What is BNB?
BNB, previously known as Binance Coin, is the cryptocurrency coin created by the Binance exchange. Initially launched on the Ethereum blockchain as an ERC-20 token in July 2017, BNB transitioned to its own network known as the BNB Smart Chain in February 2019. It has since become the native coin of the Binance Chain, serving various purposes within the Binance ecosystem.
What is Binance?
Founded in July 2017 by Changpeng Zhao and He Yi, Binance quickly emerged as one of the leading cryptocurrency exchanges worldwide. The platform started with an initial coin offering (ICO) and has expanded its services significantly, offering a spot market, futures market, and a decentralized exchange known as Binance DEX. This growth has positioned Binance as a major player in terms of trading volume and market share.
Use Cases of BNB
BNB was designed primarily for use on the Binance platform, allowing users to pay discounted trading fees. Beyond this initial functionality, the coin has evolved to cover a variety of use cases, both within and outside of the Binance ecosystem. Some of the prominent applications of BNB include:
- Reduced trading fees on the Binance platform
- Participation in the IEO lottery
- Dust conversion for small balances
- Serving as a native token within the Binance Chain
Moreover, BNB can also be used as any other cryptocurrency to pay for goods and services where accepted. As the use cases of BNB continue to expand, its importance within the cryptocurrency market remains significant.
