BNB - The Basics
Binance Coin (BNB)
BNB is a cryptocurrency that was created by the Binance exchange, one of the world's leading cryptocurrency exchanges. Binance Coin is used to facilitate transactions on the Binance platform, including the payment of fees for trading and listing on the exchange.
BNB was initially created as an ERC-20 token on the Ethereum blockchain, but it has since moved to its own native blockchain called Binance Chain. Binance Coin is used on the Binance Chain to facilitate the transfer of assets and to pay for fees associated with using the platform.
Advantages of BNB
One of the main advantages of BNB is that it can be used to pay for fees on the Binance exchange at a discounted rate. This can make trading on the Binance platform more affordable for users, which has helped to drive its popularity.
In addition to being used on the Binance platform, BNB has also gained wider adoption as a form of payment and a store of value. It is listed on a number of other exchanges and can be bought and sold on these platforms.
BNB has performed well since its launch, with its value increasing significantly over time. This has made it an attractive investment for those looking to gain exposure to the cryptocurrency market.
BNB has been branded and marketed as “BNB” for “Build and Build,” to encourage development on the network.
Functions of BNB
The BNB coin has two functions:
Gas Tokens for the BNB Chain
On Chain Governance Token for the Network
Overall, BNB is a well-established cryptocurrency that is widely used on the Binance platform and beyond. It has gained a reputation as a reliable and effective means of facilitating transactions and paying for fees, and it has the potential to continue to grow in value and adoption in the future. However, like all cryptocurrencies, BNB is highly volatile and carries a high level of risk. It is important for investors to carefully consider their risk tolerance and to understand the potential risks associated with investing in BNB or any other cryptocurrency. Nothing on this website is financial advice.
BNB vs Smart Chain
Binance Coin (BNB) is a cryptocurrency that was created by the Binance exchange and is used to facilitate transactions on the Binance platform, including the payment of fees for trading and listing on the exchange. Binance Smart Chain (BSC) is a decentralized blockchain platform developed by the Binance exchange that enables developers to build and deploy decentralized applications (dApps) and other blockchain-based projects.
One of the main differences between BNB and BSC is the purpose they serve. BNB is primarily used as a means of facilitating transactions and paying for fees on the Binance platform, while BSC is a smart contract platform that is used for building and deploying dApps and other blockchain-based projects.
Another difference is the underlying technology that each platform uses. BNB is a cryptocurrency that is built on the Ethereum blockchain and was initially created as an ERC-20 token. It has since moved to its own native blockchain called Binance Chain. BSC, on the other hand, is a smart contract platform that is built on its own native blockchain and uses a different consensus mechanism and virtual machine than Ethereum. (Article on what is a Virtual Machine).
In terms of adoption and usage, BNB has gained wider acceptance as a form of payment and a store of value, and it is listed on a number of exchanges in addition to being used on the Binance platform. BSC, on the other hand, is still relatively new and is primarily used by developers and users who are interested in building and using dApps and other blockchain-based projects on the Binance platform.
Overall, BNB and BSC are two distinct platforms that serve different purposes and are based on different technologies. BNB is a cryptocurrency that is primarily used for facilitating transactions and paying for fees on the Binance platform, while BSC is a smart contract platform that is used for building and deploying dApps and other blockchain-based projects.
