BNB, short for “Build and Build” (formerly “Binance Coin”), is the native cryptocurrency of the Binance ecosystem, one of the largest and most influential blockchain platforms globally. Initially launched as a utility token for discounted trading fees on the Binance Exchange, BNB has evolved into a multi-purpose asset powering the Binance Smart Chain (BSC), decentralized applications (dApps), and various financial services. Its versatility and integration into the Binance ecosystem make it a cornerstone of the cryptocurrency industry.
What Is BNB?
BNB is a cryptocurrency created by Binance, a leading global cryptocurrency exchange, to serve as the backbone of its ecosystem. It was initially launched as an ERC-20 token on the Ethereum blockchain in 2017 but later migrated to Binance’s proprietary blockchain infrastructure. Today, BNB operates on both the Binance Chain and Binance Smart Chain, enabling a wide range of use cases, including transaction fees, staking, decentralized finance (DeFi), and token burns.
BNB is not just a utility token but also a governance token, allowing holders to participate in decision-making processes within the Binance ecosystem. Its growing adoption and integration into various blockchain applications have solidified its position as one of the top cryptocurrencies by market capitalization.
Who Created BNB?
BNB was created by Binance, a cryptocurrency exchange founded by Changpeng Zhao (commonly known as “CZ”) and Yi He in 2017. CZ, a prominent figure in the blockchain space, envisioned BNB as a way to enhance user experience on the Binance platform while fostering the growth of the broader cryptocurrency ecosystem.
The Binance team initially launched BNB through an Initial Coin Offering (ICO) in July 2017, raising approximately $15 million. The funds were used to develop the Binance Exchange and its accompanying ecosystem, which has since expanded to include the Binance Chain, Binance Smart Chain, and various other blockchain-based services.
When Was BNB Launched?
BNB was officially launched in July 2017 during Binance’s ICO. The ICO lasted for several weeks, during which 100 million BNB tokens were sold to investors at a price of $0.10 per token. The total supply of BNB was initially capped at 200 million tokens, with the remaining 100 million allocated to the Binance team and early contributors.
In April 2019, Binance launched the Binance Chain, a high-performance blockchain designed for fast and secure transactions. BNB transitioned from an ERC-20 token to a native token on the Binance Chain. Later, in September 2020, Binance introduced the Binance Smart Chain, a parallel blockchain supporting smart contracts and DeFi applications, further expanding BNB’s utility.
Where Is BNB Used?
BNB is used across the Binance ecosystem and beyond. Its primary use cases include:
- Paying for transaction fees on the Binance Exchange, where users receive discounts for using BNB.
- Fueling transactions and smart contracts on the Binance Smart Chain.
- Participating in token sales on Binance Launchpad, a platform for new cryptocurrency projects.
- Staking and earning rewards in DeFi protocols built on Binance Smart Chain.
- Paying for goods and services through merchants that accept BNB as a payment method.
- Participating in governance decisions within the Binance ecosystem.
Additionally, BNB is supported by numerous third-party platforms, wallets, and applications, making it a widely accepted cryptocurrency.
Why Is BNB Important?
BNB is important because it serves as the foundation of the Binance ecosystem, one of the most influential players in the cryptocurrency industry. Its utility extends beyond the Binance Exchange, powering decentralized applications, DeFi protocols, and blockchain-based services on the Binance Smart Chain.
BNB’s tokenomics also contribute to its significance. Binance conducts regular token burns, permanently removing a portion of BNB’s supply to create scarcity and increase its value over time. This deflationary mechanism, combined with its wide range of use cases, has made BNB a valuable asset for both investors and users.
Furthermore, BNB’s role in reducing transaction fees and enabling access to exclusive features on Binance has made it a popular choice among traders and developers. Its integration into various blockchain applications has also positioned it as a key player in the broader cryptocurrency ecosystem.
How Does BNB Work?
BNB operates on two blockchains: Binance Chain and Binance Smart Chain. On Binance Chain, BNB functions as the native token for transaction fees and asset transfers. On Binance Smart Chain, BNB powers smart contracts, decentralized applications, and DeFi protocols.
The token’s utility is enhanced by its deflationary model. Binance conducts quarterly token burns, using 20% of its profits to buy back and destroy BNB tokens. This process reduces the total supply of BNB, creating scarcity and potentially increasing its value over time.
Users can acquire BNB through cryptocurrency exchanges, including Binance, or by participating in Binance-related activities such as staking and liquidity mining. Once acquired, BNB can be stored in compatible wallets, including Binance’s Trust Wallet, and used for various purposes within the Binance ecosystem and beyond.
By combining utility, deflationary economics, and integration into a robust ecosystem, BNB has become a versatile and valuable cryptocurrency in the blockchain space.
