DEX • December 5, 2018, 5:48AM EST
Published 1 hour earlier on
UPDATED: December 5, 2018, 4:48PM EST

Binance gives a sneak peek of its decentralized exchange

Read the non-AMP story on Theblock.co
The Block

Binance, the largest cryptocurrency exchange by volume, released a video Wednesday showing a demo of the upcoming Binance decentralized exchange (DEX). Binance DEX, which is set to launch in early 2019, is built on top of Binance Chain with a native Binance Coin (BNB) token, which will be migrated from an ERC20 token and act as the native gas. Binance Chain will use Delegated Byzantine Fault Tolerance (dBFT) as its consensus mechanism, similarly to NEO. 

The decentralized exchange will supposedly feature low latency, high throughput trading, as well as decentralized custody of funds. In addition, it will also allow projects to issue new tokens, meaning they can run an ICO on the Binance Chain and raise funds in BNB. The projects will then have direct access to liquidity on the DEX afterward. Even though Binance will get a small fee from each trade, it claims that the DEX will be maintained as a community project. (Source: YouTube)