The cryptocurrency BNB, also known as Binance Coin, is the native token of
The BNB token, or Binance Coin, is the native cryptocurrency of Binance, one of the largest cryptocurrency exchanges in the world. I will explain to you what it is and what it is used for:
What is BNB?
BNB was launched in 2017 as part of an initial coin offering (ICO) to fund the development of Binance. Originally, it was created as an ERC-20 token on the Ethereum blockchain, but in 2019, with the launch of Binance Chain (and later Binance Smart Chain, now called BNB Chain), BNB was migrated to its own blockchain. Today, it is the native token of BNB Chain, a decentralized network that supports smart contracts and decentralized applications (dApps).
What is BNB used for?
BNB has various utilities, both within the Binance ecosystem and outside of it:
Fee discounts: On the Binance exchange, paying trading fees (such as to buy or sell cryptocurrencies) with BNB gives users a discount. This benefit was more aggressive in the early years, but still exists on a smaller scale.
Transactions on BNB Chain: BNB is used to pay gas fees (processing costs) on the BNB Chain, similar to what Ethereum does on its network.
Participation in events: It is common to use BNB to participate in token launches (Launchpool or Launchpad) on Binance or in promotions such as "Learn & Earn".
Payments: Outside the exchange, BNB can be used in some services that accept cryptocurrencies, such as online shopping or travel bookings, through Binance partnerships.
Staking and DeFi: On BNB Chain, you can use BNB for staking (locking tokens to earn rewards) or on decentralized finance (DeFi) platforms.
Why is it important?
BNB is a pillar of the Binance ecosystem and BNB Chain, connecting the centralized exchange with the decentralized world. It reflects the success of Binance and the growth of the use of its blockchain.
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