Brief: Binance Coin (BNB) is the native cryptocurrency for the Binance ecosystem.
• **Blockchain:** BNB is a dual-chain architecture cryptocurrency running on both Binance Chain, designed for fast transactions with low fees, and Binance Smart Chain (BSC), an independent smart contract blockchain.
• **Consensus Mechanism:** PoSA is the consensus algorithm used in BSC. This hybrid mechanism of Proof of Stake (PoS) and Delegated Proof of Authority (DPoA) allows for a much shorter block time and lower fees. Validators are elected based on their stake in BNB and reputation.
• **Use Cases:** BNB is used for a variety of purposes within the Binance ecosystem. Users can pay trading fees on the Binance Exchange at a discount using the native token, participate in token sales on Binance Launchpad, and use BNB across DeFi applications including lending, staking, and yield farming on Binance. Besides, BNB is accepted as payment by a range of merchants and service providers.
• **Tokenomics:** The initial total supply of BNB was 200 million tokens. Binance carries out the quarterly token burn to decrease the supply, using 20% of its earnings to repurchase and burn BNB. This deflationary feature is supposed to make it a more scarce token, bringing more value to the token over time. The intention is to burn half of the initial supply, reducing it to 100 million BNB.
• **Ecosystem:** Besides the core exchange and smart contract functionality, BNB is being used in a very diversified number of applications in decentralized exchanges, NFT platforms, and other blockchain projects running on the Binance Smart Chain. Diverse use cases and versatility will make BNB be a part of the integral stage of the Binance ecosystem.
• **Security:** Binance Chain and Binance Smart Chain are secure in a number of ways—multi-layer security through cryptographic signatures and decentralized validators protect against any attacks and prevent unauthorized access. Besides, the Binance exchange has its SAFU fund to cover any possible loss following a hack or breach.
