Binance has been working hard on its own native blockchain called Binance Chain and decentralised exchange Binance DEX, and the exchange has announced this morning that both testnets are now online.

Binance CEO Changpeng ‘CZ’ Zhao retweeted the post, adding: “Just in time. Timing is everything!”

When plans of the testnet were originally announced in December, Zhao commented that there was a chance of the new DEX either running alongside the current platform or replacing it altogether.

CZ has also previously stated the DEX can accommodate all the volume on the main centralised and non-custodial platform today.

The new cryptocurrency trading standard is here

The use of Binance Chain makes it possible to send and receive BNB and other tokens, issue new tokens, propose trading pairs, and use orders to buy or sell assets. Most of this is possible because traders are the ones in charge of their own transactions, leaving custody to the investor.

Ultimately, the company aims to reach a one-second block time on its new chain. They are looking to do this while maintaining low fees and high liquidity trading across the platform.

Consumers can use the FAQ section on Binance Chain’s GitHub page to learn how they will be able to send orders and match and trade tokens.

Binance has said that orders should appear on the blockchain after a maximum of three seconds, as long as the order price is marketable. The whole chain offers impressive transparency, which allows anyone with knowledge of an address the ability to see anyone’s orders or balance.

Private key management 

As a reminder, Binance stated anyone who has a private key needs to protect it and store it in a secure location that is easy to remember. The company warned that once a private key for an address is lost, it cannot be retrieved, regardless of whether the loss was the result of hackers or simple human error.

Ledger has also formally announced support for the new network by saying: “You can now install the Binance Chain app through Ledger Live (Developer Mode) to access the decentralised exchange testnet with the Ledger Nano S.”

The link to get involved is: testnet.binance.org/

A step in the right direction for decentralisation 

Not everyone is convinced that Binance DEX truly qualifies as a decentralised exchange. Whale Panda compared the new project to the recently hyped JPM Coin that JP Morgan claims will use a permissioned blockchain.

In my opinion, a DEX is built on a scale between centralised and decentralised, and we have yet to see full decentralisation. What CZ is doing is a step in the right direction. Next, I hope to see the project listing barrier of $100,000 go down eventually to nothing to enable the next level of decentralisation for exchanges.