We introduce Binance Coin (BNB), Binance Chain and Binance Smart Chain.
Binance Coin (BNB) is the official cryptocurrency of the Binance crypto exchange.
When it was launched in April 2019, Binance Coin was nothing more than a humble Ethereum based ERC-20 token designed to reward holders with discounted trading fees.
However, Binance Coin has now become the native coin of both the Binance Chain and Binance Smart Chain.
With a hard cap of 200 million tokens and smart contract capabilities via the Binance Smart Chain, this continued evolution of Binance Coin and its associated blockchains is extremely exciting.
This Binance Coin guide will not only cover BNB, but also Binance Chain and the highly anticipated Binance Smart Chain.
Let’s dive straight into some introductions.
Binance Coin (BNB)
Binance Coin (BNB) was first launched in 2017 as a utility token for rewarding Binance exchange clients with discounted trading fees.
Since then however, the token’s use cases have expanded exponentially to other applications, platforms and even entire blockchains.
Not only can BNB be used to pay transaction fees on Binance exchange, but can now be used on other exchanges (both centralised and decentralised), to book travel accommodation, pay for goods and services at a plethora of eCommerce locations and the jewell in the use-case crown:
Financial services within the decentralised finance (Defi) realm using platforms built on top of the Binance Smart Chain network.
Binance Chain
The Binance Chain is a blockchain software system developed by Binance and its community.
BInance Chain is designed to be a public blockchain with a focus on the transfer and trading of blockchain assets, while at the same time providing new opportunities for the future flow of blockchain assets.
Binance Chain supports the BEP-2 token standard, designed to offer users a rapid trading experience, focusing on performance, ease-of-use, and liquidity.
In this way, rapid trading can be enjoyed on Binance Chain, while powerful decentralised apps can be built on BSC.
Binance Smart Chain
The Binance Smart Chain (BSC) on the other hand, functions as a parallel blockchain to the Binance Chain.
But unlike its older brother, Binance Smart Chain offers smart contract functionality and even compatibility with the Ethereum Virtual Machine.
Binance Smart Chain supports the BEP-20 token standard, using the same functions as its Ethereum counterpart, the ERC-20 token.
That’s right, it’s a fully-fledged environment for developing performance-oriented decentralised applications.
BSC is its entirely own blockchain built for cross-chain compatibility with Binance Chain, ensuring that BNB holders receive all the advantages that both chains have to offer.
After the BSC mainnet went live on September 1 2020, BSC has seen a huge explosion in popularity, led by applications in the Defi space, taking advantage of the network’s relatively cheap fees when compared to Ethereum.
Direct from the desk of Dane Williams.
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