Binance has its very own cryptocurrency token known as the Binance Coin (BNB).
BNB is used to access decentralized applications (dApps), services, and trading – it is the cryptocurrency that powers the entire Binance decentralized finance (DeFi) ecosystem!
A Brief History of the Binance Platform
Binance was founded in July of 2017 by Changpeng Zhao, commonly known as “CZ” – a developer who previously created high-frequency trading software. Although Binance initially laid its roots down in China, the popular exchange later moved its headquarters due to the increasing threat of regulatory action.
The Binance platform is currently the largest and most popular cryptocurrency exchange around the globe. As of June 2021, in terms of trading volume, the Binance exchange became the largest centralized exchange (CEX) in the entire world, supporting more than 1.4 million transactions per second.
What Is the Binance Smart Chain?
The Binance Smart Chain (BSC) separates BNB from utility tokens trading on other popular exchanges – traders can use it to pay fees, and developers can use it to power the applications they build!
For example, for users to access the BSC-powered decentralized exchange (DEX) known as PancakeSwap, they will first have to acquire BNB before sending it to a BSC-compatible wallet address of their choice.
In opposition to the Ethereum (ETH) blockchain and the ERC-20 token standard, the BSC token standard is called BEP-20. Unlike centralized blockchains used by traditional exchanges, like the original Binance Chain, the BSC features smart contract functionality and cross-chain compatibility.
Because the BSC is decentralized, it runs independently of the already-existing centralized Binance Chain and could still exist even if Binance went offline.
A Brief History of Binance Coin (BNB)
BNB first launched during an initial-coin-offering (ICO) in July of 2017. BNB was initially based on the Ethereum network but is now the native currency of Binance’s blockchain, the BSC (Binance Smart Chain).
Initially, BNB was nothing more than a utility token for discounted trading fees on the Binance platform. Since then, however, its use case has expanded to include a wide variety of dApps across a vast number of platforms.
Although one hundred million tokens were made available in the ICO, the current total supply is much lower due to token burning. Every quarter Binance uses one-fifth of its profits to buy back and permanently destroy some of the BNB held in their treasury.
Binance Coin (BNB) Use-Cases
As previously stated, BNB intended to be a utility token for discounted trading fees in 2017. Since then, however, its uses have expanded to numerous applications on a variety of platforms.
For example, BNB is primarily used to pay transaction fees on Binance.com, any Binance DEX, and the BSC.
One can also use BNB to invest in ICOs listed through the Binance Launchpad program. New cryptocurrencies list on the Binance exchange, and the use of Binance provides a seamless marketplace for trading in a variety of established and new digital BEP-20 tokens.
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