Binance Coin (BNB) Overview By Crypto Library

 

Binance is one of the leading cryptocurrency exchanges in the world, providing traders with access to a wide selection of tokens and coins against multiple fiat and cryptocurrency pairings. It was first launched in 2017 with the aim of becoming the best crypto exchange in the industry. Over the years, Binance has become a large and growing ecosystem of blockchain protocols and trading products, and the platform provides some of the most exclusive tools for crypto enthusiasts and traders. One of the examples of this is the Binance coin or BNB Binance token.

BNB crypto is a token authorized by the Binance exchange that allows crypto holders to pay fees on Binance at discounted rates. In July 2017, the Binance coin release date, BNB began its journey of becoming the world’s largest crypto exchange desk in terms of the pure trading volume. By April 2018, Binance achieved this monumental feat. BNB token is many things wrapped into one – a development protocol for issuing tokens and building decentralized applications (dApps), a utility token used for trading cryptocurrencies, and a rewards coin that incentivizes spending and holding.

Therefore, if you are a market player considering investing in BNB tokens, or just an enthusiast who wants to learn more about this versatile asset, it is crucial to understand every aspect of Binance coin.

What is Binance Coin (BNB) ?

As noted earlier, BNB can do many things. In essence, it is a token used on the Binance platform. However, because its value fluctuates since it is traded on the open market, it behaves like any traditionally currency, such as the US dollar or Bitcoin. Although it’s fair market value leaves something to be desired, BNB tokens have the potential to be very valuable. Since its launch, the value of the token has continued to increase. This is the reason why industry players and marketers are so hopeful about it.

BNB is an altcoin (a cryptocurrency other than Bitcoin). When BNB Binance was first developed, it was based on the ERC20 standard, utilizing the Ethereum ETH blockchain and network. This simply means that the token follows the same rules and protocols set down by the Ethereum community.

More importantly, however, it allows the token to leverage the safety and stability of the Ethereum ETH network and blockchain for its own use. In other words, you don’t have to worry about your BNB tokens being stolen, or being put under undue governmental scrutiny since it is protected by the security and credibility of the Ethereum network.

In April 2019 all of this changed when BNB Binance was moved to its own mainnet (a blockchain that transfers a digital currency from a sender to a recipient). When this happened, Binance burned down 5 million ERC20 BNB coins and allocated a corresponding amount of native Binance coins to its own wallets. These native tokens were called BEP-2 tokens.

During that time, Binance also encouraged investors and ERC20 BNB token holders to convert to BEP-2 tokens using the BNB currency converter. Nevertheless, the final result of Binance’s actions are unclear as Binance is still supporting ERC20 tokens. And if users want, they can convert to BEP-2 tokens any time. However, Binance has made sure that no one can withdraw the ERC20 tokens anymore.



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