Binance Introduces new Blockchain

binance blockchain

On Tuesday, Binance cryptocurrency exchange announced that it is starting a public blockchain to promote the production of a new decentralized exchange.

Binance said the move marks the beginning of a plan to transition from “a company to a community” by developing its new Binance Chain, which will be used to transfer or trade different blockchain assets. Also, the cryptocurrency exchange declared it would permanently shift its Binance Coin (BNB) to its original blockchain (at the moment, the cryptocurrency is an ERC20 token that runs on the ethereum network). It’s unclear, however, if there will be some sort of token swap for traders who hold Binance’s ERC-20-based token.

In turn, the token would be the foundation for a blockchain-based asset exchange, an option that would exist beside Binance’s more centralized services.

The official statement released by Binance read:

“We believe significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed. Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.”

The development comes a day following Binance’s statement on a bounty program to track down the hackers who tried to steal funds from its users lately. The exchange said it had set aside 250,000 USD worth of its cryptocurrency, BNB token, for the first person who gives any valuable information that can lead to the apprehension of the perpetrators.

Unsurprisingly, the price of the exchange’s BNB token has increased more than 20 percent after the announcement, according to data made available by CoinMarketCap. While it traded sideways at about 8 USD for the past several days, it surged to a peak of around 10 USD in the last two hours. As at the time of writing this report, a token of BNB is trading at about 9.70 USD.

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