Binance Coin is the native token of the Binance Exchange, as well as powering the titular Binance Smart Chain which serves as the infrastructure for their entire blockchain ecosystem.
What is Binance Coin?
- Binance Coin (BNB) is native token of the main Binance Chain blockchain. Binance is one of the biggest cryptocurrency exchanges globally based on daily trading volume.
- Binance is a decentralized, blockchain-based network that has continuously developed with the mission of becoming an infrastructure services provider for the entire blockchain ecosystem.
- Binance Coin has gained popularity among investors and went through a significant price increase at the beginning of 2021 which strongly benefited the exchange.
- BNB was first launched as a traditional ERC-20 token on the Ethereum blockchain, but started being issued from Binance blockchain after Binance announced its own.
|Token Name||Binance Coin|
|Token Type/Protocol||Binance Blockchain|
|Total Token Supply||168,137,036|
|Current Circulating Supply||See CoinMarketCap|
|Market Capitalisation||See CoinMarketCap|
|Token Creation Date||July 2017|
|Can it be mined?||No|
Who is behind Binance Coin?
The founder and CEO of Binance, Changpeng Zhao previously worked as the head of tradebook futures development. After 2013, he has been actively involved with blockchain technology and cryptocurrencies, and officially launched Binance in 2017.
Apart from Changpeng Zhao, Binance is co-founded by He-Yi. She is currently a chief marketing officer. In 2014 she also co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time, before joining Zhao.
What is the purpose of Binance Coin?
Binance Coin is used to trade and pay fees on the Binance cryptocurrency exchange. It aims to bring cryptocurrency to the forefront of financial activity globally. Moreover, it is also an integral part of the successful functioning of many of the Binance sub-projects.
- The Binance network includes the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet and Research projects.
- Binance network is secured by the Tendermint byzantine-fault-tolerant (BFT) which is on proof-of-work (PoW) consensus. The BFT involves different types of nodes; validator, witness, and accelerator nodes.
- Binance Coin operates on two chains – the Binance Chain, which is the original chain for transactions, and the newer Binance Smart Chain, which can support more complex features, like smart contracts.
- BNB tokens can also be used beyond the Binance ecosystem, for example, it can be used for payment methods across different services, including credit crypto card bills, online purchases, travel, entertainment, and transfers.
- BNB ensures its growth and stability by burning as Binance will use 20% of their profits to get BNB tokens and burn them to reduce the total supply.
- Due to Binance works as a company, BNB tokens can be centralised through the immense control Binance has over the coin. Therefore, it opens up the possibility of blockchain manipulation that might affect other holders.
- As a successful and fast growing blockchain, Binance is put on a target for cyber attackers. In March 2018, the system was successfully hacked, as well as in May 2019. The incident led to the loss of around 7,000 BTC.
- There are plenty of Heavy Competition With Other Smart Contract Cryptos such as Ethereum 2.0 which will use proof-of-stake and DeFi ecosystem, as well as Cardano.
News and Updates:
- Binance has announced that it will halt the marketplace for the Chinese yuan over-the-counter (OTC) trading on its platform following China’s latest crypto trading crackdown.
- The launch of a $1 billion fund has been announced on 12th October, 2021, in order to develop the Binance Smart Chain (BSC) ecosystem as well as talent development and the liquidity incentive program.
- Binance received a warning from South Africa’s Financial Sector Conduct Authority as it lacked authority to regulate crypto-related investments in South Africa resulting in the South African public to exercise caution in any investments involving Binance Group.
Community & Whitepaper Links:
Official Website: https://www.binance.com/en
White Paper: https://www.exodus.com/assets/docs/binance-coin-whitepaper.pdf
*As cryptocurrency and digital tokens involve high risks, investors may lose all their investment money and should study information carefully, making investments according to their own risk profile.
dYdX is a DeFi protocol focusing on perpetual contracts products built on top of the Starkware layer-2 network.
ApeCoin is the famous NFT project, Bored Ape Yacht Club (BAYC)’s native token. It works as a utility and government token powering the APE ecosystem.
Convex Finance (CVX)
Convex Finance is a DeFi platform designed to provide additional yield and ease of use to the stakers and liquidity providers of CRV tokens.