One of the world's largest cryptocurrency exchanges, Binance, launched its decentralized exchange yesterday after launching the main currency chain.
Binance DEX is an unmanaged decentralized exchange that operates on the Binance Chain blockchain protocol, allowing users to fully control their funds while trading encrypted assets, and these transactions are On the chain.
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Yuan Chang, CEO of Changan, said that the Binance DEX team has always been committed to the ideas put forward by cryptocurrency community developers to maximize the speed, scalability and efficiency of the platform.
During the test, many developers in the community contributed new features and ideas to the coin chain, which can be found on the main network. In the past few months, Binance DEX developers have been working hard to get DEX up and running as soon as possible. We are excited to introduce this platform to the community, and we encourage more projects to explore the currency chain to benefit from its speed and advantages.
Open up a new era of cryptocurrency trading, what are the shortcomings of DEX?
In the past few years, a number of decentralized exchanges have appeared on multiple blockchain networks, including Ethereum, with the same goal of providing a platform that allows users to control their own funds simultaneously. Encrypted currency.
However, the main issues facing DEX are the limitations of the user experience (UX) and user interface (UI).
Although the auto-control of the private key is enough to attract traders from a centralized platform to DEX, if UI and UX make users intolerable, the appeal of DEX will decline.
This problem may eventually lead to a decline in user activity, which leads to liquidity problems.
Coinbase co-founder Fred Ehrsam once said:
(DEX) is defective. DEX requires users to manage their own funds and ensure the security of related tools, but the timing is not yet mature. At present, DEX has low throughput and faces the same scalability challenges as its underlying blockchain, so companies that don't want to wait too long and pursue high throughput will be more centralized for quite some time. Exchange.
The key to DEX's success is at least in keeping with centralized exchanges in terms of UI, UX, scalability, and efficiency that are difficult to implement in a decentralized environment.
Efficiency, especially in trading activities, is crucial because if the exchange is congested and the order cannot be executed, the trader may suffer losses.
Since data is processed through a point-to-point protocol, such problems always occur in DEX or any blockchain-based application.
In the official statement, the Coin Security team confirmed that in the testing phase of the Coin Chain Blockchain Agreement, it handled approximately 8.5 million transactions in the simulation environment, which was sufficient to handle the large demand from traders.
Zhao Changpeng also added that the Binance DEX team will continue to work closely with other projects and teams to promote the development of the DEX ecosystem and provide users with greater control over their own funds and assets.
We believe that decentralized exchanges bring new hopes and possibilities and provide a financial system that is trustworthy and transparent. Without central agency trust funds, Binance DEX brings greater asset control. We hope this will bring a new level of freedom to our community. We will work closely with other projects and teams to promote the development of the entire ecosystem.