BNB Definition
BNB (Binance Coin) is a digital currency created by Binance, one of the largest cryptocurrency exchanges in the world. It’s built on the Ethereum blockchain, following the ERC20 standard but has now transitioned to Binance’s own blockchain, Binance Chain. It serves multiple functions within the Binance ecosystem, including paying for trading fees, participating in token sales, and more.
BNB Key Points
- BNB was initially an ERC20 token but has transitioned to Binance Chain.
- It is used to pay for various fees within the Binance exchange, like trading fees, transaction fees, and listing fees.
- Holding BNB also qualifies holders to participate in token sales hosted on Binance Launchpad.
- Binance also periodically burns BNB coins, reducing the total supply and potentially increasing its value.
What is BNB?
BNB, or Binance Coin, is the native cryptocurrency of the Binance exchange. It serves as an integral part of the Binance ecosystem, streamlining transactions and offering incentives for holders. Created in 2017, BNB initially existed on the Ethereum blockchain, but in 2019, it migrated to Binance Chain, a blockchain developed by Binance.
Who uses BNB?
BNB can be used by anyone, but it’s most advantageous for traders and investors who operate on the Binance exchange. It’s used to pay for transaction and trading fees, earn rewards, and participate in token sales on Binance Launchpad. It can be bought, sold, or traded for other cryptocurrencies.
Where is BNB used?
BNB is predominantly used on the Binance exchange and any applications or platforms that accept it. However, as the Binance blockchain grows, platforms outside the exchange also accept BNB as a form of payment or utility token.
Why use BNB?
Using BNB provides several benefits. Traders on the Binance platform can enjoy discounted fees when they opt to pay with BNB. BNB holders can participate in new token launches through Binance Launchpad. Binance also performs periodic “burns” of BNB, effectively reducing the total supply, which could potentially increase the value of the remaining BNB.
How to use BNB?
To use BNB, one needs a digital wallet support Binance Chain. After purchasing BNB, it can be used to pay for fees on Binance, participate in token sales, or traded with other cryptocurrencies.
