How cryptocurrency exchanges build their blockchains defying DeFi

In 2019, exchanges were preparing to launch their blockchains, but so far only the Binance exchange has been able to launch mainnet.

2020 will be the year when the blockchains of other exchanges will also enter the mainnet stage and will try to find their place and application on the market. And centralized exchanges will grow into an entire ecosystem that will arise around

them.

With the overall growth of the DeFi sector, this opportunity for exchanges will become easier, and exchanges can significanly increase their market influence and increase their profits.

Their blockchains will be able to successfully compete with existing public blockchains thanks to their large user base and the huge resources that they possess, which should further strengthen their place in the cryptocurrency market.

Let’s take a closer look at what the exchange has achieved by the current moment and what to expect from them.

Binance

Mainnet Binance was launched on April 23, 2019.

Binance Dex is a market leader among decentralized exchanges with a monthly volume of $ 31,893,787.

Several token sales were held at Binance Dex, but the tokens of these projects are traded below the placement price.

https://cryptorank.io/ru/ieo-platforms-roi

According to the explorer, at the moment Binance Chain has registered 1003 projects, this is a huge number of tokens in such a short time since launch.

Projects seek to transfer tokens to the Binance blockchain in order to be able to list on the main exchange thanks to one of Binance’s programs or for marketing and PR purposes. And some projects are aimed at developing joint projects and innovations together with the exchange.

Also, CZ (CEO Binance) informed in its AMA sessions that Binance will further develop and implement various DeFi service and develop its decentralized exchange.

Huobi

The Huobi blockchain is designed by the Nervos team. Huobi’s high-performance blockchain will be optimized for a wide range of financial services and applications, including lending services, debit services, stablecoins, security token offerings (STOs), decentralized exchanges (DEX), real-world payment services, and much more.

Huobi Chain will also offer multi-asset support, smart contract capabilities and multi-side chain architecture support to provide enterprises with the most flexible and scalable infrastructure. Huobi Chain claims to be the first blockchain that is fully compliant with the law. Current code is open source and available on Github.

Bithumb

The Bithumb Global exchange has announced plans to create its own blockchain and wants to create an entire system around the exchange, which they called the Value System.
Bithumb Chain will allow you to transfer value, process information flows and integrate business verticals into the blockchain ecosystem.
After commissioning, the Bithumb exchange blockchain will offer benefits such as Exchange-as-a Service (EaaS) and a shared profit sharing protocol will be introduced.

OKEx

November 12, 2019 OKEx CEO, Jay Hao, has announced at AMA the creation of the OKChain network and its decentralized exchange OKDEX. It was also announced that he was already in the final stages of testing.

OKEx Exchange intends to use blockchain to help people who do not have access to banking services by providing them with basic financial products.
The decentralized OKDEx exchange will evolve as an addition, not replacement, to existing products, according to a recent report.

OKChain will develop on the Cosmos SDK to create a safe and efficient DeFi ecosystem, optimizing blockchain solutions for various financial applications.

The OKB token will be the basis for OKChain. The fundamental function of OKChain will be payment services.

At the launch of the mainnet, the stablecoin USDK offered by OKLink and PrimeTrust will also be added.
The first DeFi application will allow users to access the joint order book and the approval system for these orders.

Also in this network, other Defi-applications can be implemented, such as cross-chain services with BTC blockchain, decentralized credit products, derivatives trading services.

To date, OKEx has not provided the results of the development of the blockchain in the public domain.

Gate

Gate has already successfully launched the Gatechain testnet on September 30 and has opened access to the wallet.

Gatechain will primarily address security issues such as the loss of private keys and theft of assets. Opportunities for decentralized trading and cross-chain transfer will also be created among other main applications and between blockchains.
Support for multi-signatures and rewards for POS-staking has been announced.

– Thus, we see that exchanges will offer a wide range of services in the field of DeFi.
Each blockchain will have its own characteristics, directions and competitive advantages, which will allow to uniquely build an ecosystem around its own centralized exchange.
And we should see the first results already at the launch of the Mainnet exchanges in 2020.