What is BNB? The Cryptocurrency Of Binance Explained


What is BNB? Binance, which began operations in July 2017, is the largest cryptocurrency exchange in the world in terms of daily trading volume. It is the mission of Binance to elevate cryptocurrency exchanges to the forefront of global financial activity. The concept behind Binance’s name is to demonstrate a new paradigm in global finance Binary Finance, or Binance by using a cryptocurrency.

The Binance Network And BNB

Beyond being the biggest cryptocurrency exchange in the world, Binance has developed a comprehensive set of features for its customers, including an entire ecosystem of services. The Binance network consists of many initiatives, including the Binance Chain, the Binance Smart Chain, the Binance Academy, the Trust Wallet, and the Binance Research projects, all of which make use of blockchain technology to deliver new-age money to the globe. The effective operation of many of the Binance sub-projects is dependent on the proper operation of Binance Coin.

Who Founded the BNB Coin?

Changpeng Zhao is the founder and CEO of the cryptocurrency exchange Binance. Zhao began his career at Bloomberg in 2001 as the head of tradebook futures development. He worked for the firm for four years before moving on to become a partner at Fusion Systems.

For the last three years, Changpeng Zhao has been actively engaged in the development of blockchain technology and cryptocurrencies. He went on to become the chief of development at Blockchain, and in 2015, he launched his own company, BijieTech. Zhao formally created Binance in 2017, and he has served as the company’s chief executive officer ever since.

BNB Coin From Binance
Credits: Binance

He Yi is a co-founder of Binance and the company’s chief marketing officer. In 2012, she began her professional television career as an anchor and presenter on China Travel TV. The next year, in 2014, Yi co-founded OKCoin, which was at that time China’s biggest fiat-to-crypto exchange by volume. Her partnership with Changpeng Zhao resulted in Binance being the world’s biggest cryptocurrency exchange in 2017, according to the company’s website.

What Is It About Binance Coin That Is So Special?
Binance is a decentralized, blockchain-based network ecosystem that is unlike any other. A number of nations have ranked the corporation as the largest cryptocurrency exchange, and its side organizations are generating substantial attention as well.

Binance Keeps Growing

Binance’s commitment to continuous improvement is one of its most significant competitive advantages. While the firm began as a cryptocurrency exchange in 2017, it has now expanded its services to include a wide range of other industries and verticals. According to the company’s website, the company’s mission is to become the infrastructure services provider for the entire blockchain ecosystem, which includes public blockchains.

Because of growing investor interest in the Binance Coin since its introduction, the exchange has also benefitted from the cryptocurrency. BNB had a large price boost at the start of 2021, putting the company on the radar of corporate investors for the first time.

What is the total number of Binance Coin (BNB) coins in circulation?

There is a total initial supply of 200,000,000 BNB coins, of which 168,137,036 are presently in circulation as of September 2021. There is a maximum original supply of 200,000,000 BNB coins.

Binance burns its Binance Coin supply on a quarterly basis with the objective of lowering the entire supply by half — or 100,000,000 BNB — by the end of the year. On July 18, 2021, it executed its 16th quarterly burning, which was valued at $390 million at the time of burning based on the price of Binance Coin at the time of burning. Although it was the most costly burn, it wasn’t the most expensive: on April 16, 2021, the exchange burnt approximately $600 million worth of Binance Coin, which was the price of the cryptocurrency at the time of burning.

Binance and BNB WhitePaper

According to the Binance whitepaper, precisely half of the total number of BNB tokens was reserved for use in the initial coin offering (ICO) and subsequent public sale of the cryptocurrency exchange’s cryptocurrency. The initial coin offering (ICO) took place in July 2017, soon after the exchange’s inception, and saw Binance receive $15 million in fundraising.

The price of Binance Coin was $0.10 at the time of the ICO. Based on the current value of the Binance Coin, this offers an almost 4200X return on investment (ROI). In addition, around 80,000,000 BNB coins, or approximately 40% of the entire supply, were dispersed to the founding members and staff. Last but not least, the remaining ten percent of the maximum supply was distributed to angel investors in an auction.

What is the security of the Binance Coin Network?

Initially, the Binance currency was created as a standard ERC-20 token on the Ethereum network, which was then rebranded as BNB. As time progressed, the firm developed its own blockchain, and the currencies began to be issued from the Binance blockchain, which was protected using the Tendermint byzantine fault tolerance consensus process (also known as BFT).

ERC-20 tokens vs ERC-721 tokens

While ERC-20 tokens depend on the proof-of-stake (PoS) consensus, which enables them to be incredibly scalable and allows for the formation of smart contracts, ERC-721 tokens rely on the proof-of-work (PoW) consensus, which allows for the creation of smart contracts. Smart contract functionality is not supported on the Binance blockchain, in contrast to the Proof of Stake (PoS) network. As opposed to this, the Bitcoin blockchain is protected by the proof of work consensus (PoW), which is significantly more restricted and requires a significant amount of electrical and computational resources to maintain its integrity.

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