Binance Coin, the native currency of Binance exchange has been able to pull through the bear attack during this cold cryptocurrency winter and is sitting impressively on the back of a 75% price pump upwards over the past one month.
It was recently announced by the CEO of Binance Exchange, Changpeng ‘CZ’ Zhao, that the cooperation has decided to take off their organization’s native token off Ethereum’s decentralized network as they prepare to launch their own dedicated Binance decentralized exchange or DEX.
On February 12, Changpeng Zhao tweeted through his official Twitter page that a date has been fixed to launch the Binance chain testnet [Binance DEX] and asked all his followers for feedback.
In a recent live stream interview, CZ discussed a few fundamentals of the forthcoming decentralized exchange and said that the launch date for a testnet was imminent.
“I think for the testnet right now we elected to run eleven test nodes. I think any number is fine. The number of validators in our network will be small mainly for performance reasons. So it will not be as big as the Bitcoin network with thousands of nodes. It is going to be more like NEO…or even Ripple…smaller number of nodes and each node will be rather large.”
He also mentioned that the Binance chain will not have any smart contracts and that they will integrate an interface for the user to issue a token with which trading will be enabled.
The DEX is supposedly very similar to the current Binance exchange, but it comes with all the benefits which are usually associated with a decentralized network with respect to trading and personal ownership of private keys with a higher influence on security. Moreover, the CEO also announced that the listing fees for new cryptocurrencies would be close to $100k. This was kept with the purpose of discouraging future potential scam coins, said CZ.
The Binance DEX has also decided to integrate Delegated Proof of Stake(DP0S) into the Binance Chain.
A DPoS-based blockchain comes with a voting system where stakeholders outsource their work to a third-party. In simple terms, they will be able to vote for a few delegates that will secure the network on their behalf.
The DPoS algorithm’s purpose is to directly create a voting system which is dependent on the delegate’s reputation. If an elected node malfunction or misbehaves, it can quickly be removed and replaced by another one.
The DPoS blockchains in terms of performance are more scalable and are able to process more transactions per second (TPS) then the existing PoW and PoS.