Binance White paper
Cont'd
Intro
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.
Problems
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 able to
handle the increased load. Exchange systems need to be engineered from
the ground up with security, efficiency, speed, and scalability in mind. This
often slows down the initial development, but is critical for long-term success.
Our team has decades of combined experience building and maintaining
world class financial systems that shape the economy. We understand how
these systems are built from the ground up.
● Insecure platform
There are hundreds of exchanges that went down due to being hacked .
1
Binance is built to high standards, audited, and penetration tested. We have
experience building financial systems to the highest security standards and
strive to ensure security first.
● Poor market liquidity
Professional traders and normal users are significantly affected by this.
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, and requires a team with
deep industry resources.
Binance’s team have been in both the finance and crypto industry for many
years. The team has worked on and operated a number of exchanges, and
have accumulated a large network of partners in this space. These partners
will be key in bootstrapping the exchange.
● Poor customer service
Traders are a different breed when it comes to users. Understanding the
trader mentality is vital for running a successful exchange. Money is literally
on-the-line. Many exchanges service traders as if they were running a social
media site. A 3-second delay in seeing your friends’ status update would
hardly be noticed, but on an exchange, the same would be unacceptable,
resulting in a torrent of user complaints.
In additional to the technology stack, Binance is built with service in mind.
Binance shares support responsibilities across the entire staff and company.
When a trader has a problem, they get an answer directly from someone who
knows the system and not someone reading from a script.
● Poor internationalization and language support
Blockchains have no borders. Most exchanges focus only on one language
or one country.
Our international multi-lingual team has extensive working experience in
North America, Europe and Asia, and we are able to smoothly support the
global market.
1 https://bitcointalk.org/index.php?topic=576337
[Written about 6 months ago, we see they have definitely kept up with their word]
Binance Exchange
Matching Engine
Our matching engine is capable of sustaining 1,400,000 orders / 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)
● BNB (Binance Coin)
More coins will be added over time. We generally will only add coins that have
strong credibility, user base, and liquidity. If you have a coin that you wish to be
listed on Binance later, participating in our ICO will help.
We have no plans to support any fiat currencies such as USD, RMB, JPY, or KRX.
Device Coverage
We will provide cross-platform trading clients for:
● Web-based trading client
● Android native client
● iOS native client (pending App Store review)
● Mobile HTML5 client (including WeChat H5 client)
● PC (Windows) native client
● REST API
Multilingual Support
We will support English, Chinese，Japanese and Korean on all of our user
interfaces. (The very initial release will be in English and Chinese only.) More
languages will be added over time.
[My PERSONAL experience with the exchange has been exceptional, no complaints, they are frequently issuing updates but they are honestly seamless in the experience. Trades are super quick and the mobile app works just as good if not better than the website]
Revenue Model
Binance’s revenue will come from the following sources:
Source Description
Exchange Fee Binance initially will charge a 0.2% fixed fee per trade. Other
variations will be subsequently introduced, including
maker-taker, volumed 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.
[I completely hear them out on their protocols, a little upset about the minimums throughout the site but it shouldn't matter if your investing right (:....they are definitely making some conscience decisions when listing coin so I like that )
+Binance Coin (BNB)
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
% Amount (BNB) Participant
50% 100,000,000 ICO
40% 80,000,000 Founding Team
10% 20,000,000 Angel investors
ICO
The ICO will be done in BTC and ETH, on multiple platforms around the world.
ICO Schedule
All times below are China Standard Time (CST), UTC+8 hours.
Date Task
2017/06/14 Confirmed start of the Binance project
2017/06/16 Initial draft white paper completed, circulated to potential angel
investors
2017/06/22 Announce Binance ICO plan, and release whitepaper to general
public
2017/07/01 ICO starts (platforms will be announced soon)
2017/07/15 Binance.com release v0.1 go live, active trading begins
2017/07/21 ICO finishes, or whenever the coins are sold out
ICO will start from 3PM July 1st, investors can purchase BNB tokens in 3
phases on a first-come, first-served basis until 100,000,000 tokens are sold.
As each new phase starts, the price will increase.
Investors will receive BNB tokens within 5 working days after the ICO finishes.
[Did not get a chance to participate but hey it's never too late]
+BNB Value & Repurchasing Plan
You can use BNB to pay for any fees on our platform, including but not limited to:
● Exchange fees
● Withdraw fees
● Listing fees
● Any other fee
When you use BNB to pay for fees, you will receive a significant discount:
1st year 2nd year 3rd year 4th year 5th year
Discount Rate 50% 25% 12.5% 6.75% no discount
Repurchasing plan
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.
BNB Vesting Plan for the Team
Initial release: 20% (16MM)
After 1 year: 20% (16MM)
After 2 year: 20% (16MM)
After 3 year: 20% (16MM)
After 4 year: 20% (16MM)
Funds Usage
● 35% of the funds will be used to build the Binance platform and perform
upgrades to the system, which includes team recruiting, training, and the
development budget.
● 50% will be used for Binance branding and marketing, including continuous
promotion and education of Binance and blockchain innovations in industry
mediums. A sufficient budget for various advertisement activities, to help
Binance become popular among investors, and to attract active users to the
platform.
● 15% will be kept in reserve to cope with any emergency or unexpected
situation that might come up.
[I have made some good returns from many different coins from Binance but I cashed out on most and am just holding as many BNB coins as I can get my hands on. Once they move to decentralized the coin is going to moon 🌒 so hard]
Team
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 - CEO
(aka CZ in the crypto community) LinkedIn Profile
CZ is the founder and CEO of BijieTech, a company that
provides cloud-based exchange systems to exchange
operators. Since founding in Sept 2015, BijieTech now powers
30+ exchanges in Asia. In the first 12 months since founding,
BijieTech closed 36.1 million RMB ($5.3MM USD) in revenue,
and will double that in its second year. BijieTech has never
accepted any outside investments, being cash flow positive
from day one.
As soon as the Binance ICO finishes, CZ will remain a shareholder of BijieTech, but
will relinquish all of his management duties to a new CEO. CZ will focus exclusively
on Binance. This applies to all BijieTech members listed in this whitepaper.
Prior to BijieTech, CZ was the co-founder and CTO of OKCoin. During his stay
there, OKCoin launched their international site, and their futures trading platform.
Co-ordinating with Stefan Thomas, CZ also lead the first proof-of-reserves in any
China crypto exchange. Most other major exchanges in China followed soon after.
In addition to managing the tech team there, he also lead the international marketing
team. He is still mentor to and good friends with Zane Tackett.
Before OKCoin, CZ was the Head of Technology and the 3rd person to join the
Blockchain.info team. He worked closely with Ben Reeves, Roger Ver, Anthony
Antonopoulos and Nicolas Cary to grow the Blockchain.info service.
Before Blockchain.info, CZ co-founded Fusion Systems Ltd in 2005, a company that
specializes in ultra-low-latency trading systems for brokers. Fusion Systems was
started in Shanghai, and currently has offices in Tokyo, Hong Kong, and Los
Angeles. Among other tasks, CZ was responsible closing and deploying trading
systems at Credit Suisse, Goldman Sachs, Deutsche Bank, and more. CZ left
Fusion System to work full time in the blockchain industry in 2013.
Before Fusion Systems, CZ was the Head of Development at Bloomberg Tradebook
Futures for 4 years, in New York. There CZ managed a team that was responsible
for the entire futures trading platform in Bloomberg, with annual revenues exceeding
$300 million USD.
Prior to Bloomberg, CZ’s college internship and first job out of college was in Tokyo,
working for a tech outsource company that was involved in developing trading
systems for the Tokyo Stock Exchange. This is where his exchange experience
began.
CZ was born in China and went to high school and college in Canada. CZ is fully
bilingual in English and Chinese, and can speak basic Japanese.
+Roger Wang - CTO
LinkedIn Profile
Roger is a co-founder and the CTO. He has been working in
the financial industry for 10+ years, responsible for building up
technical teams, designing the high level architecture of the
exchange and clearing systems, and running ops teams to
ensure the security and stability of exchange systems.
Prior to BijieTech, Roger worked at Nomura Securities, the
largest investment bank in Japan. He was responsible for a
global credit booking, analytics, and marking system, which supported thousands of
global traders and analysts. He has also successfully implemented a smart bond
matching engine, which consumes firm wide trading/order/position data, client
enquiry info, 3rd party data as well as public bond data, to discover business
opportunities for the firm using sophisticated custom built algorithms. It now
generates over 100MM USD revenue annually for Nomura.
Before Nomura, he was a tech leader in Morgan Stanley, where he designed and
built a financial TB level data warehouse, which supported a large number of users to
do real time data analysis and financial modeling. He was also a core developer for
low latency algorithmic trading systems, which served the firm’s largest clients like
Blackstone and Wellington Fund, that delivered significant commission income for
Morgan Stanley.
Roger is fully trilingual in English, Chinese and Japanese.
+James Hofbauer - Chief Architect
LinkedIn Profile
James is a co-founder and the Chief Architect of BijieTech.
He architects and implements the core matching engine and
its middleware. He also oversees client exchanges' public
endpoints to ensure security and high performance.
Before BijieTech, James worked at Palantir, a Silicon Valley
company that focuses on big data analysis. Palantir's
large-scale high-performance systems are used for
cyber-security, anti-money laundering, fraud detection, counter-terrorism, and many
other data relationship analysis purposes by both private and government entities.
Before Palantir, James worked at Fusion Systems. A notable project James worked
on was a global investment bank's systems architecture redesign, focusing on
reducing the number of systems, encrypting and securely handling sensitive data,
and introduced a new user security system which provides authentication,
authorization, and action audit logging.
James was raised and educated in America, earning a Bachelor’s of Science, Cum
Laude, in Computer Science. He is bilingual, native in English and fluent in Japanese
(JLPT N2 certified), and has lived in Japan for over 10 years.
James has known CZ for 7 years and they have worked in two startups together.
+Paul Jankunas - VP of Engineering
LinkedIn Profile
Paul is the VP of Engineering at BijieTech, responsible for the
C++ implementation of the core machine engine. He has over
15 years of experience in developing exchange systems and
financial trading applications. He is constantly looking for new
ways to improve the performance and scalability of the system.
Prior to BijieTech, Paul worked at SBI BITS, part of SBI Group, in Tokyo. SBI Group
is a listed financial services company with interests in a wide assortment of
businesses. Paul was responsible for both client and server side development for
trading applications.
Before that, Paul worked at Fusions Systems in Tokyo as the Head of Development
on Raptor, a market gateway with latencies under 2 microseconds, and before that
for Bloomberg in New York.
Paul has known CZ for 9 years and they have worked together in 3 companies.
Allan Yan - Product Director
LinkedIn Profile
Allan is a co-founder and the Product Director of BijieTech.
Allan has over 10 years of experience in product design, user
experience and trading. He drives the innovations in the
exchange systems built by BijieTech, and pushes the product
far ahead of the the competition in this ultra competitive
space.
Before BijieTech, Allan worked in Orient International Holding,
which is one of the biggest import & export firms in Shanghai. He was responsible for
the implementation of several informationization products, including ERP and e-Fax.
Meanwhile, he led a variety of game and VOD content platforms.
+Sunny Li - Operations Director
LinkedIn Profile
Sunny is a co-founder and the Operations Director of
BijieTech. He has many years of management and technology
consulting experience, has led 20+ exchange systems
projects, and provided comprehensive consulting for strategy,
operations, risk control and system development.
Prior to BijieTech, Sunny worked at Accenture as the senior
consultant. He provided many Top 500 companies for
strategic and IT consulting, and led a number of IOT, big data,
ERP information integration systems projects
+Investors & Advisors
In no particular order.
Matthew Roszak
Bloq co-founder.
Tally Capital Founding
Partner.
Roger Ver
Angel investors in many
blockchain businesses.
CEO of Bitcoin.com.
Ron Cao
MD of Sky9 Capital
Institutional investor in
BTCChina.
Chandler Guo
Angel Investor in
blockchain businesses in
China.
He Yi
CMO of Yixia
Technology.
Previously Co-founder at
OKCoin.
Yang Linke
Co-founder of BTCChina.
ICOCoin Founder.
Zhao Dong
One of the largest crypto
OTC brokers in China.
Da Hongfei
AntShares Founder.
Onchain CEO.
Jun Du
Co-founder of Huobi.
Angel investor.
Vincent Zhou
Founder of FinTech
Blockchain Group. Active
angel blockchain investor.
Lu Bin
CEO of Andui.com, a
blockchain financial
service company in China
Liu Sutong
Finance Channel TV
Anchor.
CEO of Heng Pool.
Eric Zhang
AntShares Core Member.
Lead match- engine
developer at Huobi.com
Leah Zhang
CMO of F2Pool.
Previously Investment
Manager of AngelCrunch.
Wang Qijun
Co-founder of Andui.
Formerly Marketing at
Blockchain.info
Roy Zou
CEO of Bitkio, Secretarl
at Ethereum Classic
Consortium (ECC)
Jackie Wang
Founding team member
of Bitbank.com and
BW.com and CHBTC.
Li Da
Co-founder of
JiulianTech.
Xiaoning Nan
Founder of BitOcean.
Jeff Cui
Founder and CEO of
TKing.cn. Tech lead at
Morgan Stanley.
Guicheng Xiong
Co-founder of 91
Wireless, acquired by
Baidu at $1.9 billion USD.
Xin Chen
Previous Product Director
of OKCoin. Analyst at
Guotai Junan Securities.
William Liu
Senior Partner at AllBright
Law Offices, the biggest
Law Firm in Shanghai.
+Risks
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) .
2 3
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/startup or mature
company. 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? If yes, then please join our ICO.