BNB (originally known as Binance Coin, and later rebranded to "Build and Build") is a cryptocurrency that plays a central role in the BNB Chain ecosystem, developed with the support of the cryptocurrency exchange Binance.
Here's a historical overview of BNB Coin:
1. Launch and Initial Purpose (2017):
* BNB was launched in July 2017 through an Initial Coin Offering (ICO) by Changpeng Zhao (CZ) and co-founder He Yi, who also founded the Binance cryptocurrency exchange.
* Initially, BNB was an ERC-20 token on the Ethereum blockchain.
* Its primary purpose was to serve as a utility token within the Binance exchange, offering users discounted trading fees. This incentive helped drive early adoption and growth of the exchange.
2. Migration to Binance Chain (2019):
* In 2019, BNB migrated from the Ethereum blockchain to its own native blockchain, the Binance Chain (now known as BNB Beacon Chain). This move aimed to give Binance greater control over its ecosystem and improve transaction speeds and costs.
3. Introduction of Binance Smart Chain (2020):
* In September 2020, Binance launched the Binance Smart Chain (BSC), a parallel blockchain to Binance Chain that supported smart contracts and decentralized applications (dApps). This significantly expanded the utility of BNB, as it became the "gas" token for transactions and smart contract execution on BSC, similar to how Ether functions on Ethereum.
4. Rebranding to BNB Chain (2022):
* In February 2022, Binance Smart Chain and Binance Chain were unified under the umbrella term "BNB Chain," and Binance Coin was rebranded to "Build and Build" (BNB). This rebranding emphasized the broader ecosystem and its community-driven development beyond just the Binance exchange. The BNB Chain now consists of several interconnected blockchains, including:
* BNB Beacon Chain: Handles governance, staking, and voting.
* BNB Smart Chain: Focuses on smart contract creation and execution.
* opBNB and zkBNB: Layer-2 solutions for faster transactions and lower fees.
* BNB Greenfield: A decentralized storage solution.
5. Continued Development and Use Cases:
* Beyond discounted trading fees, BNB's use cases have expanded significantly over time. It can now be used for:
* Paying transaction fees on BNB Chain.
* Staking to secure the network and earn rewards.
* Participating in Initial Coin Offerings (ICOs) and token sales on Binance Launchpad.
* Payments for goods and services with various merchants (e.g., travel bookings, online services).
* Financial services like loans and investments.
* Governance, allowing holders to vote on proposals for the BNB Chain's future.
6. Deflationary Mechanism (BNB Burns):
* Binance periodically conducts "BNB burns," permanently removing a portion of BNB from circulation. This deflationary mechanism aims to reduce the total supply of BNB (capped at 200 million) and potentially increase its value over time.
