What do you know about the digital currency BNB?
The **BNB** currency is the native digital currency associated with the **Binance** platform, one of the largest cryptocurrency trading platforms globally in terms of trading volume and liquidity[5][1]. It was launched in **July 2017** initially as an ERC-20 token on the Ethereum network and later transitioned to the blockchain of the Binance platform, now known as the **BNB Chain**, which combines the Binance chain and the Binance Smart Chain[6][7][8].
**Key features and uses:**
- **Paying trading and transaction fees**: Owners use it to pay trading fees on the Binance platform at a significant discount, and it can also be used to pay transaction fees on the BNB chain.
- **Benefit from additional services**: Such as participating in initial coin offerings on the Binance platform (Binance Launchpad), booking travel, and some online purchases[6][3].
- **Smart contracts and DeFi services**: It acts as fuel for running smart contracts and decentralized finance applications on the BNB smart chain, with high compatibility with the Ethereum development environment[3][6].
- **A central element in the Binance system**: BNB plays a key role as a service currency used for currency conversions, service bookings, and conducting financial transactions within the Binance ecosystem[6][5].
**Burn mechanism and supply reduction:**
The Binance platform periodically "burns" a quantity of BNB coins, meaning they are permanently destroyed from the trading market to reduce the total supply of the currency - which may contribute to increasing its value over time[1][5][6]. The maximum supply at launch was 200 million BNB, which is gradually reduced through this mechanism.
**Its impact and significance:**
- **BNB is classified among the top five cryptocurrencies in the world by market capitalization**, and its popularity and success are linked to the growth of Binance's services and the expansion of its products and partners[5][7].
- Its widespread use in the crypto world and digital services has led many companies to accept it as a means of payment for goods and services[6][8].
**Technical development:**
- The Binance platform developed the BNB chain with a "Proof of Staked Authority" model, ensuring fast transactions at low cost[7].
- The chain is compatible with the Ethereum Virtual Machine (EVM), allowing for easy transfer and development of applications from the Ethereum environment[3][7].
**Summary:**
The **BNB** currency is not just a digital asset for trading, but represents a technical and strategic element in the Binance ecosystem, playing an increasingly important role in the world of decentralized financial applications, crypto development, and electronic payment solutions. Its importance is expected to continue in the future as blockchain technology advances and the Binance ecosystem expands[1][5][6][8].
