Binance launches DEX Testnet

Screenshot of Binance DEX's dashbord of user's interface. (source: Binance Blog)

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Cryptocurrency exchange Binance released a testnet for Binance DEX, a decentralised order-matching engine powered by Binance Chain technology, enabling traders to create a wallet and begin exchanging tokens, according to a press statement by the Malta-based company.

“Binance DEX is a decentralised exchange with a decentralised network of nodes, where you hold your private keys and manage your wallet,” says Changpeng Zhao, CEO of Binance. “With Binance DEX, we provide a different balance of security, freedom, and ease-of-use, where you take more responsibility and are in more control of your assets,” he adds.

Binance Chain is a new blockchain and peer-to-peer distributed system developed by Binance and the community. Binance says DEX is a secure and native marketplace built on its blockchain, allowing the exchange of digital assets that are issued and listed on the DEX. “Matching happens within the blockchain nodes, and all transactions are recorded on-chain, forming a complete, auditable ledger of activity,” the press statement says.

Binance Coin (BNB), currently an ERC20 token, will be migrated to Binance Chain to become the native asset. Traders will be able to issue, send and receive new tokens on the blockchain, and also propose new trading pairs to list.

“Binance Chain has near-instant transaction finality, with one-second block times. This is faster than other blockchains today,” says Mr Zhao, noting that ether takes about 20 seconds and bitcoin averages 10 minutes for network confirmations, with the possibility of rollbacks that do not occur on Binance Chain. “With the core Binance Chain technology, Binance DEX can handle the same trading volume as Binance.com is handling today. This solves the issues many other decentralised exchanges face with speed and power,” the CEO says.

Binance DEX was announced to support proven secure and decentralised software and hardware wallets. Binance says that its Trust Wallet is fully integrated with the DEX, as well as the Ledger Nano S. The company says more wallets are planned to be supported over time.

“We’re working toward decentralised accessibility to cryptocurrency,” says Viktor Radchenko, Founder of Binance’s Trust Wallet. “We want users to have full control over their private keys, and easy access to decentralised applications, to maximise the potential and mainstream adoption of cryptocurrency. Binance DEX is one step further to realising our vision for greater freedom of money,” Mr Radchenko adds.

Binance was launched in July 2017 and is based in Malta.