Applications and Benefits of Using the BNB Cryptocurrency
BNB is the cryptocurrency that powers the Binance Chain ecosystem. As one of the most popular utility tokens worldwide, not only can you transact BNB like any other cryptocurrency, but BNB also has a wide range of applications and use cases.
Use BNB to pay for goods and services, settle transaction fees on the Binance Smart Chain, participate in exclusive token sales, and much more.
Currently, Binance Earn offers two types of profits - Guaranteed and High Yield. Users can choose to invest their cryptocurrencies for predictable returns or opt for high-yield staking coins that provide above-average gains, albeit with corresponding risks to the invested capital. Only invest what you can afford to lose, regardless of how high potential returns may be.
Guaranteed
If you're new to the world of cryptocurrencies, you can start with products listed under [Guaranteed]. These products offer relatively stable yields, and you can retrieve your capital upon redemption or at the end of the lock-up period, if applicable.
1.1 Simple Earn Simple Earn offers two types of products - Flexible Products and Locked Products. Similar to a bank's savings account, you can deposit your cryptocurrencies and earn daily interest on your idle funds.
1.2 Launchpool When users stake their cryptocurrency assets in DeFi projects, such as providing liquidity to a liquidity pool, they receive rewards. By reinvesting these rewards, users can engage in a process known as Yield Farming.
1.3 BNB Vault BNB Vault is a capital-guaranteed investment product designed to help your inactive cryptocurrencies generate returns. 1.4 ETH Staking
Binance has launched the ETH Staking service to provide an accessible platform for Ethereum staking to all users. It starts with just 0.1 ETH and Binance covers all validator operational expenses and supports chain penalty risks, where applicable. All applicable on-chain staking rewards will be distributed to users.
In addition to these products, there are various others that may be attractive and suitable based on your investment profile. Be sure to read about the benefits of using the Earn section provided by Binance.
The evolution in Ethereum's roadmap came with the Shanghai Update, launched in April 2023. This update, notable for introducing EIP-4895, brought a crucial innovation by allowing ETH validators to unlock staked funds on the network. As a direct result, staked ETH and associated rewards became readily accessible, leading to a substantial increase in ETH liquidity in the cryptocurrency market.
The Merge
The "Merge" update involved a fundamental transition of Ethereum's consensus mechanisms from Proof of Work (PoW) to Proof of Stake (PoS). This change resulted in a more sustainable and energy-efficient Ethereum.
The Surge
The "Surge" aims to increase Ethereum's processing capacity to up to 100,000 transactions per second through the implementation of Sharding, a scalability technique.
Dencun Fork
The Dencun update on the Ethereum Mainnet brings with it the implementation of six Ethereum Improvement Proposals (EIPs) focused on execution logic. Among these, EIP-4844 stands out for introducing innovative functionality specifically tailored for second-layer solutions, promising a significant reduction in transaction fees.
Ethereum (ETH), the world's second-largest blockchain project, has paved the way for the emergence of revolutionary new technologies. One of these is DeFi.
DeFi, short for Decentralized Finance, refers to a set of financial services and products such as loans, transfers, and payment systems that operate on a blockchain, a type of decentralized and immutable database. Typically, these solutions are not controlled by intermediaries such as banks or other financial institutions.
Operations on DeFi protocols are described and executed by algorithms and smart contracts, which are self-executing computer programs. A practical example to understand how they work is a loan:
An individual can borrow money from another person in a peer-to-peer transaction. The terms of transfer, amounts, interest rates, collateral, and all details are predefined in these automated contracts and executed by them. There is no need to rely on a bank or another entity with its hefty fees to intermediate the operation.
Therefore, the main goal of this technology is to create a global decentralized financial system that is independent, cost-effective, less bureaucratic, and accessible to everyone.