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What is BNB?

BNB

BNB or Binance Coin is a coin from the Binance platform. It can be considered a Binance cryptocurrency. Binance Coin was launched on the Ethereum blockchain, specifically in the form of the ERC-20 token.

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What is BNB?

BNB or Binance Coin is a coin from the Binance platform. It can be considered a Binance cryptocurrency. Binance Coin was launched on the Ethereum blockchain, specifically in the form of the ERC-20 token. Its issuance, coinciding with the launch of the platform in 2017, launched a total of 200 million assets. Later, BNB was transferred to its own blockchain (Binance Chain). Unlike other cryptocurrencies, it is not a resource for mining cryptocurrencies. It is created as a deflationary cryptocurrency, which means that it will gradually reduce the amount of existing assets. It is projected to reduce assets to 50% of the original issue. This would leave only 100 million BNB in circulation.

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What is Binance Coin used for?

The Binance cryptocurrency was created as a tool for transaction payments within the Binance platform itself. As the exchange grew, so did the value of this resource. It can now be used either on the blockchain, on other exchange platforms (if accepted) or for payments to third parties. The most common uses of BNB are :

  1. Payment methods, bonuses and platform operations.
  2. Used to exchange with other cryptocurrencies within the platform or on third-party platforms.
  3. Making physical purchases and payments where permitted.

Differences between Binance Coin (BNB), and Bitcoin

The main difference is that Bitcoin is a separate cryptocurrency with its own blockchain. For its part, BNB is a digital asset owned by an exchange platform and running on its own blockchain (compatible with Ethereum).

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Advantages of BNB

BNB is a useful cryptocurrency with interesting features. Some of the most important features of Binance Coin are:

  1. Speed in operations
  2. Versatility, as it can be used for internal transactions, payments, exchanges, etc.
  3. Security – has a complex security model based on different levels and clusters. In addition, the funds are backed by the Secure Asset Fund (SAFU).

It is one of the major cryptocurrencies on the market. It currently ranks in the top ten in terms of market capitalization.

Forecast for Binance Coin

Binance Coin is currently one of the most successful cryptocurrencies in the world. As a platform, Binance is one of the largest exchanges in the cryptocurrency sector. Especially in the Asian region, more and more trading applications and services are using the technology provided by Binance as a basis for doing business.

The steadily increasing trading volume supports the Binance team’s claim that the platform can handle more than one million transactions per second. Nevertheless, open questions remain, especially regarding the Binance Smart Chain. While the Binance team is trying to position the technology as a universal platform for smart contracts, so far it is little more than a technology by which off-chain options are added to Binance’s high-performance marketplace. While useful, the added value compared to other smart contract and distributed computing platforms is low. Nevertheless, it is true that Binance’s blockchain alone, with its huge trading volume, justifies for many investors investing capital in the platform.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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