BNB

What is BNB?

BNB (originally Binance Coin) is the native cryptocurrency of the BNB Chain ecosystem, created by the Binance cryptocurrency exchange. Initially launched in 2017 as an ERC-20 token on Ethereum, it has since migrated to its own blockchain and powers one of the largest smart contract platforms in the world.

How BNB Works

BNB operates on two main chains: BNB Beacon Chain (for governance and staking) and BNB Smart Chain (for smart contracts). The network uses a Proof of Staked Authority (PoSA) consensus mechanism, combining elements of Proof of Stake and Proof of Authority for fast and cheap transactions.

Key Features

• Fast Transactions: 3-second block time with low fees
• EVM Compatible: Supports Ethereum smart contracts
• Token Burning: Quarterly burns reduce supply
• Exchange Utility: Fee discounts on Binance
• Cross-Chain: Bridges to multiple blockchains

Tokenomics

• Initial Supply: 200,000,000 BNB
• Target Supply: 100,000,000 BNB (after burns)
• Block Time: ~3 seconds
• Quarterly Burns: Based on trading volume
• Consensus: Proof of Staked Authority (PoSA)

Use Cases

• Trading fee discounts on Binance
• Gas fees on BNB Smart Chain
• DeFi and yield farming
• NFT marketplace transactions
• Token launches and IEOs

Ecosystem

BNB Smart Chain hosts a vibrant ecosystem of DeFi protocols, NFT marketplaces, and GameFi projects. Its low fees and fast transactions have made it particularly popular for high-frequency DeFi activities and gaming applications.