Binance Set to Launch DEX in Q1 of 2019: What Will Change?
Decentralized crypto exchanges (DEX) is certainly not a new concept to work with. So far, we know that companies like Stellar and Waves launched their platforms and a decent amount of volume going between the DEX’s.
Most recently, we are well aware of the world biggest cryptocurrency exchange Binance’s plans for launching a similar platform. If you are the world’s biggest crypto exchange and centralized, your move for DEX is quite entertaining because it shows that you are thinking the future will be on the DEX’s.
Just like we thought, Binance CEO Changpeng Zhao said on Saturday:
“Just had a productive meeting for Binance DEX (decentralized exchange), where BNB will be native gas, and the exchange don’t control user funds. Aiming for a public beta end of the year/early next year. Yes, we work on Saturdays, non stop.”
Back in July, Zhao interviewed by CNBC’s Ran Neuner, and in that time Zhao said DEX will be the future of crypto exchanges. Binance CEO believes in the long term, people will want to have full control and freedom in their assets, which centralized exchanges unlikely to offer that kind of solutions. Zhao stated:
“I believe that decentralized exchange is the future. I don’t know when that future will come yet. I think we’re at an early stage for that so I don’t know if it’s a year, two years, three years, or five years. I don’t know but we got to be ready for it,”
In the centralized exchange model, we know that their revenues and profits are generated by the fees charged by the exchange himself. But, for DEX’s, there’s also a small amount fee of commissions although this will be required to protect and maintain smart contract’s functions.
Back in October last year, Ethereum co-founder Vitalik Buterin praised EtherDelta like model on Twitter, another DEX, Buterin said:
“I think the EtherDelta model for developers getting paid is underrated,”
At that time, one Twitter user offered Buterin to use Binance because of their low fees but Buterin suggested that the use of centralized exchange is quite difficult compared to DEX’s. He told the user:
That requires setting up an account. I like EtherDelta precisely because it doesn’t. Just visit the site with MetaMask on and start using it. Not slow at all. I don’t give a damn about split-second trading. To me, speed includes login, deposit, withdrawal, logout time.
Back to Zhao, he thinks that Binance will likely to be a more secure option for DEX’s given their time, experience and previous success in this cryptocurrency space. Zhao also said once again the freedom demand from users will drove the entire industry into decentralized exchanges and Binance certainly doesn’t want to miss the train.
Zhao also stated he couldn’t give any time to when will change happen but they will be waiting and ready for it.