As we mentioned in a previous analysis, the Binance Chain testnet was scheduled to be available on February 20, 2019. Binance announced yesterday that Binance Chain mainnet is now ready and will be activated on April 23.
The blockchain will support its native cryptocurrency, Binance Coin (BNB), with an initial valuation of around $3 billion. The existing BNB tokens issued on the Ethereum blockchain will be burned and replaced by new BNB tokens created on Binance Chain to maintain a consistent supply across both networks.
Mainnet vs. Testnet
Exchange platform Binance explains the difference between a mainnet and a testnet.
“The term mainnet is used to describe when a blockchain protocol is fully developed and deployed.” In practical terms, this means that cryptocurrency transactions are broadcast, validated, and permanently recorded on the blockchain.
By contrast, “testnet” refers to a protocol or blockchain network that is not yet operating at full capacity. A testnet is used by programmers and developers to trial the network, primarily to test the platform and debug it. The goal is to ensure the future main network is secure.
“In other words, a testnet exists only as a working prototype for a blockchain project, while a mainnet is a fully developed blockchain platform where users can send and receive crypto transactions (or other types of digital data recorded on a distributed ledger),” Binance summarizes.
Binance is one of the largest exchanges in the crypto industry
Binance is currently the third-largest cryptocurrency exchange by adjusted daily trading volume.
After a decline in trading volumes and profits in 2018, Binance’s profits surged by 66% in the first quarter of 2019 compared to the final quarter of 2018. According to a report by The Block, the exchange posted about $78 million in profit in Q1 2019, driven largely by rapid growth in its OTC trading platform.
Binance’s platform is available in French for francophone investors. If you want to buy Bitcoin and altcoins on Binance, check out our Binance review for more information and guidance.
Binance focuses on developing fiat-crypto products
Originally, Binance operated exclusively as a crypto-to-crypto exchange, so it was not possible to buy cryptocurrencies directly with fiat currencies (euros, dollars, pounds, etc.).
However, in February we reported that Binance introduced the ability to buy cryptocurrencies using credit cards, allowing users to purchase crypto with fiat currency.
Binance is expanding multiple auxiliary platforms to enable fiat-to-crypto trading.
For example, Binance Jersey offers European clients the option to invest in cryptocurrencies using euros or pounds, with four fiat trading pairs: BTC/GBP, ETH/GBP, BTC/EUR, and ETH/EUR. African traders can also access services via Binance Uganda. The company has also discussed launching a fiat-crypto platform in Singapore.
“Next week, we will launch a simple buy/sell platform in Singapore. It will be a new product in the form of a very simple buy/sell interface allowing users in Singapore to buy and sell Bitcoins in Singapore dollars,” said Changpeng Zhao, CEO of Binance.
He emphasized that, initially, the exchange will focus on Bitcoin (BTC). “It will be Bitcoin only. However, the platform hopes to add other cryptocurrencies. For many of these regulated jurisdictions, it’s easier to start with things people know and understand,” he added.