What is Binance Coin (BNB): Complete Guide for Beginners and Investors
Binance Coin (BNB) is the native cryptocurrency of the Binance platform, one of the largest cryptocurrency exchanges in the world. Originally launched as a utility token for discounted trading fees, BNB has expanded its utility to a vast array of applications within the Binance ecosystem and beyond.
Binance Coin was launched in July 2017 as part of an ICO campaign by Binance. It was initially an ERC-20 token but later was transitioned to Binance's own blockchain, Binance Chain, in 2019. BNB has seen widespread adoption as a utility token for transaction fee discounts, travel bookings, entertainment, and financial services, contributing to its growth in market capitalization.
TECHNOLOGY
BNB operates on Binance Chain, a blockchain platform developed by Binance to provide a fast and secure on-chain trading experience. Leveraging the Tendermint byzantine-fault-tolerant consensus mechanism, Binance Chain facilitates the trading of digital assets and provides the foundation for Binance DEX.
USE CASES
BNB is extensively used for trading fee discounts on Binance Exchange. Other use cases include: Paying for transaction fees on Binance Chain and Binance Smart Chain; Booking travel accommodations; Peer-to-peer transactions within the Binance ecosystem; Leveraging DeFi applications.
FORECAST
The outlook for BNB is positive with its growing utility, especially as Binance expands its influence in the crypto space. Analysts observe that the burning mechanism, reducing supply, alongside increased use cases, could enhance BNB's price. Future price movements will also depend on regulatory developments and the performance of the Binance platform.
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