The painful and incredible growth of Binance

in bitcoin •  7 years ago 

Lovers of cryptocurrency will all agree that the year 2017 has been rather spectacular. Not only did we see all the prices rise significantly, but we also saw the exchanges fighting to keep up with the demand. Last week, Binance was forced to stop user registrations because of overwhelming success. The company has published some interesting details about the reason for this decision. It certainly makes sense that the site improves its infrastructure in advance.

In the last six months of 2017, we have seen many exchanges suffer from an influx of new user registrations. This is not only because all these users tax the infrastructure of the sites themselves, but also because the accounts will have to be checked sooner or later. It is obvious that this pressure on resources has been a problem for many companies, and Binance has taken the measure. This platform quickly became the largest cryptocurrency exchange in the world based solely on trade volume. This is rather remarkable, as the Hong Kong-based company was relatively unknown until the beginning of 2017.

According to Binance CEO Zhao Changpeng, the company recently added 240,000 new users in just one hour. While some people would be happy to say that this number is impossible to reach, this is the information that Zhao shared with Bloomberg Television earlier this week. At this rate, the company would see nearly 4 million new user registrations every day. Given the global interest in cryptocurrency, this number may be achievable, although it is unlikely to become the new norm.

As one might guess, the company was ill prepared for such spectacular growth in a very short time. It is doubtful that any exchange of cryptocurrency in the world can deal with such a large number of new users on a daily basis. Although it is clear that interest in cryptocurrency has never been so high as today, more than 200,000 new users per hour are quite important. Most smaller grants do not even have 200,000 users in total.

It seems that Binance is particularly popular among institutional traders who want to get directly involved in cryptocurrency. It's rather interesting, because it seems that there would be other exchanges with better reputations that might as well do the trick. Here again, Binance has the highest transaction volume in the world, even though the company has so far stopped user registrations.

It remains to be seen when Binance will accept new user registrations. With site traffic already reaching alarming heights, it is clear that its infrastructure will need major upgrades in the future. The company is making improvements as we speak, but there is no official ETA on the date of reopening services to the general public.

Binance's main front-end infrastructure resides on Amazon Web Services and the company has reached the maximum number of servers it can buy on Amazon. All of this shows that we need a form of decentralized technology to get things done. At present, there is no such service, although some projects are currently under development. Looking for other cloud services is not necessarily a valid option for Binance, as AWS is the biggest player in this market right now.

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Waiting for new London Block Exchange https://londonblockexchange.com/ to accept my registration. They have a waiting list which is nearly 10,000 long at the moment.

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