The largest crypto exchange in the world, Binance, announced the development of its blockchain almost a year ago. Only recently, the exchange’s CEO, Changpeng Zhao, posted an announcement that the project, called Binance Chain, is preparing to launch its TestNet, indicating that the blockchain is nearing completion.
Finally got a date. Targeting to release Binance Chain testnet (@binance_dex) for public testing on Feb 20th. This is a testnet, your feedback would be most valuable.
— CZ Binance (@cz_binance) February 12, 2019
According to Zhao’s announcement, the TestNet will be released for public testing on February 20th. Zhao also urged anyone interested in providing feedback, as any insight into the users’ thoughts will be valuable to the further development of the project.
About Binance Chain
As mentioned, Binance announced that it has decided to start working on the development of Binance Chain nearly a year ago. The decision came after extensive research of decentralized exchange frameworks and analysis of existing DEXes. However, the exchange believed that DEXes still need work and improvement, although they have an enormous potential to coexist with centralized exchanges.
As per design, Binance Chain will be a public blockchain which will focus on trading and transferring of blockchain assets. The project will also work on high-quality performance, liquidity, as well as ease-of-use. The network will use Binance Coin (BNB) as its native token, meaning that the token swap should be expected at some point after the MainNet is launched.
Although, this is still in the future, and the first step for Binance is to see how is the TestNet going to behave.
The next step
If the TestNet proves to work properly, and the MainNet arrives soon, Binance will deal with BNB token swap, meaning that Binance Coin could leave ERC-20 token model in the following months. After that, the project could start focusing on the decentralized exchange, as they have shown an extensive amount of interest in the concept in early 2018.
The biggest issue with DEXes at that time was the lack of user-friendly elements and efficiency. This will likely be among the most polished areas when it comes to Binance’s future DEX. In the end, it appears that Binance’s vision of centralized and decentralized exchanges coexisting may begin in its own ecosystem, and spread out from there.
Recently, Binance launched their FIAT to crypto exchange under the brand name Binance Jersey.