Binance Coin (BNB)

Binance Coin (BNB) is the cryptocurrency created by Binance exchange, the world’s largest centralized cryptocurrency exchange (CEX) by trading volume, with over USD $14 billion in volume daily.

BNB is a utility token that can be traded like any other cryptocurrency, but that can also be used to pay for goods and services, participate in token sales, buy virtual gifts, reduce trading fees, make loans and transfers and make credit card payments.

Binance coin started life on the Ethereum blockchain as an ERC20 token but has since moved over to Binance’s own blockchain, called Binance Chain.

The Binance Chain is made up of two blockchains both using BNB:

BNB Beacon Chain – handles BNB Chain governance
BNB Smart Chain (BSC) – uses Ethereum Virtual Machine (EVM) to support smart contracts and works with Ethereum DApps.

BNB was launched in 2017 during an initial coin offering of 200 million BNB tokens.

The ICO process broke down the token distribution as follows:

10% to angel investors
40% to the founding team
50% to other participants

BNB uses an auto-burn mechanism every quarter to adjust the BNB total supply to 100,000,000 BNB.

BNB also uses the Binance Evolution Proposal (BEP)-95 to burn around 860 BND daily.

The purpose of this is to reduce supply and maximize the value of the tokens that are left.

Binance Coin holders are provided a long-term growth plan that’s planned out in advance.

Related Terms

Token

A Token is a digital asset that operates on a parent blockchain or on another digital asset’s blockchain because it doesn’t have a blockchain of its own. The term “token” also tends to describe almost all other cryptocurrencies other than Bitcoin and Ethereum, the two largest cryptocurrencies in existence today. Tokens have multiple purposes and use cases.

Binance

Binance is the largest cryptocurrency exchange by daily trading volume in the world. It experienced US $34 trillion in trading volume in 2021. The Binance trading platform is known for low trading fees, a large number of supported cryptocurrencies, and a large number of order types, including Limit orders, market orders, stop-limit orders, trailing stop orders, post-only orders, peer-to-peer trading, margin trading, and one-cancels-the-other orders

Total Supply

Total Supply refers to the total amount of coins or tokens of a specific cryptocurrency that have been created or mined, that are in circulation, including those that are locked or reserved. Coins that have been burned or destroyed should be subtracted from the total supply amount.

Ethereum (ETH)

Ethereum is a decentralized blockchain platform that makes digital money, global payments, and applications possible using open-source software and smart contract functionality. The big difference between the two is that Ethereum is programmable, meaning you can build and use decentralized apps on the network. That means the Ethereum blockchain can be programmed to do virtually anything.

Metaverse

The Metaverse should give you the opportunity to do virtually anything you can do in the “real” world, but online…virtually. Some common characteristics of the metaverse that are discussed today include the use of virtual reality (VR) interfaces (goggles, headsets, etc.), augmented personal avatars that represent you in the digital world, and ownership of digital goods.