Cryptocurrency exchange giant Binance has announced a $1 million coding competition — dubbed the “Dexathon” — to solicit prototypes for the company’s planned decentralized exchange (DEX) and public blockchain.
The Hong Kong-based Binance announced the Dexathon on Friday, explaining in a statement that building a viable, user-friendly decentralized exchange is an “all-hands-on-deck initiative,” which is why the firm is soliciting external prototypes in addition to its internal research and development.
Previously, the company unveiled plans to launch its own public blockchain, which would serve as the foundation for a decentralized exchange. The company’s BNB token — which is currently structured as an ERC20 token — will be transferred into the new network and serve as its native asset.
Decentralized exchanges are seen as a major frontier in blockchain-related development because they will allow users to freely trade between cryptocurrencies without entrusting their assets to centralized third parties — entities that far too often fall prey to hacks.
A variety of DEX platforms already exist, but they have yet to achieve widespread usage or liquidity, largely due to systems that are not intuitive and order books that are restricted to a small number of assets.
Binance, which already operates one of the world’s highest-volume centralized exchanges, wants to change that, which is why they are offering $1 million in prizes for prototypes that they can integrate into their DEX codebase.
In addition to basic functionality, the DEX prototype should allow for new token creation, freezing, and burning — as well as the ability to trade one token for another within the same blockchain. Entries will receive bonus points if they include support for native on-chain initial coin offerings (ICOs).
This should all be accomplished without smart contracts, virtual machines, or Turing complete languages, and Binance advises that competitors should prioritize speed and simplicity over bells and whistles.
The company will distribute a combined $1 million in prizes (awards will be paid out in BNB tokens), and winning teams may also be considered for employment at Binance.
The exchange operator also said it will give qualifying university teams special grants of $10,000 per team, even if they don’t win an award during the competition.
Competitors have until June 30 to submit their entries.
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