BNB, originally known as Binance Coin, is a cryptocurrency created by Binance in 2017. It was initially launched as an ERC-20 token on the Ethereum blockchain to support the operations of the Binance exchange, one of the world's largest cryptocurrency exchanges by trading volume. BNB was created to provide an alternative method for paying the exchange's trading fees, offering users a significant discount compared to other payment methods.

BNB's utility has significantly expanded beyond merely facilitating transactions on Binance's platform. It now serves multiple functions within the Binance ecosystem and beyond, including participation in token sales hosted on Binance Launchpad, paying for transaction fees on Binance Chain, Binance Smart Chain (BSC), and being used in a wide range of applications in the decentralized finance (DeFi) space.

Binance Smart Chain, a parallel blockchain to Binance Chain, was launched to create a more robust ecosystem for decentralized applications (dApps) by supporting smart contracts functionality. This development has positioned BNB as a foundational asset within the BSC ecosystem, enhancing its use cases and demand.

BNB employs a unique burn mechanism where Binance uses a portion of its profits to buy back and permanently destroy a portion of the BNB in circulation, aiming to reduce supply and potentially increase the value of the remaining tokens. This deflationary model, along with its growing utility, positions BNB as a significant player in the cryptocurrency market, offering both utility and speculative value to its holders.