Text /31QU Xiao Ping
The strong upward trend of the currency security is impressive.
At the beginning of the year, the currency restarted the Launchpad IEO model, and other exchanges followed suit, leading a wave of bull markets. The currency platform BNB has more than doubled in five months, reaching a record high of $34.21. Among the top ten cryptocurrencies in the market value, BNB is the only cryptocurrency that deviates from the bitcoin price trend.
The currency has always firmly held the head of the exchange. According to the calculation of The Block, the net profit of the company in 2018 is about 446 million US dollars. In the first quarter of 2019, it rose to $78 million and net profit increased by 66%.
However, the currency security seems to be unsatisfied to become an exchange, relying on the centralized exchange to become a bigger and stronger currency security, with strong industry resources and mobilization, and then began to explore decentralized exchanges and public chains.
Along with the currency security DEX, the currency security chain and the cryptocurrency derivatives , a clear and visible digital currency eco-text map is emerging.
Coin security DEX and coin chain online
On April 18th, the currency security announcement issued that the main chain of the Binance Chain was launched. Five days later, the currency chain was officially launched; and as the first project to run on the currency chain, the Binance DEX was officially launched.
According to public information, the coin chain is a public chain launched by the currency security. Its primary task is to serve the coin security DEX, and realize the chain trade of the coin security DEX with its strong performance advantages.
After the currency online main line, the currency bill (BNB) will be transferred from the ERC20 token of Ethereum to the main chain of the currency chain. As the base currency of the currency chain, BNB will play the role of ETH on the Ethereum. It is the “fuel” consumed by the currency chain, the transfer, and the transaction. Any operation on the chain requires the consumption of coins.
In fact, on the day of the announcement of the main network, the BNB rose by as much as 11%. It jumped on the road in the next few days and set a record high of $25.
BNB began to carry more value. Along with this, some of the original Ethereum ERC20 projects have announced the migration to the currency chain.
Mithril was the first person to eat crabs . Mithril is a decentralized social media platform built on Ethereum. This migration to the currency chain and DEX means that the token MITH will be converted from ERC20 to the basic format of Binance Chain – BEP-2 format. .
After the migration is completed, the Currency Exchange has added two trading pairs, MITH / BNB and MITH / USDT. We found that as long as the project announced that it would move to Binance DEX, it would gain a lot of gains in the short term.
After Mithril went online, the effect was also immediate: MITH prices soared, up 70% from the lowest level in December 2018.
After Mithril, there were red Pulse Phoenix, Atomic Wallet and other projects moved to the currency chain. The most direct effect was that the price of the tokens rose, and the increase even reached three digits.
For example, after the market intelligence platform Red Pulse Phoenix announced the transfer of PHX to the currency chain, it rose nearly 19% in an hour; the wallet project Atomic Wallet has risen more than 570% in the week before the migration.
However, in addition to the currency price, what can the coin chain bring to the project?
From centralization to decentralization
As early as last year, the currency chain has begun to brew.
In March 2018, the currency security first announced the development of the currency chain. In December last year, Zhao Changpeng officially revealed for the first time at the first Forbes Asia Forum that he would launch his own public chain “coin chain”, which will have millions of projects to issue coins on the public chain.
In February of this year, the currency security officially launched the online currency chain and the currency security DEX (decentralized trading platform) test network. At present, the world of cryptocurrencies is dominated by centralized exchanges.
However, centralized exchanges are vulnerable to hacking, and self-stealing has occurred from time to time because attackers can get the most out of attacking centralized exchanges with minimal effort and expense.
A hacker who manages to break into a centralized exchange system can arbitrarily grab a large amount of cryptocurrency, just like a bank robbery. In addition, centralized exchanges are faced with uncertain supervision, and opacity leads to the possibility of price manipulation. Recharge and withdrawal require inconvenient platform review.
Just a while ago, the theft of 7,000 bitcoins on the Currency Exchange also once again proved to us that the promotion of decentralized exchanges is imminent .
Using decentralized exchanges, users directly use their wallets to hold their own assets, transactions are carried out between users' wallets, assets are not vulnerable to hackers, and users do not have to worry about platform running, supervision, price manipulation, currency charging, and Better security, such as coin restrictions.
However, due to the poor ease of use of decentralized exchanges, the slow speed, and the lack of transaction depth, users still tend to choose to use centralized exchanges.
But will the strong layout of the currency security DEX change this situation?
It is worth mentioning that, in the lack of selection standards, the currency Ian opened the IEO model this year, screening a series of projects for investors, in addition, there are new projects on the market.
With the launch of the currency security DEX, the role of the currency security will also change, and the currency gatekeeper will encourage more projects to go online. According to Ted Lin, chief growth officer of the company, Binance DEX's shelf standard will be relaxed overall, at least "10 times more", which will undoubtedly bring more possibilities.
At present, there are more than 150 kinds of digital assets in the currency transaction. According to the minimum of 10 times, we can conservatively estimate that more than 1,500 digital assets will be on the market.
The loose currency mechanism will stimulate all major project parties to actively participate in the on-shelf currency DEX, which will undoubtedly greatly promote the process of decentralized exchanges. As the world's largest exchange, with the world's largest liquidity and trading depth, a large number of on-board effects will inevitably lead to exchange liquidity and trading depth, and liquidity is one of the biggest difficulties of DEX.
Obviously, the traffic effect of the currency security is fatal to the attraction of the project side. A responsible person behind the stable currency PAX company Paxo said,
“The size and volume of the currency exchange is very influential. It is of great significance to have a stable currency in the currency.”
Although the standard for the addition of the currency to DEX is relaxed, the entire process is transparent. The project side will need to spend 2,000 BNBs in this process, and the review and final decision will be decided by the community.
Going forward and following the online currency chain, only for traffic?
In the currency circle, if a project promises in the white paper, it will definitely go to the currency exchange after the currency is issued, and the project will become a contested project.
Undoubtedly, the upside of the currency means a huge amount of traffic, and it has an irresistible charm for the project side. Even projects that compete with the currency DEX are hard to resist this temptation.
The decentralized exchange ChangeNow is a member of the first-time currency security. When it comes to why the money is on the market, its public relations manager Pauline Shangett believes that the currency chain has a choice to maintain diversity while resisting market trends. And fluctuations.
According to Pauline Shangett, public relations manager at ChangeNow, a decentralized exchange,
“Coin chain is the strongest and trend leader in the encryption market, and has great potential. Therefore, we have moved the project to the currency chain and issued the token NOW that meets the BEP2 standard of the currency platform, while retaining Tokens in the ERC-20 format. If the token exists in more than one public chain, it will have the characteristics of diversity and decentralization, which is more decentralized and therefore more resistant to market trends and fluctuations."
In fact, projects that join the currency security chain can also receive “welfare” beyond traffic.
For early adopters, the currency chain will provide additional marketing and support.
Zhao Changpeng said, “The early projects of the migration currency chain will receive additional support from Binance.com, including marketing, promotion and project evaluation from the official currency. A large part of it belongs to the first wallet supporting the currency chain. ""
However, we can't help but ask, are these projects that are coming to the flow and going to the subsequent currency chain, is it really a long-term solution?
In fact, Reddit users have questioned this before. If a Dapp is completely migrated to the currency chain and its services are not affected, then it means that the token does not exist from the beginning. It can be further inferred that this project may be just a project that exists for financing.
Why do you say that?
The netizen further explained that the coin chain is a public chain without smart contract functions, so there is no unique programmable asset.
While Ethereum is Turing-complete, that is, with smart contracts, smart contracts mean that in addition to transfer, you can customize the unique features through smart contract programming, allowing Dapp to extend other functions based on this platform.
If the original ERC 2.0 token on Ethereum can be published in a “B-token” format, it can be published on the currency chain. In this case, the token can use the BNB transaction pair to obtain the flow. Sex, on the other hand, it also has programming features that still exist on the main chain of the Ethereum.
However, if a project is completely migrated to the currency chain to host its own token, and the service provided by the migration is not affected, it means that the token does not exist from the beginning, and may just be encrypted to avoid supervision. Financing, which in turn should raise doubts about the legality or motivation of the project.
If a token cannot be programmed with a custom function, then there is no reason for it to exist, and its purpose is likely to be just to raise funds in an unregulated situation .
Wild vision of digital ecological layout
Compared with Ethereum, the advantage of the coin chain is that the transaction has a faster confirmation speed, which can basically reach one block in 1 second. With the technical advantages of the currency chain, Binance DEX can achieve the same transaction volume as the currency security centralization exchange. This solves the speed and performance issues faced by many decentralized exchanges.
According to Zhao Changpeng, “Sending tokens will be confirmed within one second and will be final.”
After being applied in some e-commerce businesses, it even reached the speed of “faster than traditional payment methods”, Zhao Changpeng added.
In fact, as more and more projects migrated to the currency chain, the market once thought that the currency chain would pose a threat to Ethereum, called the “Ethereum Killer”.
However, Zhao Changpeng responded that the coin chain does not support smart contracts, so it is not the so-called "Ethereum killer."
Although the coin chain guarantees faster speed, better experience and usability, there is no smart contract function, which means that the token type and quantity of the coin chain will be greatly limited.
However, the coin chain does not currently support smart contracts, and does not mean that smart contracts are not supported in the future. At present, based on the coin chain built by Cosmos, it is not difficult to build a public chain supporting smart contracts in the future by Cosmos.
In fact, the recent series of continuous movements from the centralized exchanges, the decentralized exchanges to the public chain, we can glimpse the wild vision of the currency assets in the ecological layout of digital assets .
To sum up briefly, the bigger and stronger centralized exchanges provide support for the decentralized exchanges. In order to build a high-performance decentralized exchange, they have made a public chain, in order to support the public chain, and through decentralized transactions. The traffic effect of the company promotes its own public chain, that is, the early project of issuing money on the currency chain, and can obtain the priority of the priority coin.
Undoubtedly, in view of the current crazy development speed of the currency, the currency has been brewing the ecological layout of digital assets. Therefore, we can guess that Zhao Changpeng’s "coin chain is not an Ethereine killer" may be just a kind of public relations. The set of words is just not representative now, but the future may be.
These projects, which went on the succession of the currency chain, can gain a lot of exposure and jump in the short-term use of the traffic effect of the currency platform, but we can't help but ask, what happens when these short-term traffic effects are exhausted?
In addition to the currency price, what can the currency security bring to the project side?
After all, in the long run, the landing and large-scale adoption of the project itself is a solid land for the future.