Binance Coin was launched through an initial coin offering in 2017, 11 days before the Binance cryptocurrency exchange went online. It was originally issued as an ERC-20 token running on the Ethereum network, with a total supply capped at 200 million coins, and 100 million BNBs offered in the ICO.
However, the ERC-20 BNB coins were swapped with BEP2 BNB on a 1:1 ratio in April 2019 with the launch of the Binance Chain mainnet, and are now no longer hosted on Ethereum. BNB can be used as a payment method, a utility token to pay for fees on the Binance exchange and for participation in token sales on the Binance launchpad. BNB also powers the Binance DEX (decentralized exchange).
The Binance Chain serves several useful functions, such as the creation of new tokens to digitize existing assets, send, receive, burn/mint and freeze/unfreeze tokens.
You can also watch the DEX market to confirm price and market activity of certain assets, explore the transaction history and blocks on the chain, via Binance Chain Explorer, API and node RPC interfaces.
Not to mention that you can also extract other data of Binance Chain via full node or APIs, Develop tools and application to help users use Binance Chain and Binance DEX, and of course send and receive BNB tokens.
How BNB Works?
You might be wondering what use is the Binance coin if it isn’t a currency. As a token used on the Binance platform it serves a very valuable purpose. Remember that Binance charges a trading fee for each transaction you make.
How would you like to stop paying transaction fees? With the Binance coin you can, because that’s what it is used for, to pay fees on the Binance exchange.
Rather than paying a fee of $1 for every $1,000 in trades (which can actually add up pretty fast for active traders), you can just use Binance coins to cover the fees. This makes Binance coins extremely useful and valuable to traders on the Binance exchange.
Here’s exactly how it works. Binance will rebate trading fees for those wishing to use the Binance coin when trading – for the first five years. And there is a sliding scale, so in the first year, you can get a 50% rebate of your fees by using Binance coins.
Can You Mine BNB?
You cannot mine BNB as you would a proof-of-work cryptocurrency, since the Binance Blockchain uses the Byzantine Fault Tolerance (BFT) consensus mechanism. Instead, there are validators that earn from securing the network by validating blocks.
What Is a BNB Burn?
Before BNB migrated to Binance Chain, Binance performed coin burns on the Ethereum network using a smart contract burn function. The amount of coins that Binance burns is based on the number of trades of the exchange over three months. Since the Binance Chain launch, BNB coin burns no longer take place on the Ethereum network and now use a specific command on Binance Chain, as opposed to a smart contract.
How Do You Buy BNB?
You can buy BNB on the Binance crypto exchange with a wire or bank transfer, a credit card or debit card, or any other exchanges that offer the cryptocurrency. For the latest list of exchanges and trading pairs for this cryptocurrency, click on our market pairs tab.
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One of Coinworldstory's longest-tenured contributors, and now one of our news,ico,hyip editors, Verna has authored over 6900+ stories for the site. When not writing or editing, He likes to play basketball, play guitar or visit remote places. Verna, to his regret, holds a very small amount of digital currencies.