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BNB: A Swiss Army Knife of Cryptocurrencies
With multiple use cases, BNB is the native coin of the BNB Chain ecosystem, powering both the BNB Beacon Chain and BNB Smart Chain.
Examples use cases:
- Reduced trading fees on the Binance exchange.
- Pay for trading fees on Binance DEX (Decentralized Exchange).
- Pay for transaction fees on the BNB Beacon Chain.
- Pay for transaction fees on the BNB Smart Chain.
- Pay for goods and services for both online and in-store purchases (e.g., using Binance Card or Binance Pay).
- Book hotels, flights, and more at Travala.com.
- Community utility token on the BNB Chain ecosystem (such as games and DApps).
- Participate in token sales hosted on the Binance Launchpad.
- Donate on Binance Charity.
- Provide liquidity on Binance Liquid Swap.
What is Binances Token?
BNB is a cryptocurrency launched through an Initial Coin Offering (ICO) that took place from June 26th to July 3rd, 2017 – 11 days before the Binance Exchange opened for trading. The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB.
Although BNB was launched through an ICO, it does not provide users with a claim on Binance profits and does not represent an investment in Binance.
Originally, BNB was issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million BNB was offered in the ICO, but due to periodic burning events and a real-time burning mechanism, the current total supply of BNB is lower. Coin burns are a process of permanently destroying coins, and you can learn more about them in the article What Is a Coin Burn?.
To ensure a more efficient performance, the ERC-20 BNB tokens were later swapped with BEP-2 BNB at a 1:1 ratio.
BEP-2 BNB is the native coin of the Binance Chain, and the mainnet launch was announced on April 18th, 2019.
Since then, Binance has introduced BNB Smart Chain (BSC, formerly Binance Smart Chain), a blockchain network that runs in parallel with the BNB Beacon Chain. This means that BNB is now available in three different forms:
- BNB BEP-2 on the BNB Beacon Chain
- BNB BEP-20 on the BNB Smart Chain
- BNB ERC-20 on the Ethereum network.
What is BNB used for?
BNB has many applications, from paying for travel to buying virtual gifts and creating smart contracts. Millions of BNB have been used for these purposes, according to estimates.
Additionally, BNB can be used to pay for transaction fees on Binance’s trading platform. Approximately two million users have used BNB to pay for trading fees on more than 127 billion trades, amounting to over 40 million BNB.
When trading cryptocurrencies on the Binance Exchange, you can pay your trading fees using either the assets you are trading or with BNB. If you choose to pay in BNB, you will get a special discount of 0.1%.
For frequent traders on Binance, it is beneficial to acquire BNB and use them to pay for trading fees. Make sure to check the current Spot Trading Fee Schedule, as the discount on fees follows a certain pattern. Additionally, the Binance Futures platform has its own Fee Schedule.
In addition to discounted fees, BNB is also powering the Binance DEX (on the Binance Beacon Chain) and hundreds of applications on the BNB Smart Chain (BSC).
This means that BNB can be used outside the Binance trading platform as well. Currently, more than 180 digital assets have been issued on BSC, with millions of users spending BNB for utility purposes related to BSC.
3 Easy Steps To Buy BNB
If you want to acquire BNB, you can do so on Binance or other crypto exchanges in the secondary market. Here are the steps to quickly purchase BNB!
- Sign up for a free account on the Binance website or mobile app.
- Navigate to the “Buy Crypto” link on the top left of the Binance website or app, which will display the available options based on your country.
- Once you’ve bought your crypto, you have the option to store it in your personal crypto wallet or keep it in your Binance account. You can also trade it for other cryptocurrencies or stake it on Binance Earn to earn passive income. If you’re interested in trading your BNB (BNB) on a decentralized exchange, you can check out Trust Wallet which supports a wide range of assets and blockchains.
BNB is a versatile cryptocurrency that serves as the native coin of the Binance Chain ecosystem, powering both the BNB Beacon Chain and BNB Smart Chain. With various use cases such as reduced trading fees on the Binance exchange, payment for transaction fees, booking travel and hotels, participating in token sales, and providing liquidity on Binance Liquid Swap, BNB has become a valuable asset in the cryptocurrency world. As Binance continues to expand its ecosystem, the potential uses for BNB are likely to grow even further.