Binance is planning to launch its new decentralized exchange platform by the end of this year and it will have less control over the coins that will get listed on it.
The decentralized exchange will be called Binance Chain and according to a report, it seems that anyone or almost anyone will have the freedom to list a coin on the new exchange platform.
The decentralized exchange will have less control
Binance founder and CEO Changpeng Zhao told Bloomberg his team will have a small amount of control, at best, over the new platform.
“On the decentralized exchange we’ll have less control,” says Zhao.
“More likely anybody can list any coin. That’s the philosophy of the decentralized exchange, it’s freedom of choice, freedom of investments. But with freedom, there will be people who are scammers. That’s not something we can control.”
More processing power and higher fees
Zhao also said that Binance Chain will need much more processing power compared to the one that Binance currently needs and it will; be a slower platform which will also involve higher fees.
Decentralized exchanges allow users to trade cryptos by automating the process instead of relying on a specific centralized third party.
Users who are on decentralized exchanges don’t even have to create an account, share their name and other personal private data, these are the main benefits of decentralized exchanges.
Increased security for users
“Binance Chain will be attractive for those who value anonymity and security more than speed and liquidity, he said. Binance processes 1.4 million transactions per second and about $1.5 billion in volume daily,” Bloomberg reported.
Binance is also working on the default wallet to store user funds, and it will encourage developers to build competing products for the open-source platform. The software will be installed on users’ computers and remain under their control, according to Zhao.
This whole move comes after more and more crypto exchanges have become targets for cyber criminals because most exchanges are centralized with their assets in a single location.