Binance Coin (BNB) is the utility token of the Binance ecosystem. Used to pay commissions, payments and staking.
BNB powers the Binance ecosystem. As a native coin of Binance Chain, BNB has many uses, from fueling on-chain transactions, paying transaction fees on the Binance exchange, making payments in stores, and more.
As you might guess from the name, this is the native token of the famous Binance cryptocurrency exchange. The main application is the payment of exchange commissions and the provision of various discounts to token holders. By the way, Binance became the first trading exchange to have its own tokens. Learn more at https://farming.aquaswap.net/.
History of Binance Coin (BNB)
In the middle of 2017, the developers of the Binan ce cryptocurrency exchange ( Changpeng Zhao, Roger Wang, James Hofbauer, Paul Yankunas, Allan Yang, Sunny Lee) introduced the world to their own internal cryptocurrency created on the basis of the Ethereum blockchain (ERC-20 standard).
BNB was launched through an initial coin offering in 2017, 11 days before the Binance cryptocurrency exchange went online. It was originally released as an ERC-20 token running on the Ethereum network with a total supply capped at 200 million coins and 100 million BNB offered in the ICO. However, ERC-20 BNB coins were replaced by BEP2 BNB at a 1:1 ratio in April 2019 with the launch of the mainnet of Binance Chain and are no longer listed on Ethereum as Binance Chain is showing much better performance.
Up to 1.4 million transactions per second can be made on the Binance platform. This is much more than other cryptocurrency systems are able to provide.
What is the purpose of BNB?
BNB can be used as a payment method, a utility token to pay fees on the Binance exchange, and to participate in the token sale on the Binance Launchpad. BNB also supports Binance DEX (Decentralized Exchange).
Can you mine BNB?
You cannot mine BNB as a proof-of-work cryptocurrency because the Binance blockchain uses the Byzantine Fault Tolerance (BFT) consensus mechanism. Instead, there are validators who make money protecting the network by validating blocks.
What is a BNB burn?
Before BNB moved to Binance Chain, Binance performed coin burns on the Ethereum network using the smart contract burn feature. The number of coins that Binance burns depends on the number of exchange transactions in three months. Since the launch of Binance Chain, BNB burning no longer occurs on the Ethereum network and now uses a specific command on Binance Chain rather than a smart contract.
How to buy BNB?
You can buy BNB on the Binance Cryptocurrency Exchange using bank transfer, wire transfer, credit or debit card, or any other exchanges that offer cryptocurrencies. To see the latest list of exchanges and trading pairs for this cryptocurrency, please visit our market pairs tab.
BNB Metrics
The price of Binance Coin at the time it was added to the Block-Chain24 catalog is $28.37, with a 24-hour trading volume of $409,988,210. Binance Coin has dropped 60% in the last 24 hours. The current ranking of CoinMarketCap is 7th with a market capitalization of $4,096,611,325. It has 144,406,561 BNB coins in circulation and max. supply of 176,406,561 BNB coins. The leading exchanges for trading Binance Coin are currently Binance, CITEX, HBTC, BitZ, and Binance.KR. You can find others.
Advantages
The BNB token has the following positive characteristics:
- high level of security of operations;
- the system works stably even under high loads thanks to a well-designed architecture;
- the commission for each operation is only 0.1% of the transaction amount;
- working with cryptocurrency is possible on any platform, including those adapted for mobile applications;
- interaction with different types of cryptocurrencies and, as a result, a high chance of selling;
- high speed of work - in terms of the number of transactions carried out every second, no one has yet made this cryptocurrency worthy of competition;
- the BNB cryptocurrency was created on the basis of an already operating exchange, that is, it is actually supported by a working business project, which increases investor confidence in the platform and the token itself;
- owners of BNB tokens have the opportunity to receive discounts of up to 50% when trading on the Binance exchange, as well as purchase more than 200 different types of cryptocurrencies for them, including those at the ICO stage;
- implemented support for most major browsers, as well as Android, Web, WeChat, HTML5;
- although this cryptocurrency was conceived as internal to Binance , but, nevertheless, it has already been added to several other well-known exchanges;
- the developers plan to eventually keep only half of the already issued tokens, monthly burning somewhere around a fifth of the quarterly profit, this will lead to an increase in the value of the coin.
The development is currently available in English, Japanese, Korean and Chinese.
Development plan
BNB developers have plans to implement several more useful features on the platform.
So, for example, it is planned to implement the possibilities of margin, spot and futures trading. The creators want to add functionality that helps to implement instant anonymous exchange, as well as make a decentralized exchange service. According to the same plan, the Binance exchange will turn into a decentralized system, and BNB tokens will play the role of the main assets on it.
Storage methods
A native cryptocurrency wallet has not yet been developed, however, tokens can be stored directly on the Bina nce exchange , as well as on one of the dozens of multi-currency wallets available.
It is worth remembering that storage on exchanges is not safe, because many of them are regularly subjected to hacker attacks, which are sometimes successful for violators. Therefore, storage on the exchange is advisable only with active trading of coins. If the asset is acquired for the long term, then it is still worth withdrawing the cryptocurrency to the wallet.
BNB Mining
This cryptocurrency cannot be mined. It is possible to receive tokens during trading operations on the Binance exchange. In total, approximately 200 million coins were issued, most of which were distributed among the creators, investors (who invested during the collection of the ICO) and patrons of the project. There are no plans to issue new coins at the moment.
Buying and Selling BNB
You can buy this cryptocurrency on the Binance exchange for other types of digital assets, as well as on the Russified Yo Bit exchange (including for fiat money). In addition, you can buy BNB on the not very well-known Bancor Network trading service.
BNB Development Prospects
BNB tokens are in demand because they allow their owner to receive significant discounts on one of the most famous cryptocurrency exchanges, Binance. According to experts, the cost of coins will only grow and by the middle of 2018 will exceed the current figure by several times. The quarterly destruction of some unused coins will also have a positive effect on the price increase. However, experienced players in the crypto-currency markets can already note a fairly rapid increase in the price of BNB, and in general, an undying interest in crypto-currency. It is worth noting that the number of users of the exchange is growing in parallel, there are already more than 3 million of them and this is far from the limit.
From the foregoing, we can conclude that BNB tokens are not only a good tool for long-term and even short-term investment, but also a good way to save money when trading on the Binance exchange, keeping more funds on your balance for further investments. In addition, this cryptocurrency will allow you to invest in new cryptocurrencies at the ICO stage, which is a great bonus for experienced investors who want to purchase digital coins that are under development.
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