Many attribute this to the high standard upheld by the exchange; Binance.com is proving itself to be a responsible and discerning marketplace. Each coin undergoes a selective process to determine listing eligibility.
Others claim the growth is due to Binance’s new decentralized sister exchange, soon to be released in 2018 and also using BNB as a medium. Huobi Pro’s HADAX has seen significant increase in volume and number of listed coins, and there’s no reason to believe that Binance Chain will be any different.
While many investors and traders are anxiously awaiting the rollout, there will be a few major differences between Binance Chain and Binance’s main platform.
More coins: The Binance crew will have much less, if any, control over what coins get listed. This is the nature of a DEX. “Most likely anybody can list any coin” founder CZ stated in an interview with Bloomberg.
While this sounds like a bonus to crypto enthusiasts, it’s important to remember that CZ and Binance currently choose to list only projects they believe have integrity. So the decentralized counterpart may be lacking in quality tokens compared to what you are used to.
Slower, with higher fees: According to CZ, the DEX will require much more processing power. At least until significant improvements in tech, expect a snail’s pace and heavy cost.
Less customer support: By nature, decentralized exchanges are automated. While Binance.com is known for superb customer support, be prepared to handle your own issues when using Chain.
In general, DEX’s are made to be community-run, open-source marketplaces. They are meant to work outside the control of a central authority. This means they can’t be shut down or otherwise censored. While Binance Chain will likely be more user-friendly than other DEXs like IDEX or EtherDelta, don’t expect the same quality experience as their flagship.
However, since decentralized exchanges operate through a peer-to-peer blockchain, you can rest easier knowing that your assets are distributed among thousands of nodes instead of sitting in a central location. All thanks to the security of cryptography.
Author: Jeffrey Byron
Los Angeles News Desk
