When I trade (ethereum based) tokens on binance, do the tokens actually trade on the blockchain, or does binance just change the ownership in an internal database and only invokes the blockchain when I withdrawal tokens?

If binance does not immediately submit trades to the chain, are there other exchanges that do do this?

2 Answers 2


They don't happen on-chain, and even if they did record them, they control the front end and the api so they could censor or front run you (cough, which they also do for bsc). DEX's are the way to go if you want transparency

  • Thanks, thats what I thought. Just a question: what does front run mean? And follow-up: does binance have a choice? Could the network support the number of transactions/second produced by binance if all trades happen on-chain? May 19, 2022 at 12:41
  • Front run means jump in front of your txn. So if you place a large market order, they could buy up a bunch and then sell it back to you at a higher price without you having any say. And they could on some shit centralized chain, but definitely not ETH or similar. But what you could probably do is just make a payments channel if its just transfers
    – thefett
    May 19, 2022 at 12:46
  • Oke thanks again, that all makes sense! May 19, 2022 at 12:49
  • One more thing: if everything happens on-chain, wouldn't some data mining pretty easily detect the front-running? May 19, 2022 at 13:14

No, it doesn't just like similar apps like FTX, Coinbase, Kucoin. This is because they are Centralized applications. Although, transactions involving it's native BEP-20 tokens are verifiable on the Binance Smart Chain using the Blockchain Explorer - Bscscan

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