Binance 白皮书精读

In our view, there are fundamentally two different types of exchanges: the ones that deal with fiat currency; and the ones that deal purely in crypto. It is the latter one that we will focus on. Even though they are small now, we strongly believe that pure crypto exchanges will be bigger, many times bigger, than fiat based exchanges in the near future. They will play an ever more important role in world finance and we call this new paradigm Binance; Binary Finance.

With your help, Binance will build a world-class crypto exchange, powering the future of crypto finance.

Some of the current crypto exchanges suffer from a number of problems:

Poor technical architecture — Many exchanges are "put together quickly", by good tech people, but who have little or no experience in finance or in operating an exchange. They often choose the simplest approach to get the system up and running. While this may work well in the beginning, as traffic grows, the system will not be able to handle the increased load. Exchange systems need to be engineered from the ground up with security, efficiency, speed, and scalability in mind.

Insecure platform — There are hundreds of exchanges that went down due to being hacked. Binance is built to high standards, audited, and penetration tested.

Poor market liquidity — Having a shallow orderbook means high slippage when trading, which is very expensive for traders. Getting miners, institutional investors and large traders into a new exchange is a chicken and egg problem.

Poor customer service — Traders are a different breed when it comes to users. Money is literally on-the-line. Many exchanges service traders as if they were running a social media site.

Poor internationalization — Blockchains have no borders. Most exchanges focus only on one language or one country.

Matching Engine — Our matching engine is capable of sustaining 1,400,000 orders per second, making Binance one of the fastest exchanges in the market today. You can be certain, on our exchange, that your orders will never be stuck due to the matching engine being overwhelmed.

Feature Rollout — We will roll out the platform in roughly the following order: Spot trading, Margin trading, Futures, Anonymous instant exchange, Decentralized (on-chain) exchange, and more.

Coins — Binance will support trading pairs in the following coins: BTC, ETH, LTC, NEO (ANS), and BNB (Binance Coin). More coins will be added over time. We generally will only add coins that have strong credibility, user base, and liquidity.

Device Coverage — We will provide cross-platform trading clients for: Web-based trading client, Android native client, iOS native client, Mobile HTML5 client, PC (Windows) native client, and REST API.

Multilingual Support — We will support English, Chinese, Japanese and Korean on all of our user interfaces.

Binance's revenue will come from the following sources:

Exchange Fee — Binance initially will charge a 0.2% fixed fee per trade. Other variations will be subsequently introduced, including maker-taker, volume based tiering and 0 fee promotions. We have no plan to charge above 0.2%.

Withdrawal Fee — Binance may charge a small fee for withdrawals.

Listing Fee — Binance will select innovative coins and other assets to be listed on the exchange, there may be a fee associated with those listings.

Margin Fee — If you trade on margin, there may be a fee or interest on the borrowed amount.

Other Fees — There may be other fees the platform may collect for various services such as automated algorithmic order etc.

We will issue our token coin, called the Binance Coin. A strict limit of 200MM BNB will be created, never to be increased. BNB will run natively on the Ethereum blockchain with ERC 20.

Allocation — 50% (100,000,000 BNB) for ICO, 40% (80,000,000 BNB) for Founding Team, 10% (20,000,000 BNB) for Angel investors.

BNB Value & Repurchasing Plan — You can use BNB to pay for any fees on our platform. When you use BNB to pay for fees, you will receive a significant discount: 50% in the 1st year, 25% in the 2nd year, 12.5% in the 3rd year, 6.75% in the 4th year, no discount in the 5th year.

Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.

Decentralized Exchange — In the future, Binance will build a decentralized exchange, where BNB will be used as one of the key base assets as well as gas to be spent.

We have a solid team led by Changpeng Zhao, with both traditional wall street finance and cryptocurrency experience. We have a track record of successful startups under our belt.

Changpeng Zhao (CZ) — CEO: CZ is the founder and CEO of BijieTech, a company that provides cloud-based exchange systems to exchange operators. Prior to BijieTech, CZ was the co-founder and CTO of OKCoin. Before that, he was the Head of Technology at Blockchain.info. Before entering the blockchain industry in 2013, CZ co-founded Fusion Systems Ltd in 2005, specializing in ultra-low-latency trading systems for brokers — deploying systems at Credit Suisse, Goldman Sachs, and Deutsche Bank. Before Fusion Systems, CZ was the Head of Development at Bloomberg Tradebook Futures for 4 years, managing a team responsible for the entire futures trading platform with annual revenues exceeding $300 million USD.

Funds Usage: 35% of the funds will be used to build the Binance platform and perform upgrades to the system, including team recruiting, training, and the development budget. 50% will be used for Binance branding and marketing. 15% will be kept in reserve to cope with any emergency or unexpected situation.

There are many risks involved in running an exchange. We understand this and have the skills, experience, and leadership to overcome them.

Security is Paramount — Many crypto exchanges have failed due to poor security procedures. Most security breaches could have been prevented by taking simple precautions to protect critical resources. Our team has developed Binance with security as the foremost concern in their minds. We strive to ensure that we have followed all the industry best practices when it comes to securing infrastructure and data including ISO/IEC 27001:2013 and the CryptoCurrency Security Standard (CCSS).

Market Competition — We know this will be an ultra competitive space. There are probably hundreds, if not thousands of teams wanting, planning or doing exchanges. Competition will be fierce. But in this age, this is a common risk in any decent concept or startup. The question is: given our team, track record, experience, industry resources, and product, do you believe we stand a better chance than the rest of the pack?