The company hopes to offer a much wider range of services without affecting the proper functioning and experience that users have had to date.
Binance, the operating platform of one of the most recognized international exchange services, yesterday announced the launch of its own Blockchain platform called Binance Chain, which will have a wide range of applications.
Originally Binance had only operated outside of Blockchain since transactions are settled by updating the order book stored in the company's servers. The token released by the company, BNB, originally operates in the Ethereum ledger but its only case of real use is within the platform, so these tokens are mobilized in the same way as the rest of the digital currencies within the service.
In the announcement made by the company reads:
After thoroughly investigating decentralized exchange frameworks and analyzing existing implementations, we believe that significant improvements can be made to provide Binance users with a level of business experience to which they are already accustomed. The centralized and decentralized exchanges will coexist in the near future, complementing each other and operating with total independence ".
Although this may sound a bit confusing, the company seems to be reporting that it plans to operate under a hybrid model, with which the user experience would not be affected.
Why launch a Blockchain?
The reason why the company makes the decision to launch its own Blockchain is read in the following lines:
As a public block chain, Binance Chain will focus primarily on the transfer and commercialization of Blockchain assets, as well as incorporate new properties for the future. Binance Chain will focus on performance, ease of use and liquidity. Binance Coin (BNB) will be updated so that it exists in its own main Blockchain, becoming a native currency. At the same time Binance will go from being a company to a community. "
Everything seems to indicate that Binance will launch a decentralized exchange service that will operate with its existing platform. In addition to facilitating the exchange of digital assets, the company may also function as a platform for the launch of new digital currencies through pre-sales campaigns (ICO).
After its announcement, the price of Binance Coin increased notably, going from USD $ 8 to USD $ 10.84. Today, when it's 6:00 a.m. in New York, it went down a bit and is at USD $ 9.40
It is worth noting that Binance is a platform currently known for its good management and for being successful in the face of unfortunate events, such as what happened with Viacoin and the cessation of activities that it had to face last month.
Critics believe that, with this initiative, Binance could aim to become the next Google of the cryptocurrency ecosystem, as it would bring a broad set of solutions and services for digital currencies in one place. However, the risk associated with excessive centralization and the reliance on a single entity for all the processes that it plans to carry out is also striking.