let's talk about the native token of the binance centralised exchange platform
(1) Reducing transaction costs on Binance There are many uses for the BNB, and they tend to increase over time. However, the majority of investors use it solely to reduce their costs when trading on Binance. Let's take a closer look at all the ways in which the BNB can be used.
(2) Participating in Binance's IEOs Just like Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs) enable projects to raise funds in tokens, the difference being that they take place on exchanges. Binance has its own platform dedicated to IEOs for cryptocurrency projects, called Binance Launchpad.
(3) Commissions on referrals With referral options, you can increase your income on Binance if you hold BNB. For users who refer people when they sign up to Binance, commission can be earned on every transaction made by their referrals. What's more, when a referrer shares their invitation link, they decide how their commission is distributed.
(4) Native token BNB will work on BSC in the same way that ETH works on Ethereum, so it remains BSC's ânative tokenâ. This means that BNB will be used to: Pay âfeesâ to deploy smart contracts on BSC. Bet on selected BSC validators and earn corresponding rewards.Perform cross-chain transactions, such as transferring token assets between BSC, opBNB and Greenfield. Real-time burn To speed up the BNB burn process and make BSC more decentralised, part of the gas fee will be burned. A fixed ratio of the gas charges collected by the validators will be burned in each block. The burn rate can be regulated by the BSC validators. Validator Consensus and Quorum Based on the above design principles, the BSC consensus protocol is to achieve the following objectives: The blocking time must be shorter than that of the Ethereum network, e.g. 3 seconds. A short time is needed to confirm the finality of transactions, e.g. around 10 seconds or less. There is no inflation of the native token: BNB, the block reward is collected from the transaction fee, and it will be paid in BNB
Smart contracts play a key role in DeFi (decentralised finance), enabling the automatic execution of agreements between participants without the need for trust in third parties.
Here's how they work in DeFi:
Automation: smart contracts automatically manage financial transactions (loans, asset swaps) when predefined conditions are met.
Transparency: All contract conditions are available on the blockchain, guaranteeing openness and preventing fraud.
Security: They eliminate intermediaries, reducing risks and transaction costs.
Smart contracts thus greatly improve the security and efficiency of financial operations in DeFi.
Standalone blockchain: Technically, BSC is a standalone blockchain, instead of a layer 2 solution. Most of the core technical and business functions of BSC should be autonomous so that they can function well even if the CB were to shut down for a short period of time.
(1) Ethereum compatibility: The first practical and widely used smart contract platform is Ethereum. To take advantage of the relatively mature applications and community, BSC chooses to be compatible with the existing Ethereum backbone. This means that most dApps, ecosystem components and tools will work with BSC and require no or minimal modification. a BSC node will require similar (or slightly better) hardware specifications and skills to work and function. The implementation should leave room for BSC to catch up with other Ethereum upgrades.
(2) Staking involves consensus and governance: Consensus based on staking is more respectful of the environment and leaves more flexible options for community governance. Not surprisingly, this consensus should lead to improved network performance compared to proof-of-work blockchain systems, i.e. faster blocking time and higher transaction capacity.
(3) Fast block time and fast finality: BSC will implement a fast finality mechanism, allowing blocks to be finalised in two block confirmations under normal circumstances. This, combined with BSC's fast block time of 3 seconds, provides near-instantaneous transaction finality and a good user experience.
What if we went back in time to understand the BSC (BNB Smart Chain) and the BC (Beacon Chain)?
BNB emerged from an Initial Coin Offering (ICO) in 2017, eleven days before the cryptocurrency exchange platform Binance went live. Originally issued as an ERC-20 token, it operates on the Ethereum network and has a total capitalisation limited to 200 million tokens, of which 100 million are distributed at the end of the ICO. The BNB ERC-20 tokens will nevertheless be exchanged for BNB BEP2 tokens at a 1:1 ratio in April 2019, at the launch of the Binance Chain mainnet. They will no longer be ho
The moral is that the price of the iPhone decreases over the years while the value of currencies such as Bitcoin, ether and solana increases and shows a nice resilience on the market.
Stablecoins continue to gain traction as total on-chain transaction count hits 420M for the month of August.
The stablecoin landscape continues to heat up, with transaction counts approaching all time highs, climbing in tandem with the total supply which now stands at US$170B. The CELO ecosystem, in particular, has seen remarkable growth, with its USDT supply reaching US$200M just six months after launching on the emerging Ethereum Layer 2. Concurrently, the Celo blockchain ecosystem introduced the Stabila Foundation, which aims to enhance
financial stability and promote stablecoin utility, especially in emerging markets like Africa, Latin America, and Southeast Asia. Meanwhile, Solana continues to capture the marketâs attention, recording the highest number of stablecoin transactions in August with 108M, narrowly surpassing BNB Chain's 97M, which held the top spot in July. Solana DeFi has been a significant driver of growth for PayPalâs PYUSD stablecoin, which has reached a total market capitalization of US$1B. Of this amount, over US$647M is on Solana, with US$430M locked as collateral on the DeFi protocol Kamino. Stablecoins remain one of the most widely used products to emerge from blockchain technology. As they continue to scale globally, it becomes increasingly important to observe how macroeconomic factors, such as global interest rates and evolving regulatory regimes, influence market participants' approaches to this burgeoning sector.
Source: Artemis, Binance Research As of August 31, 2024