At the start of the week, Binance announced that it would make an upgrade to its spot trading platform on Sunday, June 28. As part of the upgrade, the Malta-based crypto exchange planned to overhaul the matching engine. While details have not been released, the upgrade is expected to improve performance x10, which could result in handling 100X more in trading volume.

The Biggest Upgrade Thus Far

Binance was launched in 2017. Since then, it has received several upgrades. Most of them are focused on improving performance while others were changes to the UI and service offerings. For instance, in 2019, Binance rolled out margin trading, several lending products, as well as a staking platform. In April 2020, the platform added options on the futures trading platform.

While those were major upgrades, the Binance CEO claims that the latest upgrade was the biggest thus far. In the latest upgrade, the exchange overhauled the matching engine and it is now written in a new language. He claims it took the exchange two years to come up with it. While details were lacking, CZ said the upgrade would prepare the platform for the “next wave.”

The Future Looks Bright

When Binance launched in 2017, it had the fastest matching engine in the crypto sector. The platform could process around 1.4 million orders per second. Since its launch, the exchange has seen a huge increase in the number of active users. Additionally, the number of active markets on the platform has grown a lot. For those unfamiliar, matching engines are relevant on any financial exchange. In order to complete trades, matching engines have to match up “bids” and “offers.” This is usually facilitated by various algorithms allocating all the trades on a given day.

Since the exchange launched, there has also been an increase in algorithmic and high-frequency trading. Despite Binance entering new horizons and experiencing exponential growth, it has sometimes led to various issues for users during critical periods in the crypto market.

No solid figures have been posted on how much the upgrades will improve performance. However, CZ said that the upgrades would lead to a 10X increase in performance compared to the previous matching engine. As a result, the CEO believes the exchange could theoretically handle 100X more volume. However, other systems could cause bottlenecks in the performance.

With the upgrades complete, everything is back online and customers can continue making deposits, cancel their orders, use the spot trading platform, and make withdrawals. However, only time will tell if the upgrades will resolve all issues users of the platform have been facing.

Binance is a leader in the crypto exchange space. The platform has been expanding its reach in the crypto market through partnerships and buyouts. For instance, they recently added a new feature that lets customers purchase crypto directly from a merchant’s website. In general, the future looks bright for the Binance platform, and it’s extremely important that the crypto exchange is working on its overall efficiency. With the digital asset space still being young, it’s not out of the ordinary to hear about exchanges still having technical issues during times of elevated volume. With Binance taking initiative, it’s expected that other cryptocurrency exchanges will follow suit. Recently, other exchanges like crypto.com were taking a similar approach, monetizing their exchange, so their efficiency could experience 10x growth as well.

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