The infrastructure for blockchain’s future is still being built, and popular exchange Binance continues to invest heavily. Their development arm, Binance Labs, announced that they would be developing a blockchain incubator to help foster the next generation of blockchain start-ups. Rather than compete in the over-saturated ICO market, these select projects would receive seed money, advice and support from Binance in return for a hefty stake in their business. In return for $500k and an array of support, these start-ups will be expected to give Binance 10% of their business in return.
Binance is well known as one of the most professional and successful centralized exchanges. They’ve earned this reputation through a commitment to ease of use, transparency and quality coin offerings. Their Binance Labs wing is a reinvestment of profits into fostering greater adoption of blockchain technology.
Binance Labs Incubation Program
The process of starting a cryptocurrency ranges from incredibly simple to fiendishly complex. The mechanics of a simple coin – particularly in the ERC20 era – are simple enough that a blockchain prototype can be generated in a day. However, the process of refining, modifying and coding a custom blockchain is much more difficult. This is without even considering the level of support needed for the blockchain to properly validate.
The Binance Labs Incubation Program will help promising blockchain projects navigate the start-up process through connecting new entrepreneurs with seasoned veterans. Rather than a random slew of advisors, these new projects would gain credibility through a tested battery of experienced mentors. The incubation program itself shows that Binance believes these start-ups can succeed – which in-and-of -itself is a major benefit. For Binance, this is an easy decision. They will be in on the ground floor for some of the most promising projects in the blockchain world – while simultaneously helping to build and nurture the industry that they depend on.
The State of Binance
Binance’s arrival on the cryptocurrency scene caused a seismic shift. After just over a year, Binance is one of the largest cryptocurrency exchanges by trading volume. Their decisions can have wide reaching consequences and sometimes disrupt entire sectors of the blockchain industry. After running into regulatory troubles in their home nation of Japan, Binance decided to move their base of operations to the small country of Malta. This act has caused Malta to become one of the most desired locations in the world for blockchain-related companies.
Far from resting on their laurels, Binance is actively developing both a decentralized exchange and an academy to train new blockchain engineers. Investors should take note of these forward thinking actions and the commitment to the future that Binance is so readily showing. Blockchain is still an emerging technology – one that requires shaping. Binance is now in a position to shape the blockchain landscape for years to come.
Article By: Adam Stone