Binance Coin (BNB) is the native cryptocurrency of Binance Exchange and is one of the most popular cryptocurrency exchanges in the world.
Binance Coin was created by Binance and was first launched as an ERC-20 token on the Ethereum blockchain.
However, with the launch of Binance Chain in 2019, BNB moved to its own blockchain called Binance Smart Chain (BSC). This allows for faster and cheaper transactions.
BNB (formerly known as Binance Coin) stands for “Build and Build.” In addition to refueling transactions in the BNB chain (similar to gas on Ethereum), BNB also acts as a governance token.
BNB token
BNB is primarily used as a utility token for Binance Exchange. Users can use BNB to pay trading fees, withdrawal fees and other transaction-related fees on the platform, and when using BNB for these purposes, they often receive discounts.
BNB owners will have the opportunity to participate in token sales and initial coin products (ICOs) hosted on Binance LaunchPad, a platform for launching new blockchain projects.
BNB is widely accepted and is listed on numerous cryptocurrency exchanges, allowing users to trade with other cryptocurrencies and Fiat currencies.
Over the years, Binance Coin has grown in value and utility and has become one of the key cryptocurrencies in the market.
Token Burn
Binance performs periodic token burns where a portion of the BNB supply is permanently removed from the circulation. This is done because it can increase the rarity of BNB and increase its value over time.
The Smart Ecosystem’s Vinance
Binance Smart Chain enables the creation of distributed applications (DAPPS), supports a variety of Defi (Distributed Finance) projects, and makes BNB an integral part of the Binance Smart Chain ecosystem.
The Binance Chain and Binance Smart Chain are designed to be interoperable, allowing the seamless transfer of assets between two blockchains.
