Binance Creates New Cryptocurrency Venus

This month, Binance announced plans to launch a cryptocurrency independent of the mainstream coins called Venus. Binance is currently the largest cryptocurrency exchange in the world. The company, which is based in Malta, is a platform that combines finance and digital technology. Its mission is to provide users with a safe and efficient means of making deals with others at any time and any place. Earlier in 2019, the company launched a decentralized service for trading. Since then, it has created stablecoins linked to Bitcoin and national currencies including the British pound.

An Innovative Project

This novel project is designed around cryptocurrencies called stablecoins. Stablecoins are essentially a control mechanism on the market. Their value is typically linked to other assets, including other cryptocurrencies, exchange-traded commodities, or fiat money. Stablecoins adjust coin supply automatically (either by increasing or decreasing) to keep a stable value. By doing so, these digital currencies maintain a stable and predictable value. Venus’s purpose is to create regional and localized stablecoins that are linked to fiat currencies. Fiat currencies are standard currencies issued and controlled by governments.

Venus’s Advantages

Quite simply, Binance says that the program was developed as an incentive for developing and developed countries to create new forms of cryptocurrency. The project is also a way to provide stability in pricing on the market. Unlike other markets in the world for cryptocurrencies, this one operates independently. As an autonomous creation itself, the program is designed to give developing countries more financial independence. It will also help protect their financial security by continually creating new currencies.

As a blockchain project, it provides an extra level of security. Blockchain technology enables the sharing and exchange of digital information. However, it has protective security measures in place that prevent data from being stolen or copied. It consists of blocks that build on cryptographic data of previous blocks. The more blocks expand, the more data they ultimately protect.

Venus vs Libra

Binance’s newest project joins a field with several other similar programs. One is Libra, which is a program launched by Facebook in June, 2019. This program also controls cryptocurrencies. However, the arrival of Binance’s new project has generated interest among those who use digital currencies around the world. There are some key differences between the two programs, including:

  • Objective
  • Level of control
  • Security
  • Partnerships
  • End users

One of the main differences between the two technologies is their objective. Libra’s objective is to help people avoid fees linked to remittance services and credit cards. Venus’s objective, on the other hand, is to provide a means for developing countries to gain more financial independence.

While Venus’s goal is to reduce the amount of control and regulation in cryptocurrencies, Facebook’s program is actually designed with the opposite intention in mind. Its level of control is considerably higher. It also involves regulation by big enterprises, while Binance’s program has a more hands-off approach to the market.

Binance’s new project is designed to create freedom among digital cryptocurrencies. However, security is a large part of its mission, too. Using sophisticated technologies, it adds multiple layers of protection to secure cryptocurrencies among developing nations. This added security measure is important to (and appreciated by) developing nations, which have some of the highest rates of cybercrime in the world.

Partners and Users

When Facebook’s program launched, it did not fly solo. Instead, the program includes a partnership with 27 entities. This elaborate partnership includes Coinbase, Uber, Mastercard, Visa, PayPal, and more. Binance’s program has not yet been linked to partners. But company officials say it may form partnerships with governments, technology companies, and corporations.

Essentially, both crypto projects target different end users. Facebook’s project targets its current user base, which includes those active on its site. It is adapted for different platforms, including mobile phones, computers, and more, to facilitate ease of use. Binance’s project is designed for a wide range of end users in developing countries, including those without access to social media.

Crypto Storage

We believe that protecting cryptocurrencies is critically important for cybersecurity. Our SecureDrives provide the highest level of protection with hardware encrypted cold storage for your digital currencies. With PIN authentication and wireless authentication through a mobile device, users are in total control of their currency. Call us at 1-800-875-3230 to learn more.