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Binance CEO: Binance Chain will support Delegated Proof of Stake [DPoS] in the future

Akash Anand

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Source: Unsplash

The world of cryptocurrencies is still reeling from the ongoing bearish market which has become the longest continuous market spiral in the history of Bitcoin [BTC] and other cryptocurrencies. This, however, has not stopped cryptocurrency organizations and companies increasing the pace on updates and developments with the Chanpeng Zhao led Binance being an example.

Just recently, Zhao stated that the Binance Chain will support DPoS in the future and will be a combination of DPoS and pBFT. The Binance Chain was created to shift the Binance Coin from the Ethereum blockchain to its own blockchain. CZ had said:

“The Binance DEX also lives on the Binance chain that allows you to trade in a decentralized manner… Cryptocurrency is supposed to be cheaper to transfer as supposed to be instantaneous, I think initially it did that but… I think the current decentralized exchanges are either slow or have relatively difficult to use UI.”

The Chief Executive Officer of Binance had also said that BNB will swap from the Ethereum blockchain and move to their main net after the DEX launches in early 2019. In a recent blogpost Binance further elucidated on the Delegated Proof of Stake that Binance is planning to implement. The blogpost describes it as:

“A DPoS-based blockchain counts with a voting system where stakeholders outsource their work to a third-party. In other words, they are able to vote for a few delegates that will secure the network on their behalf. The delegates may also be referred to as witnesses and they are responsible for achieving consensus during the generation and validation of new blocks.”

The DPos algorithm creates a voting system that is directly dependent on the delegates’ reputation. If an error is encountered on the node, it will be quickly expelled and replaced by another node. According to reports, DPoS blockchains are more scalable because of its ability to conduct more transactions when compared to Proof of Work [PoW] and Proof of Stake [PoS].

CZ was also in the news recently when he classified exchanges into three types: fiat to crypto exchange, DEX and crypto to crypto centralized exchanges. In his words:

“Most of the guys in the core community are heavy power users and they’re loud, they speak more and they want to use DEX. So we see that not really competing, we’re just offering different solutions to different people and we always let the user choose and we let the market choose.”

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