Bithumb Global, a leader among digital assets management platforms, has been one of the most active supporters of the development of the DeFi ecosystem in a multi-faceted manner. And as part of its commitment to this goal, Bithumb Global has been proactive in advocating the Binance Smart Chain Project, along with many other global supporters of the project on its various aspects.
Why Binance Smart Chain?
This project is unique in terms of its technology, as it will enable the operation of smart contracts, and will support the Ethereum Virtual Machine. This blockchain will also allow the hosting of Decentralised Applications, which will be perfectly suitable for the projects.
The system will also enable interoperability with other blockchains like the Binance Chain within its domestic environment, but will also allow for interoperability with other blockchains. To enable this cross-chain communication on the Binance Smart Chain, the Panama Project has been hosted on the chain. This project provides users with a great deal of advantage in terms of carrying out their transactions. This is part of Binance’s Token Canal project which strives to create a truly connected crypto world.
This will not only enhance the performance of the BNB token and the Binance Chain but will be hugely beneficial for all platforms which will be hosted on this blockchain. Interoperability is particularly beneficial for the Decentralised Finance platforms, as this will increase the scope of transactions and flexibility of moving assets around various platforms and uses. There are also other benefits of using this system, like the higher speed of transactions across different blockchains and no transaction fee for transactions to name a few. This is expected to attract more people towards the use of decentralized financial systems.
Moreover, despite being run on smart contracts, the Binance Pioneer Burn Program has been able to claim a niche, by flaunting their humane side of Binance. The program offers to cover for cases of genuine mistakes made in transferring Binance Tokens through the Token Canal Project.
Furthermore, centralized crypto platforms like Binance are always pitted against decentralized finance platforms. They are believed to have conflicting goals. However, through the establishment of the Smart Chain, Binance has been able to pave the path for the crypto sector in a new direction.
In this project, Binance has illustrated how the best utilities from both types of platforms can be pooled to produce better results for the customers. They have shown, while the stability and security of centralized platforms can be preserved, the flexibility and incentives for innovations which are the key advantages of decentralized platforms could also be nurtured within this framework.
Marrying the best of both worlds
They will be able to bring together features from conventional exchanges like spot trading and margin trading among others, and decentralized features like decentralized lending, liquidity mining, and many others. Therefore, unlike many assumptions about the competition between the two forms, in this case, we see the increased utility and greater options for the members of the community.
Binance has committed large amounts to nurture talent on the platform. This will be used for encouraging more innovative solutions towards this goal integration. These supports come in the form of liquidity support for selected DeFi programs. In the next phase, the fund will also take up incubation and other forms of long term support for innovative projects. Finally, in order to create this cross-chain network more efficient, the company has committed to invest in better tools that will be developed and deployed in the ecosystem.
Overall, all these projects are expected to not only popularise Decentralized Finance but also increase its utility. And since, this is aligned with the goal of Bithumb Global, we are committed to supporting this initiative all along.