Binance released a white paper.  It appears that the exchange is going blockchain.

https://cdn.coingape.com/wp-content/uploads/2020/02/14003948/Binance-Changpeng-Zhao-min-678x381.png

The target: Ethereum

Binance is seeking to make transitioning from Ethereum to its new blocckhain as simple as possible.

>To take advantage of the relatively mature applications and community, BSC chooses to be compatible with the existing Ethereum mainnet. This means most of the dApps, ecosystem components, and tooling will work with BSC and require zero or minimum changes.”

Last year, Binance stopped using Ethereum as a trading pair.  This was a move that was blasted yet did not deter Binance.  In fact, little is deterring the largest exchange.

Earlier this month, it was announced that it was acquiring Coinmarketcap.com for $400 million.  A blockchain is going to be another piece in its ecosystem.

The key to their blockchain is that it will be a "virtual machine".  Ethereum is, by far, the leader in smart contract capabilities.

This could be a definite setback.  

Binance has long reach, with customers in South Africa and the Caribbean as well as Asia.

>Their virtual machine will be based on Tendermint and the new chain will run parallel to the Binance chain, an ecosystem that continues to be built from 2019 which comprises a decentralized exchange, DEX, where several tokens are traded.

>For ease, both chains can seamlessly communicate. Besides, it will allow staking as the new chain, BSC, seeks to combine decentralized Proof-of-Stake, a variant of Proof-of-Stake, and Proof-of-Authority (PoA).

https://coingape.com/will-the-new-binance-chain-kill-ethereum/

Ethereum is presently operating under the proof of work model which causes issues with scalability.  The chain is transitioning to POS which should help to alleviate part of that issue.

This will be a situation to watch to see how it all unfolds.

*Image from article linked*