What is Binance Coin (BNB), features of this cryptocurrency, full review of the coin




What is Binance Coin (BNB)?

The bnb coin takes the 7th place in the rating of cryptocurrencies.

Binance is a whole crypto empire, in which, in addition to the traditional spot market, it provides many other services.

The BNB cryptocurrency serves as a digital fuel that fuels the binance ecosystem. The coin allows you to seriously save on paying fees and is exchanged for almost any other asset.

Without bnb coin, futures binance and other innovative services would not be so attractive for large traders, who were able to save extra money when paying fees by holding a certain amount of bnb tokens on their balance. Owners of the binance coin can earn money by storing the asset, conclude transactions directly with counterparties on the P2P platform, and simply save on commissions.

BNB coin is an on-demand token of the Binance Chain blockchain, which is a simple, peer-to-peer system characterized by high throughput and scalability. As a protection, the Binance blockchain uses the Byzantine Fault Tolerance (BFT) consensus mechanism)

The network has a minimal set of functions, but transactions in it are almost instantaneous, blocks are created in less than 1 second, and it is capable of the highest loads. Binance Chain does not support smart contracts, this option was sacrificed for the sake of increasing performance, but it allows the deployment of third-party blockchain projects on the base chain. That is, the Binance ecosystem, in fact, is a competitor to ethereum and some projects have already moved to it. For example, the Aeron ecosystem (ARN), the Enjin gaming blockchain platform (ENJ), the RAVEN PROTOCOL for neural network training, the Gtex gaming platform (GTEX), and the CanYa decentralized freelancer network (CAN). Of course, this immediately provided them with a listing on the binance exchange.




BNB History




The BNB cryptocurrency was launched through an initial coin offering in 2017, 11 days before the Binance cryptocurrency exchange went live.

Initially, binance coin was an ERC-20 token running on the Ethereum network. The total offer was limited to 200 million coins, half of which were sold in the ICO. In April 2019, the legacy ERC-20 BNB was replaced with BEP2 BNB at a 1:1 ratio in April with the launch of the main Binance Chain network, and now they are no longer hosted on Ethereum.

During the transition of BNB to the Binance Chain, the exchange administration performed coin burning on the Ethereum network using the smart contract elimination function. The number of coins that Binance burns depends on the number of transactions of the exchange in three months.

Since the launch of Binance Chain, the burning of BNB coins no longer occurs on the Ethereum network and the function is now activated using a specific command in Binance Chain, rather than a smart contract. Thus, the Changpeng Zhao team protects its cryptocurrency from inflation.

Each quarter, Binance's board of directors buys BNB tokens on the digital market, spending 20% of the profits they made from transaction fees to do so, and then burns them. The strategy is to reduce the number of coins by 50 percent, leaving the final 100 million tokens. Every time this happens, the bnb coin goes up in price a little bit.




Wallet Binance Coin (BNB)




BNB wallet



There are many different Binance Coin (BNB) wallets that differ significantly from each other.

The old-style tokens were stored on the MyEtherWallet wallet and other crypto wallets that support the ERC-20 standard. But, after the transition of the binance coin cryptocurrency to its own blockchain, it is no longer possible to use MEW as a bnb wallet. In addition to the binance deposit, the internal coins of the platforms can be stored on the Official Trust Wallet.

Multi-currency services Atomic Wallet, Coinomi, Exodus.

Hardware Safe Ledger.

If you plan to start a Binance Coin wallet to collect BNB from cranes, then Trust Wallet is suitable, choose a Smart chain cryptocurrency to receive binance coins from FaucetPay faucets.




Where to buy Binance Coin?




The pace of development of the binance crypto platform is simply impressive. The project occupies more and more new niches in the digital market. Therefore, many investors began to pay attention to binance coin. It is best to buy this digital asset on its native exchange, the busiest direction of the bnb/USDT exchange, but there are many other options. If you think that in addition to binance, the internal coin of this exchange is not traded anywhere, then you are mistaken. You can buy bnb on such well-known platforms as Poloniex and KuCoin, the decentralized P2PB2B service, and many other crypto resources. For a complete list of bnb cryptocurrency trading exchanges and available exchange pairs, see the monitoring service coingesko.com.




The possibility of mining coins




To earn bnb tokens, you first need to buy them on the binance exchange and then put them immediately on a deposit at interest. The coin is not available for traditional mining on computing devices. All full nodes are controlled by the project administration, and an outsider cannot become a validator.




Prospects for the BNB cryptocurrency:




The Binance coin is tied to the performance of the exchange. If it continues to thrive, and the coin should theoretically grow in value. In a short period of time, the company has experienced many changes. It opens representative offices in different countries, expands the list of services and supports more and more national currencies, including Russian rubles and Ukrainian hryvnia. The project has a loyal and active community, and in the long run, this should certainly stimulate demand for an internal token.

Just like bitcoin, it can be used for trading or for paying for goods and services. With the help of the Binance token, you can book flights and places in hotels, pay for purchases at auctions and freelance services. Read more about bnb use cases here. Finally , every time the coins are burned, Binance coin goes up in price a little bit.

Advantages of bnb: Reliable protection mechanism; High transaction speed; Protection against inflation; Wide scope of application

Disadvantages of the bnb cryptocurrency: Lack of decentralization.




Conclusion:




As the cryptocurrency market continues to evolve, leading crypto exchanges such as Binance have the potential to grow. If institutional investors and large banks enter the cryptocurrency market in the coming years, this will cause an increase in demand from buyers and the rate of top cryptocurrencies, including bnb, will soar. The coin is recommended for long-term investments.

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