According to a white paper released by Binance on the 17th of April this year, there had been considerable development on the new blockchain, which was smarter than the original version. This took place only a year after the launch of the blockchain Binance Chain. According to the company, the new version was supposed to work parallel to the existing chain. The exchange had mentioned in a company blog post that both the Binance chain along with the Binance Smart chain would allow swift communication and reliable transmission.
Moreover, the new technology will be a useful tool to transfer data from the Ethereum Virtual Machine (EVM) to the Binance chain. The white paper further elaborated that the Binance chain is expected to be faster and even cheaper than the Etherum Virtual Machine. EVM is presently known to be the biggest smart contract platform. The recent publication by Binance is one of the many announcements that have been made regarding bitcoin exchanges. As soon as Binance had released its blockchain last year in April, three more exchanges announced that they were building their blockchain.
The emerging trend of blockchain has put pressure on the crypto industry as they see it as a threat to decentralization, which is an important element in blockchain networks.
Why Blockchain?
Exchanges have been one of the biggest reasons why the cryptocurrency is becoming so popular. They are like a gateway in the cryptocurrency world and have risen to become a multi-million dollar industry today. It is reported that in the US alone, the revenue through exchanges was close to 1.3 billion dollars in the year 2018. According to the Block, Binance had managed to reach a profit of over $1 billion profit in the year 2019.
If you take a birds-eye view, the increase in the trend of blockchain is for bitcoin exchanges to strengthen their position in the market and to safeguard their businesses from external attacks. According to blockchain analysts, by creating their blockchain, companies operating in crypto exchanges are more likely to be able to expand and smoothen their market operations.
With every passing year, there are new updates in the blockchain technology Architecture
to attract traders. Here are some of the highlights:
1. Easy to Use and Reliable
Convenience is probably the biggest reason why blockchain is becoming a great contributor to exchanges. People looking for easy solutions without too many complexities are vested in blockchains. For example, if there is a company selling coaxial cables, it may decide to give their customers free samples so they can ascertain the quality of the company’s product. If the consumers are satisfied, they will place an order. This simple trick will be able to generate more leads and help the company get its hands on more business. Bitcoin exchanges are also aware of this technique and are using it to their advantage. They know how to attract people; however, the next part is a bit tricky, i-e., convincing consumers to accept the offer.
2. Smart Contracts Are A Win-Win
The use of smart contracts has made a massive difference in the blockchain industry. They have completely eradicated the need for the “middle man,” making transactions smooth and hassle-free. The biggest exchange companies are using smart contracts to automate their business transaction. Decentralized Exchanges (DEX) and Ethereum are using smart contracts to create new opportunities. This has helped companies achieve more in a short period.
3. Continuous New Innovations
The world of exchanges has enabled innovation. With the help of accurate branding and new marketing techniques, the exchanges can gain massive freedom in the innovation sector. The most renowned industry specialists like Binance and OKEx have managed to innovate and introduce new blockchain experience for their customers. If they don’t do this, their trader will eventually move to another exchange service.
Therefore, to keep themselves in the market, it is important to stay updated with the latest trends.
For example, if you are providing your traders with a set number of free tokens for a digital currency, wouldn’t it be like a new investment opportunity for them? Moreover, there are higher chances of them buying the tokens again. This will eventually lead to more investors buying tokens from you. Such tactics can improve the worth of your exchange company.
4. Opportunities for Pre-Sale
Companies that launch their digital currencies have ICO events on their websites as well. ICO events are, however, prone to scams and can be a reason for your clients rejecting your currency. As a substitute, IEO, along with other tokens, are used for sales. As part of this new strategy, it is a useful tactic to offer the closer community the tokens at lower rates. This gives a chance to create awareness about the event of a sale that you launch on your website (IEO or whichever you have chosen to launch). Having a private blockchain helps to give a sort of personalization to your most loyal customers and helps you achieve your sales targets easily.
What’s Next?
According to experts, the next thing in the world of exchanges in the native blockchain. Binance has been successful in introducing native blockchain services. Unsurprisingly Binance is the market leader in cryptocurrency exchange platforms and has been since it was first launched in 2017. This has enabled other exchanges to build their native blockchains to compete in the market. However, an alarming factor for blockchain companies is the fact that the newest technology is not entirely focused on decentralization. At the same time, this is an important element of bitcoin exchange platforms.
Summing It Up
Besides this point, it is pretty clear that native blockchain is the future of cryptocurrency and is highly recommended by experts. The benefits are equally valuable for both the owners as well as traders. Using the above information, you can develop your blockchain platform. Moreover, thorough research on the subject is also required - one that benefits you and your business. The world is looking forward to more convenient cryptocurrency exchanges that hold value to traders and consumers alike.
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