After months of development, and a false-start or two, Binance’s DEX testnet is set to launch on Wednesday 20th February, 2019…
In an announcement posted to the Binance website on the 18th February, the rationale for the DEX, and Binance Chain more broadly, was made clear by CZ, the exchange’s CEO. Framed as a means to expanding the ‘freedom of money’ that cryptocurrency can offer, the announcement places emphasis on the lack of personal identifiers that are required when participating on a decentralised exchange (DEX), which will likely be popular with some cryptocurrency users given the recent proliferation of KYC and related restrictions on centralised exchanges.
The announcement goes on to explain why Binance is in a position to outdo rival DEXs, emphasising their proven track-record in supporting ‘a couple of thousand’ transaction per second on their existing exchange offering. CZ assured Binancians that the DEX would be able to facilitate a similar level of volume, at the expense of a feature-rich experience to begin with.
Interestingly, CZ explains in the announcement how users will be able to interact with the Binance Chain; not only through creating wallets, but by issuing tokens and even proposing trading pairs.
To begin with, the DEX will have 11 test nodes which will be arranged in various configurations until an optimal combination is derived. For now, the DEX is being driven by Binance’s team, though CZ is keen to point out that in the future the chain’s “governance will be community-driven”.
BNB Price Responds
Since the announcement Binance Coin (BNB), which was already seeing steady growth, has appreciated in value significantly.