Binance CEO Changpeng Zhao has given the cryptosphere a sneak peek at the long-awaited Binance decentralized exchange (DEX) platform in a video posted on YouTube. Zhao also linked the video in a tweet posted on August 9, 2018.
Much Ado About Decentralised Exchanges
A decentralized exchange or DEX for short is a new type of crypto exchange platform that is rapidly gaining popularity across the cryptosphere because of its potential for reduced security risks and the absence of any centralized body that can shut it down or otherwise interfere with user transactions.
Ethereum cofounder Vitalik Buterin is one of the most outspoken evangelists for the growth of DEX platforms, recently stating that he would like for centralized exchanges to “burn in hell as much as possible”. To DEX proponents, they offer a crypto trading framework that is much more in keeping with the libertarian principles of cryptocurrency, removing all power to intervene in the market from platforms and giving all power to users.
Aside from Binance, other major crypto exchanges that have expressed an interest in developing platforms include Huobi, which announced two months ago that it intends to convert its entire platform into a framework.
Thus far, it is difficult to ascertain what level of success the different efforts to create exchanges have met, with some users complaining of long wait times and other transaction issues, leaving them with little practical choice but to continue making use of centralized exchanges for the time being.
As the world’s largest crypto exchange by volume, Binance has a long-standing interest in developing a decentralized framework, betting on its size and popularity to carry it through to market domination if and when it launches. Zhao’s video reveal is the closest the global crypto community has come to observing what a DEX effort from a true crypto heavyweight looks like.
The Binance CEO unveiled the demo video In a post on his twitter handle which said:
“A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance.”
The video depicts a series of basic interactions on the Binance DEX all carried out using the code on the Command Line Interface (CLI). No trace of graphic user interface (GUI) can be seen in the video, indicating that the platform is still very much a work-in-progress. It shows the process of listing, issuing and trading digital assets on the DEX
For the moment, it remains unclear exactly how Binance intends to proceed with its plans for a DEX, especially given a recent wave of embarrassing DEX hacks and bugs which have dented user confidence in the growing market niche. At the moment however, what is known is that the dream of fully decentralized crypto trading remains on course with Binance set to play a leading role.