**BNB (Binance Coin)** is the native cryptocurrency of **Binance**, one of the largest crypto asset exchange platforms in the world. Initially created as an **ERC-20** token on the Ethereum network, it now primarily operates on **BNB Chain**, a blockchain developed by Binance. Here are its key aspects:
### 1. **Main functions**:
- **Fee payment**: Reduces fees on transactions within Binance and BNB Chain.
- **Participation in token launches**: Exclusive access to new cryptocurrencies on Binance Launchpad.
- **Rewards and staking**: Generates income through staking or reward programs.
- **Utility in DeFi**: Used in lending, farming, and swaps in decentralized applications (DApps) on BNB Chain.
### 2. **BNB Chain**:
- **BSC (Binance Smart Chain)**: Compatible with Ethereum (EVM), focused on smart contracts and low fees.
- **Beacon Chain**: Manages staking and governance (currently transitioning to **BNB Greenfield** for decentralized storage).
- **Supports thousands of DApps**, like PancakeSwap and Venus Protocol.
### 3. **Token Burn**:
- Binance periodically burns BNB to reduce its supply (currently **~149 million in circulation**), increasing its scarcity.
### 4. **Price history**:
- Launched in 2017 at ~$0.10.
- Reached all-time highs of ~$690 in 2021.
- Maintains a central role in the Binance ecosystem.
### 5. **Critiques and risks**:
- **Centralization**: BNB Chain depends on validators selected by Binance.
- **Regulation**: Binance faces legal scrutiny in several countries.
- **Volatility**: Like any cryptocurrency, its price fluctuates.
### 💡 **Tip**:
If you use BNB, store it in non-custodial wallets like **Trust Wallet** or **MetaMask** (configured for BNB Chain), never leave large amounts on exchanges.
**In summary**: BNB is more than a cryptocurrency; it is the heart of an ecosystem that includes trading, DeFi, NFTs, and decentralized applications, powered by Binance's infrastructure.