Insiders have spoken out: Binance is set to become the world’s first decentralized platform in the very near future. The speculation comes primarily from Binance Coin investors, who now believe that Binance will migrate the entire company value to its native digital coin; all of this is expected to happen within five years.
Binance Coin or BNB, has seen tremendous increase in its value, going from around $6 to more than $15. This price rise has made BNB the seventh largest digital coin by market cap. According to press, Binance will move the cryptocurrency from the Ethereum network to the native blockchain of the company, Binance Chain. The testnet launch happened last month.
What will happen is that Binance Chain will serve as core for Binance DEX (decentralized exchange). The new platform is poised to deliver high-throughput trading, all of which will be possible as fees will go directly to the Binance Chain validators. Binance is certainly working towards creating an open, decentralized financial system.
The success of Binance is primarily owing to the diverse cryptocurrency offerings and crypto-to-crypto pairs. This was particularly favored by investors who like to exchange Bitcoin and Ethereum for other alt coins with ease.
As reported by Daily Hodl, Tushar Jain, a managing director at the crypto hedge fund Multicoin Capital, commented on the why the BNB plays such an important role in the development of the new decentralized exchange, focusing on some of the special features of BNB:
The Binance token is an interesting hybrid of many different use cases. The first use case is really that of a discount token in that if you pay your trading fees on Binance the centralized exchange, or the Binance Chain DEX, in BNB tokens, you get a discounted rate. And this incentivizes traders to hold BNB tokens in their accounts, and use them to pay for their trading fees in order to pay what is a substantially discounted rate