BNB (Binance Coin)

What is BNB?

BNB (Binance Coin) is a cryptocurrency token, launched by the world's biggest crypto exchange Binance. The coin initially was created in 2017 on the Ethereum network (ERC-20), but later relocated to its own network Binance Chain. BNB is used within the Binance system to cover charges, participate in token sales and many other purposes.

Main characteristics of BNB:

• Limited emission - up to 200 million coins.
• Certain coins get "burned" (burning) every now and then, reducing the total amount.
• It is used inside the Binance exchange and on other blockchains such as BNB Smart Chain (BSC).

History of BNB

BNB emerged in 2017 in the Binance ICO when coins were offered for $0.10. Initially, it was for the use of BNB as a house currency for paying exchange fees at a lower rate. Over time, Binance expanded the usage of BNB much more, creating a full-fledged cryptocurrency with several features.

Binance also developed its own blockchain, Binance Chain, in 2019 and migrated BNB from Ethereum to the new blockchain. Later, the BNB Smart Chain (BSC) was released, on which users can build and execute decentralized applications (dApps) at low fees.

Where and how to buy BNB?

BNB is traded on many exchanges, but above all, you should buy it on the Binance exchange. You can also buy BNB token on other big exchanges:

• Crypto exchanges - Binance, Bybit, BitGet, Blofin, OKX and others.
• Exchangers - websites which allow you to buy BNB with fiat (regular) currency.
• P2P platforms - buying directly from other users.

You can hold BNB in Trust Wallet, MetaMask, hardware wallets Ledger and Trezor, or the Binance exchange wallet.

How is BNB mined?

BNB cannot be mined in the traditional sense, as its emission was completely settled at the creation stage. However, users are able to obtain BNB by staking and yield farming on the BSC network.

BNB staking allows coin holders to earn passive income for network maintenance. Additionally, Binance periodically holds rewards programs, allowing users to receive BNB in ​​various forms.

Applying BNB in ​​the real economy

BNB is used for many things not only on the Binance exchange, but also elsewhere:

• Payment for fees on Binance and BNB Smart Chain.
• Donations to IEOs (initial exchange offerings) on Binance Launchpad.
• Pay for services and products - there are many firms that use BNB as a form of payment.
• Use in DeFi — farming, lending, etc.
• Buy NFT — many marketplaces have settlements in BNB.

Alternatives for BNB

Although one of the most popular crypto assets, BNB has some competitors:

• Ethereum (ETH) — largest dApps and DeFi ecosystem.
• Solana (SOL) — fast blockchain network with low fees.
• Avalanche (AVAX) — alternative to BSC in DeFi.
• Polygon (MATIC) — scaling solution for Ethereum.

Weaknesses of BNB

Despite popularity, BNB has weaknesses as well:

• Centralization — Binance controls a lot of coins and the network.
• Regulatory risks — Binance is in contention by various countries.
• Restricted use outside the Binance ecosystem.
  
  

The Future of the BNB Cryptocurrency

BNB is more than just an exchange token, and it is indeed a full cryptocurrency asset that has massive applications. Its demand relies heavily on whether or not Binance exchange and its blockchains are profitable. In the event that the exchange continues to expand its ecosystem, BNB will continue to be one of the largest cryptocurrencies.

The destiny of BNB is very much interlinked with the development of Binance and the BNB Chain ecosystem. The token continues to grow its application in DeFi, NFT, and Web3 initiatives. The burning process of the token, carried out periodically, reduces the supply, which has a positive effect on the price. However, regulatory risks remain the biggest concern. If Binance can maintain its position, then BNB will remain one of the leading cryptocurrencies in the global market.