Binance CEO Changpeng Zhao recently held an “ask me anything” session in which he revealed new details about Binance Chain, the blockchain platform and decentralized exchange that’s being developed by the company behind the world’s busiest cryptocurrency exchange.
First off, CZ said Binance Chain will have a setup more similar to NEO NEO, -1.02% than a highly decentralized network such as Bitcoin BTC, -0.81% or Ethereum ETH, -0.85%. The Binance Chain testnet only has 11 nodes, with CZ saying the decision was made “mainly for performance reasons”.
Binance’s blockchain offering will be exclusively focused on the issuance and trading crypto assets:
“So, in the Binance Chain, there’s no smart contract. We just have an interface for you to issue tokens, and then you can trade it. Binance Chain is a very simple chain in terms of application, but it can handle very large loads. It is our opinion that the load is more important than the features.”
In a later answer, Zhao said that the upcoming DEX is capable of handling the same amount of trading volume that is currently handled by Binance’s main exchange. This is a drastic improvement over most existing decentralized exchanges, although there is obviously a discussion to be had about the effective level of decentralization of Binance Chain.
In order to be listed on the Binance DEX, projects will have to pay a listing fee – CZ says the fee will most likely be close to $100,000 in order to “reduce the number of spam or scam projects”.
As mentioned previously, the Binance Coin BNB, -2.69% token will function as Binance Chain’s native asset:
“Binance Coin on the Binance Chain is the same as the Ethereum coin on the Ethereum network. You will have to use it to pay for network transactions, as gas.”
Recently, BNB has been one of the best performers among the top 100 cryptocurrencies by market cap. The token is up by a very solid 55% in the last month thanks to excitement building up about the upcoming Binance Chain launch, the successful BitTorrent token sale, and other milestones such as Binance Jersey.