What is Binance Coin (BNB) and how does it work?
Binance Coin (or BNB) is the token of one of the biggest global cryptocurrency exchanges: Binance. This exchange originally launched in 2017 and instantly gained popularity due to its low fees, cool interface and extravagant competition for traders on the platform. Its aim was to bring crypto trading to the forefront of financial activity globally, and it did so by stating its own ecosystem of services including the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet and Research projects all powered by blockchain. BNB Coin is a key part of this whole ecosystem.
What makes Binance unique is that it has a whole ecosystem of decentralized, blockchain-based networks that have led it to become the most popular leading exchange by volume in several countries with their side organizations attracting massive amounts of interest too. Its continuous drive for development has made it so that the services provided span of different spheres, and the aim of the company has become to be the infrastructure services provider for the entire blockchain ecosystem.
Since launching its BNB token, the exchange has grown in popularity among investors, boosting the use of the platform even more. Due to a huge price increase in 2021, the Binance coin has been on the radar of many in the crypto community, as it grew to a top 5 coin by market capitalization. A strong and well-thought-out deflationary tokenomics, as well as network updates like BEP-95, have made this crypto even more deflationary and viable for several use cases. Following the BEP-95 proposal, modelled after Ethereum’s famous EIP-1559, gas fees on Binance Smart Chain have become even lower, as the network burns a part of the fees to decentralize further.
This has already proved to be a helpful upgrade as it saw the exchange overcome several exploits of protocols on BSC, such as a $200M exploit of Pancake Bunny and several hacks of Cream Finance. Despite these hacks, users have stuck with the exchange due to its low fees and abundance of lucrative coins to trade.
Coin Analysis
Last update 9/6/2022
BNB coin was originally launched between the 26th of June and the 3rd of July 2017 through…
