposit, withdrawal, logout time.”
According to CZ, Binanceis considerablya moresaferalternativeto other decentralizedexchangesattributable toitsrobust designand infrastructure. Binance hasneverbeen hacked since its launch back from the year 2017.
CZemphasisedthatthe realadvantageofusing adecentralizedexchanges lies in thefreedom andmanagementover user funds. On adecentralizedexchange, usersdon’thave to be compelled tocreate new accounts or file withdrawal requests.Eachcommerceactivityis finishedon the blockchain with a non-custodialwallet.
Eventually,along with the increasingadoption of cryptocurrencies andfiatbecomes less relevantwithin the crypto exchange market, traderswouldprobablyshift away from the centralized platforms to the decentralized exchanges.
The Binance team remainsunsurewhenthismodificationwould be available butas per what CZaforesaid,the exchange ispreparingfor it very soon.