BNB went from being just a utility token for use on the Binance exchange to fueling the entire Binance ecosystem.
What is Binance Coin?
Curious about the recent surge in price and interest in Binance coin (BNB), which hit a high of $75 during the current market rally ? Reduced costs per transaction! OK maybe that's not all, but low transaction fees among other features incentivize projects from other blockchain standards, for example, ERC20, towards BSC and Binance Chain. This has resulted in increased adoption and interest in the crypto ecosystem as more and more people join this growing network of options. Additionally, BNB coin offers multiple use cases across the Binance exchange and De-Fi ecosystem
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BNB
What is Binance Token (BNB)
February 8, 2021
By
Wilfred Victor
BNB
BNB went from being just a utility token for use on the Binance exchange to fueling the entire Binance ecosystem.
What is Binance Coin?
Curious about the recent surge in price and interest in Binance coin (BNB), which hit a high of $75 during the current market rally ? Reduced costs per transaction! OK maybe that's not all, but low transaction fees among other features incentivize projects from other blockchain standards, for example, ERC20, towards BSC and Binance Chain. This has resulted in increased adoption and interest in the crypto ecosystem as more and more people join this growing network of options. Additionally, BNB coin offers multiple use cases across the Binance exchange and De-Fi ecosystem
Binance Coin (BNB) is a cryptocurrency issued by the crypto exchange platform Binance. It is the native coin of the Binance Smart Chain network (BSC blockchain), integrated with several utilities, powering transactions carried out on the Binance smart chain network and its issuing exchange. It was initially implemented on the Ethereum blockchain when it was released to the public in June - July 2017, in the Initial Coin Offering (ICO) phase. This was done 11 days before the exchange opened for operations, resulting in a total supply of 200 million BNB. These tokens will later be reissued to BNB's native chain BEP2 at a 1:1 ratio following its mainnet migration two years later. The price hit a record 22,000% six months after publication, surpassing Bitcoin and Ethereum combined
How does BNB coin work?
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BNB
What is Binance Token (BNB)
February 8, 2021
By
Wilfred Victor
BNB
BNB went from being just a utility token for use on the Binance exchange to fueling the entire Binance ecosystem.
What is Binance Coin?
Curious about the recent surge in price and interest in Binance coin (BNB), which hit a high of $75 during the current market rally ? Reduced costs per transaction! OK maybe that's not all, but low transaction fees among other features incentivize projects from other blockchain standards, for example, ERC20, towards BSC and Binance Chain. This has resulted in increased adoption and interest in the crypto ecosystem as more and more people join this growing network of options. Additionally, BNB coin offers multiple use cases across the Binance exchange and De-Fi ecosystem
Binance Coin (BNB) is a cryptocurrency issued by the crypto exchange platform Binance. It is the native coin of the Binance Smart Chain network (BSC blockchain), integrated with several utilities, powering transactions carried out on the Binance smart chain network and its issuing exchange. It was initially implemented on the Ethereum blockchain when it was released to the public in June - July 2017, in the Initial Coin Offering (ICO) phase. This was done 11 days before the exchange opened for operations, resulting in a total supply of 200 million BNB. These tokens will later be reissued to BNB's native chain BEP2 at a 1:1 ratio following its mainnet migration two years later. The price hit a record 22,000% six months after publication, surpassing Bitcoin and Ethereum combined.
How does BNB coin work?
Source
BNB was originally issued to facilitate transactions carried out on the Binance exchange. For example, trading on the Binance exchange incurs a standard fee of 0.1% ( Trading fees are estimated based on your monthly trading volume and BNB holdings). Binance exchange allows users to pay trading fees with their assets or with BNB coins. If you choose to pay with BNB coins, there are special discounts, so it is suitable for high volume and active traders on the Binance exchange. BNB will later expand its use cases to other aspects including, travel fee payments, decentralized finance applications, miner fees on the Binance Smart Chain network, e-commerce, and many other use cases.
The importance of BNB?
Since the integration of the Binance Smart Chain network, BNB's value and use cases have increased significantly due to its low fees and fast blockchain transactions per second (TPS), 37.29 million transactions so far, and an average speed of 9.9 tps . Confirmation times for transactions occur in seconds, very cheap compared to other types of older blockchains, marred by slow confirmations and inflated fees.
Ease of Transaction
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BNB
What is Binance Token (BNB)
February 8, 2021
By
Wilfred Victor
BNB
BNB went from being just a utility token for use on the Binance exchange to fueling the entire Binance ecosystem.
What is Binance Coin?
Curious about the recent surge in price and interest in Binance coin (BNB), which hit a high of $75 during the current market rally ? Reduced costs per transaction! OK maybe that's not all, but low transaction fees among other features incentivize projects from other blockchain standards, for example, ERC20, towards BSC and Binance Chain. This has resulted in increased adoption and interest in the crypto ecosystem as more and more people join this growing network of options. Additionally, BNB coin offers multiple use cases across the Binance exchange and De-Fi ecosystem
Binance Coin (BNB) is a cryptocurrency issued by the crypto exchange platform Binance. It is the native coin of the Binance Smart Chain network (BSC blockchain), integrated with several utilities, powering transactions carried out on the Binance smart chain network and its issuing exchange. It was initially implemented on the Ethereum blockchain when it was released to the public in June - July 2017, in the Initial Coin Offering (ICO) phase. This was done 11 days before the exchange opened for operations, resulting in a total supply of 200 million BNB. These tokens will later be reissued to BNB's native chain BEP2 at a 1:1 ratio following its mainnet migration two years later. The price hit a record 22,000% six months after publication, surpassing Bitcoin and Ethereum combined.
How does BNB coin work?
Source
BNB was originally issued to facilitate transactions carried out on the Binance exchange. For example, trading on the Binance exchange incurs a standard fee of 0.1% ( Trading fees are estimated based on your monthly trading volume and BNB holdings). Binance exchange allows users to pay trading fees with their assets or with BNB coins. If you choose to pay with BNB coins, there are special discounts, so it is suitable for high volume and active traders on the Binance exchange. BNB will later expand its use cases to other aspects including, travel fee payments, decentralized finance applications, miner fees on the Binance Smart Chain network, e-commerce, and many other use cases.
The importance of BNB?
Since the integration of the Binance Smart Chain network, BNB's value and use cases have increased significantly due to its low fees and fast blockchain transactions per second (TPS), 37.29 million transactions so far, and an average speed of 9.9 tps . Confirmation times for transactions occur in seconds, very cheap compared to other types of older blockchains, marred by slow confirmations and inflated fees.
Ease of Transaction
An important aspect of the Binance ecosystem is transaction speed and fees, which really stand out compared to other networks. Many blockchain users find this fact interesting enough to use. Imagine paying a $200 gas fee for $240 worth of crypto. This is not suitable for traders in terms of return on investment (ROI). It has become commonplace to find traders turning to Binance chain solutions for trading activities. The speed is great, plus the fee structure around BNB is quite favorable. Any trader or DeFi user will be willing to jump in with these two new features.
BNB Burning
Every quarter Binance chooses to burn its supply, which acts similar to a dividend system. The initial supply amount of 200 million is much less than today, with 154 million BNB currently in circulation. This quarterly event reduces the supply of coins, with the target of increasing the price, a strategy that has worked perfectly since the start of the burning exercise. Coins are purchased from the open market and burned, with a target of 50% of the total supply. In the latest and largest BNB burn, Binance bought back and burned over 160,000,000 USD worth of BNB.
Disadvantages of BNB
There are growing concerns about the centralization of the Binance ecosystem. Many fear growing influence in the hands of one person, one central entity, and believe that this is incompatible with blockchain's decentralized status. However, with smart chain network distribution, centralization concerns are reduced. Centralization vs decentralization will be an argument that has been around for a long time, but now Binance has shown its efforts to maintain decentralization.
Final Thoughts on BNB
BNB went from being just a utility for use on the Binance exchange to fueling the entire Binance ecosystem. Its growth has raised significant concerns among the crypto community, especially with growing concerns about the network reaching its threshold in terms of usage and transaction volume. However, these services offer speed and relatively low costs, and are among the cheapest in the industry.
Many are widely speculating that the BNB asset could reach much greater price values in the future. What's next for the prolific Binance CEO, Changpeng Zhao , known as CZ? Only time will reveal what new use cases will come soon, perhaps NFTs?
