BNB: A Key Player in the Crypto Ecosystem
BNB (formerly known as Binance Coin) is the native cryptocurrency of the Binance ecosystem, one of the world’s largest and most influential crypto exchanges. Launched in 2017 through an Initial Coin Offering (ICO), BNB originally operated on the Ethereum blockchain as an ERC-20 token. It later transitioned to Binance’s own blockchain, Binance Chain, and now functions on both Binance Chain and Binance Smart Chain (BSC), which supports smart contracts and decentralized applications (Apps).
BNB serves multiple purposes within the Binance ecosystem. It is used to pay for trading fees on the Binance exchange at discounted rates, participate in token sales on Binance Launchpad, and settle transaction fees on BSC. Additionally, it is increasingly accepted as a form of payment by various merchants and services outside of Binance.
One of the features that supports BNB’s value is the quarterly coin burn process. Binance uses a portion of its profits to buy back and burn (permanently remove) BNB tokens, reducing the total supply over time.
As of now, BNB is among the top cryptocurrencies by market capitalization. Its utility, strong ecosystem backing, and continued development make it a prominent asset in the broader blockchain and crypto landscape.
