$BNB What is a BNB and how does it work?

Overview created by AI

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BNB, or Binance Coin, is a cryptocurrency created by the Binance exchange. Initially, it was used to pay transaction fees with a discount on Binance, but its use has expanded to other areas, including payments, smart contracts, and development on the BNB Chain. BNB functions as the native currency of the BNB Chain, allowing for fast and low-cost transactions within its ecosystem.

How does BNB work?

Initially, as an ERC-20 token on Ethereum:

BNB started as a token on the Ethereum network, offering discounts on Binance trading fees.

Migration to Binance Chain:

Subsequently, BNB became the native currency of Binance Chain, a blockchain built by Binance designed for fast and efficient transactions.

BNB Chain:

BNB Chain consists of two chains: BNB Beacon Chain (for governance and staking) and BNB Smart Chain (for smart contracts and decentralized applications).

Utilities:

BNB is used for:

Paying transaction fees on Binance and BNB Chain.

Participating in project presales on Binance Launchpad.

Purchasing goods and services, both online and in stores that accept cryptocurrencies.

Accessing rewards and promotions within Binance. $BNB