Binance Coin (BNB): What is it ?
BNB crypto by Crypto Nation – 13 July 2021
By Crypto Nation – 13 July 2021
Binance Coin Crypto Card Summary :
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Binance Coin Fundamental Data
- Name: Binance Coin
- Symbol: BNB
- Type: Blockchain, Exchange, Payment
- Consensus: Proof Of Stake (PoS)
- Year of creation: 2017
- Founder: Changpeng Zhao (aka CZ)
- Official website: https://www.binance.com/
- Mainnet: Yes – https://explorer.binance.org/
- Whitepaper: https://whitepaper.io/coin/binance
- Twitter: @binance
Binance Coin market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the Binance Coin project ?
This coin was created by the current largest crypto platform, Binance. Binance Coin can be given two main objectives:
- First of all, it provides a lot of services within Binance platforms.
- Secondly, it is the token allowing the operation of Binance’s blockchain, the Binance Smart Chain. An essential feature of the ecosystem, it has the capacity to process a very large number of transactions, almost instantly .
An essential alternative during the saturation of the Ethereum blockchain, the BSC has quickly established itself and created a large-scale ecosystem.
Note, however, that the BSC is obviously owned by Binance, and is therefore not open source.
The origin of the project
BNB was created by the Binance exchange in July 2017, at the same time as the platform. It was then based on the Ethereum blockchain before moving to the Binance Chain in April 2019 which is a kind of centralized copy of ETH.
Most of the developers are based in China. We can cite Changpeng Zhao, CEO and founder of Binance, a strategic and essential member of the development of the ecosystem.
What is its use?
The main use of BNBs is to be able to benefit from the services offered by Binance.
They allow a reduction in transaction fees on the platform, with the possibility of staking them to obtain rewards.
In addition, it is possible to participate in the launch of certain cryptocurrencies using BNB through the Binance Launchpad.
More information on Binance in our dedicated platform guide, accessible by clicking here.
Through the Binance Smart Chain, the BNB acts as a “gas”, it is used to pay transaction fees within the blockchain and during interactions with Smart Contracts.
Management of the economy (at 07/11/2021)
Initially, a maximum of 200 million BNB was available.
Binance has committed to withdraw tokens up to 20% of their profits every 3 months, making it possible to decrease the number in circulation and thus indirectly increase the value of this cryptocurrency.
These burns will be carried out until a total of 100 million BNB remains.
Binance Coin is therefore currently deflationary.
Currently, there are 153 million BNB in circulation, with a maximum supply of 170 million coins.
Diagram of the evolution of the cryptoactive
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your Binance Coin (BNB) through various solutions:
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
- Binance Chain Wallet, Binance’s official web and mobile wallet.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
The BNB was able to do well, faced with a congested Ethereum, and that with flying colors. Binance’s cryptocurrency has become one of the top 5 most capitalized cryptos.
It seems logical as this huge ecosystem around the Binance Smart Chain (BSC) has grown so rapidly.
It now gives many opportunities. DEXs (decentralized exchanges) like PancakeSwap offer monstrous interest rates (in pool or farming) to make other blockchains pale.
So yes, BNB is centralized and fully dependent on Binance. Therefore it is not the token that will transmit the values of transparency and decentralization that we support so much in the cryptosphere …
But it brings so many new functionalities, with fees so low that it makes this blockchain accessible to anyone.
Which thus pushes in a way to democratization.
BNB will necessarily remain intimately correlated with the performance and evolution of Binance and its ecosystem. But do you think the leader of exchanges is in decline?
It is perhaps only at the very beginning of the expansion of his empire…