The biggest crypto exchange on the market will soon be launching its own blockchain. CEO Changpeng Zhao from Binance told Forbes Asia that Binance Chain will be launched ‘in a couple of months’. This blockchain will be used to host tokens in the same way that Ethereum is being used, and it will be incorporated into the exchange to pay for trading fees.
Currently Binance’s native token (BNB), that’s being used on the exchange, is an ERC-20 token. It’s current purpose is to help users save on trading fees. In short: it provides a discount on trading of 25% if you pay using BNB.
The news about launching their own blockchain, did BNB well. The coin went up 7.91% in the past 24 hours. This stands out from the crowd, because most of the market is down a couple of percent.
Binance wants to introduce its own blockchain to speed up the trading process. In the past the Ethereum network has been congested for a period of time, causing fees and confirmation times to go through the roof. Currently Binance is also working on introducing a decentralized exchange (DEX), but there’s no estimate on when that will be yet.
Also published on Medium.