Binance which is one of the largest crypto exchange of the world referring daily trading volume will launch their beta version of its decentralized exchange (DEX) in early 2019.
CEO of Binance Changpeng Zhao recognize in the communities as CZ, said, “Just had a productive meeting for Binance DEX (decentralized exchange), where BNB will be native gas, and the exchange doesn’t control user funds. We are aiming for a public beta end of the year/early next year. Yes, we work on Saturdays, nonstop.”
CZ stated in one of the live show that the decentralized exchange is the future of crypto. He further added that in the long run, the user would be able to utilize noncustodial wallets to trade cryptocurrencies. It will give more control over the peer to peer fund transactions.
He further stated that “I believe that decentralized exchange is the future. I don’t know when that future will come yet. I think we’re at an early stage for that, so I don’t know if it’s a year, two years, three years, or five years. I don’t know, but we got to be ready for it”.
In general, a centralized cryptocurrency exchange, generate most of their revenue and profits through a fee charged by the exchange. However, a native fee is embedded inside the smart contracts of decentralized exchanges which is most efficiently utilized by the platform to broadcast transactions to the main net of public blockchain networks like Ethereum.
A decentralized exchange EtherDelta is the most effectively utilized model developed by the Ethereum co-creator Vitalik Buterin. It offers better incentives to developers for maintaining the platform.
He further added, “I think the EtherDelta model for developers getting paid is underrated.”
A Cryptocurrency user of South Korea referred Binance to Buterin and advised that it has low 0.05% processing fee. Buterin responded that to process on centralized exchanges, the user must have a dedicated account for transactions. However, on decentralized exchanges, the user can utilize existing wallets like MetaMask to trade.