Binance, the largest cryptocurrency exchange by trading volume, announced today that they are officially developing a public blockchain to create a new decentralized exchange. Known as Binance Chain, the public blockchain will focus on the trading and transferring of blockchain assets and will complement their existing centralized exchange.

According to the announcement, Binance has been researching decentralized exchange frameworks and feels a public blockchain-based platform is the next logical step given the potential.

After extensively researching decentralized exchange frameworks and analyzing existing implementations, we believe significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed. Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence. We stand here today because we believe that Blockchain technology will change the world. In the face of adversity, we have always elected to tackle issues head-on, instead of retreating. As such, we have decided to officially launch the development of the Binance Chain. As a public blockchain, Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain mainnet, becoming a native coin. At the same time, Binance will transition from being a company to a community.

The main difference between a decentralized exchange and a centralized exchange is that a decentralized platform does not rely on a third-party service to hold funds. Users transact directly with each other without the need for a central server, and there is no central authority that possesses order books or custody. Thus, decentralized exchanges are thought to be more difficult to hack.

The concept is nothing new, as decentralized exchanges like Waves, NXT and others have been around for a while. However, the decision to develop a decentralized exchange to complement their existing centralized exchange makes Binance incredibly formidable, as they already possess a userbase large enough to provide substantial liquidity.

The announcement outlined Binance’s plans to turn Binance Coin (BNB) into a native coin on its own blockchain mainnet. The news has sent the token, which is currently used for discounted exchange fees, up 28 percent to over $10.