Binance Coin (BNB) is the native cryptocurrency of the Binance exchange, which is one of the largest and one of the most popular cryptocurrency exchanges in the world.
Binance Coin was created by Binance, and it initially launched as an ERC-20 token on the Ethereum blockchain.
However, with the launch of Binance Chain in 2019, BNB migrated to its own blockchain called Binance Smart Chain (BSC), which allows for faster and cheaper transactions.
BNB (formerly known as Binance Coin) stands for “Build and Build.” Along with fueling transactions on BNB Chain (similar to gas on Ethereum), BNB also acts as a governance token.
BNB token
BNB is primarily used as a utility token on the Binance exchange. Users can pay trading fees, withdrawal fees, and other transaction-related costs on the platform using BNB, and they often receive discounts when using BNB for these purposes.
BNB holders have the opportunity to participate in token sales and initial coin offerings (ICOs) hosted on Binance Launchpad, a platform for launching new blockchain projects.
BNB has gained widespread acceptance and is listed on numerous cryptocurrency exchanges, allowing users to trade it against other cryptocurrencies and fiat currencies.
Over the years, Binance Coin has grown in value and utility, becoming one of the significant cryptocurrencies in the market.
Token Burns
Binance performs periodic token burns where a portion of BNB supply is permanently removed from circulation. This is done to increase the scarcity of BNB and potentially boost its value over time.
Smart ecosystem of Binance
Binance Smart Chain enables the creation of decentralized applications (DApps) and supports various DeFi (Decentralized Finance) projects, making BNB an integral part of the Binance Smart Chain ecosystem.
Binance Chain and Binance Smart Chain are designed to be interoperable, allowing assets to be transferred seamlessly between the two blockchains.
