BNB (Binance Coin) is the native cryptocurrency of the Binance exchange, one of the world's largest cryptocurrency trading platforms. Originally, BNB was created as a utility token to pay for trading fees on Binance at a discounted rate. However, over time, its use case has expanded.
Here are some key points about BNB:
1. Utility: BNB can be used for paying transaction fees on the Binance exchange, as well as on other platforms that accept it. Binance also periodically burns (destroys) a portion of the total BNB supply to reduce its overall supply, which is aimed at increasing its value over time.
2. Binance Smart Chain (BSC): BNB also powers Binance Smart Chain (BSC), a blockchain platform for decentralized applications (dApps) and smart contracts. BSC has gained popularity due to its low transaction fees and faster processing times compared to other platforms like Ethereum.
3. Cross-Platform Use: Beyond the Binance ecosystem, BNB can be used for payments in various services, including travel bookings, entertainment, and more, as it has been integrated into several third-party services.
4. Staking and DeFi: BNB is used in staking and decentralized finance (DeFi) applications. This allows users to earn rewards and participate in various DeFi protocols built on Binance Smart Chain.
5. Tokenomics: BNB started with a total supply of 200 million tokens. Binance has implemented a "burn" mechanism to decrease the supply over time, making the remaining tokens more scarce and potentially increasing their value.
BNB has evolved from a simple exchange fee token to a crucial part of the Binance ecosystem and the broader cryptocurrency landscape.