For the past few months, crypto has been going through a rough patch. It has been under constant pressure from all sides, falling in prices along with government crackdowns that have dampened investor confidence. This has resulted in many companies shutting down due to losses, and for those who are still running, bringing in profits is a huge task. Companies have been trying to bring in new customers as a strategy to increase profits. This is mostly achieved by increasing accessibility and expanding into new markets. After offering services like card payments and fiat to crypto exchange to attract customers, Binance is now testing their decentralized exchange Binance DEX.
Binance announced on Wednesday their new platform, a decentralized exchange called Binance DEX, which is now available for public testing. Users have the ability to create their own wallets and also interact with the trading platform interface. The company also revealed blockchain explorer for the testnet of Binance chain, a proprietary public network. The DEX runs on binance chain, it enables traders to participate as individual nodes and allows them to hold their own private keys to crypto assets. Binance has been eyeing to release a decentralized exchange for some time last year. The plans for it were released and now the testnet is available for testing. While the launch of the testnet is a big step towards a final roll-out of decentralized exchange, Binance said it is now waiting for feedback from the crypto community before it can decide on a timeline for the final launch.
Since the inception of the idea of decentralized exchanges, the demand for them has grown but still, not a single project has made it successfully. One of the main reasons is that no one will switch to a decentralized exchange just because they are decentralized. These exchanges have to be as good as the existing ones while offering something substantial to attract users. Binance DEX has all the features of centralized exchange like scalability and speed but also allows the user to control their own assets. Binance chain, on top of which Binance DEX is built, is focused on scalability and speed. It provides one-second block times and a large transactional capacity. All of this has led to the price of Binance coin (BNB) to rise by 76 percentage.
While most others in the industry are trying to cut down on cost by scaling down operations and cutting down staff in order to stay afloat, even in the bear market condition, Binance is expanding, and that too really fast. This at first glance might seem a bit strange, but for a company like Binance which is fully invested in crypto, this presents a perfect opportunity to expand and establish itself as a recognizable brand in this new space. Recently, the company announced a platform to buy and sell crypto with fiat, Binance Jersey. The company also announced that they will support the purchase of crypto assets with Mastercard and Visa credit and debit card. Binance is not letting any stone unturned, from card purchase to decentralized exchanges, they are going all in. This is good for the industry as a whole. More innovation is going to add to the momentum towards mainstream adoption of crypto.
A new trend that has emerged over the last year is the shift of focus from prices in the short term. Now companies are focusing on developing infrastructure and making crypto more accessible. There are two sides to this story, first is that when the prices recover, these investments will pay off; second is that these developments will push for mainstream adoption thus causing a recovery in price.
Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news