Binance Decentralized Crypto Exchange Launches Testnet

Announcements, News | February 20, 2019 By:

Binance, the world’s largest cryptocurrency exchange, has launched the testnet of its decentralized exchange, Binance DEX.

Binance DEX, the first use case of the company’s own blockchain Binance Chain, claims to offer faster transaction times and cheaper fees than ethereum due to its simplicity. The testnet launch means users can now create wallets and start exchanging tokens on the platform. It supports secure decentralized software and hardware wallets, including Binance’s Trust Wallet and the Ledger Nano S. The company said that more compatible wallets will be added in the future.

Changpeng Zhao (CZ), CEO of Binance, said that Binance DEX is a decentralized exchange with a decentralized network of nodes, where users hold their own private keys and manage their own wallet.

“Binance Chain has near-instant transaction finality, with one-second block times. This is faster than other blockchains today,” said Zhao. “With the core Binance Chain technology, Binance DEX can handle the same trading volume as is handling today. This solves the issues many other decentralized exchanges face with speed and power.”

Earlier this week, Binance announced that Binance Coin (BNB), an ERC20 token and one of the top ten cryptocurrencies by market cap, will be migrated to the Binance Chain to turn it into the blockchain’s native coin to be used for blockchain fees and other transactions.

‘We agree that Binance Chain and Binance DEX should start with functions that allow for the exchange of assets,” the exchange said at the time. “Binance DEX will allow you to send and receive Binance Coin (BNB) between different addresses. You can issue new tokens on the blockchain, which you can then send, receive, burn, mint, freeze, or unfreeze. In addition, any participant in the chain can propose the trading pairs they want to see and, with enough support, start trading in that exact pair he proposed.”