What Is A Binance Coin?

Binance Coin is the native cryptocurrency of the Binance Smart Chain (BSC) network, a blockchain developed and maintained by Binance.

BSC is currently focused on providing a network for the execution of smart contracts (smart contracts) and decentralized applications, which provide the basis for the functioning of Decentralized Finance (DeFi) and other sectors that need reliability and resistance of a network. blockchain.

Known within the cryptocurrency market for having an easy-to-use blockchain network and low transaction cost, it has increasingly become an alternative to Ethereum, which has already suffered greatly from network congestion, greatly increasing its fees. of transaction.

How Binance Coin came to be

Binance Coin as well as Binance Smart Chain, emerged through the technology team of the eponymous exchange, led by the company’s CEO. BNB emerged as a utility token on the Ethereum blockchain under the ERC-20 standard in 2017. Its purpose was to give the exchange’s users advantages, particularly in terms of trading fees.

Over time, BNB gained new features and ended up being no longer just a utility token in the ecosystem of the company that created it and started to have its blockchain network, the Binance Smart Chain. The relatively more centralized development allowed the network to evolve very quickly, bringing greater malleability to the blockchain, and quickly reaching the top of cryptocurrencies by market capitalization.

What is Binance Coin used for?

The Binance Smart Chain (BSC) network provides an architecture for the execution of decentralized protocols through smart contracts, currently highly demanded by the market. A great example is the Pancake Swap network, which uses the BSC for its execution.

The use of BNB skyrocketed in late 2020 and early 2021 with the growth of
Decentralized Finance, when several projects sought alternatives to the Ethereum network, which until recently dominated this market. Due to its ease of implementation, as well as low transaction costs, many projects today use the BSC for asset tokenization, a trend that seems inevitable across the entire economy. 

Sign-up Bonus

A Crypto sign up bonus is a kind of bonus given through a cryptocurrency trade to new customers as a reward for commencing an account. The sign-up bonus varies with the aid of cryptocurrency alternatives. It is also given after verifying your account and depositing a certain amount of cash into your account balance. Some cryptocurrency exchanges might also require you to make an alternate before granting you the signal-up bonus.

Main advantages of Binance Coin (BNB)

cheaper transactions

This is one of the great advantages of BNB, which sets it apart from its main competitor, Ethereum. Because of this, many developers are using blockchain for their projects, as high fees can alienate new users. Network transfer fees are typically less than 1 cent and vary depending on the level of congestion on the blockchain. 

Developed by a well-known company

Many semi-decentralized projects like Binance Smart Chain are created by anonymous developers or by little-known companies

Ease of tokenization

The BSC network allows tokens to be created much more easily than on the Ethereum network, a significant advantage for the development of this sector that has been growing at an impressive speed

How to mine Binance Coin (BNB)?

With the Proof of Stake Authority protocol, just like traditional Proof of Stake, validators stake tokens to secure the network and collect transaction fees. However, as explained above, the number of active validators, ie those eligible to receive transaction fees, is limited to the 21 stars with the highest number of coins staked. This makes the competition between validators less, providing lower transaction fees.

How to store BNB in ​​the wallet?

As stated above, if you purchase your coins at a broker, there is the possibility of storing them directly on the broker’s own platform. However, there is also the possibility of storing the coins in wallets, which can be digital or physical.

  • online, which stores data in the cloud;
  • mobile (apps) for cell phones;
  • computer software (desktop);
  • hardware (offline) usually on USB devices;
  • paper (paper) is usually printed on metal plates.

The main wallets on the market to store BNB are:

  • Trust Wallet (mobile)
  • Binance Chain Wallet (navegador)
  • Exodus Wallet (desktop)
  • Ledger (hardware wallet)

Binance Coin (BNB) Quote Today

Binance Coin (BNB) is traded on Coinext in Reais (BRL), and its price will vary according to market supply and demand. As of August 2021, the coin has a market capitalization of $62.8 billion.

BNB started trading at around $0.11 in the last quarter of 2017, according to data from Coinmaketcap. After reaching a historic mark above US$20 in the high of the 2017 market, BNB continued to lateralize in the region between US$10 and US$20.

Back to top button