BNB: The Backbone of the Binance Ecosystem
BNB (Binance Coin) is the native cryptocurrency of the Binance ecosystem, initially launched in 2017 as an ERC-20 token on the Ethereum blockchain. However, it later migrated to Binance Chain and now operates on Binance Smart Chain (BSC), a high-performance blockchain tailored for decentralized applications (DApps) and smart contracts.
BNB plays a crucial role within Binance, the worldâs largest cryptocurrency exchange. It offers users several advantages, including discounted trading fees when used to pay for transactions on the platform. BNB can also be utilized in Binanceâs Launchpad for participating in token sales of new blockchain projects, providing early access to potential investment opportunities.
Beyond Binance, BNB is widely accepted across the broader crypto ecosystem, functioning as a utility token in various applications such as payment processing, booking travel, and purchasing virtual goods. BNBâs versatility has made it one of the top cryptocurrencies by market capitalization.
A key feature is Binance's quarterly BNB burn, where a portion of BNB supply is permanently removed from circulation, reducing the total supply and potentially increasing its scarcity and value over time. This deflationary model has contributed to BNBâs long-term growth and appeal.
