The rise of decentralized currency has been long expected since the first digital mint by cryptographer; David Chaum. The production of what was then called “ecash” led to a series of events where the making of the world’s famous bitcoin came to be.
The world has since seen different kinds of cryptocurrencies, and it is very unlikely that the production of these coins ends anytime soon.
Their trade and exploitation have shown the world economy in a different light, and one of the tools by which their trade has been made possible is with platforms such as Binance.
What is Binance?
Binance is commonly known as a cryptocurrency trade platform, where a currency can be exchanged for another at certain rates. It started small in China and has expanded to become the most used platform in terms of cryptocurrency trade.
Alternatively, it can be seen as a centralized exchange platform used to buy and sell crypto assets. It was founded by Chanpeng Zhao in 2017 and has ever since bloomed. In 2017, the company launched its coin, known as Binance coin (BNB), which complements other coins such as Bitcoin, Ethereum, Lite coin, Tron, etc.
Binance, in its few years of running, has managed to run more services, other than simply trading digital assets. In addition to trading, they offer lending services, investment options, savings, and almost all that a traditional bank offers, differing only in what assets they deal with.
Although they have had a few clauses with financial authorities in countries such as the United States of America, the United Kingdom, and recently Italy, their usage and daily trading volume has continued to increase exponentially in the past couple of months owing to their ease of use, the flexibility of services and mass adoption of cryptocurrency all over the world.
It is interesting to know that while Binance has been legalized and allowed to operate freely in countries like El-Salvador, Italy has asked that they go through a process to seek authorization to operate.
According to information gathered from research, the Consob of Italy accused Binance of operating without authorization and out of the interests of users and shareholders in the country.
This is similar to the request of the United Kingdom’s government that all crypto-based institutions be registered to be duly regulated. In countries like Japan and China, where cryptocurrency-related activities are banned, it is also restricted. Otherwise, Binance is a global platform known and loved by many.
Pros and Cons of Binance
1. Centralization of Affairs
Binance runs like a network, seeking to bring all activities under its umbrella and largely succeeding in doing so. Everything a user needs from trade to withdrawal can be found on the platform, with minimal or non-existent interference from third parties.
This approach puts them in direct control of activities that go on in the platform, thereby securing users’ interests. It keeps assets safe and secure, regulates activities, and promotes a sense of order and ease.
This sort of setting has made them reliable, credible, and endearing to users.
Although Binance has had attacks in the past, and the hackers made away with quite an amount of assets, this approach ensures that such attacks are less frequent and much difficult to pull off in the future.
However, the offside to this is that, upon subsequent attacks to the platform, there is a lot to be lost and a lot that can be tampered with. Centralization puts everything in a box, and once that box is stolen, that’s the end.
Furthermore, the original design of cryptocurrency was decentralized and outside the direct control of an individual, agency, or government. Its centralization by Binance goes against the original idea, and for some, this would be an omen of more contradictions to come.
2. It is Easy to Use
The platform is user-friendly, and although it requires registration, it is very understandable. It has great customer care and handles orders swiftly. It offers more financial options that are consumer-themed and allows flexibility compared to other platforms. It is available worldwide and on any android or IOS mobile.
However, the con to this is that it is also restricted in seven states of the U.S.A and offers fewer services to people from that area.
3. User Protection
Aside from some minimal registration, Binance allows their users to remain mostly anonymous, which helps evade tax charges or monitor their trade. Users, in turn, enjoy making money without having to pay any charge.
The offside to this is that Binance keeps on having governmental issues due to a lack of cooperation, tax evasion, and accusations of money laundering. The problems ultimately lead to their bans and restrictions, thereby making them less available to some people.
They offer the best utility tokens that can be used on the platform and even beyond. It can be used for online shopping, payments, transfers, and crypto credit cards.
However, the con of this is that, unlike most banks, they don’t accept fiat deposits or withdrawals in the beginning stages, and most of their luxuries are only available and understood by advanced users.
Binance has made cryptocurrency trading a lot easier and accessible for more people all over the globe. One can only wonder what new innovations the software will bring to the table in the years to come.