What kind of cryptocurrency is BNB? Friends who are concerned about the cryptocurrency market should know the Binance Exchange, and this currency is the cryptocurrency issued by this exchange. Let ’s take a look at what kind of currency BNB is. It is worth investing now?

What is BNB?

Established in July 2017, Binancoin was initially used to work on the Ethereum blockchain, and it became its own local currency of the blockchain currency security chain.

BNB provides motivation for cryptocurrencies for the BNB chain ecosystem. As one of the most popular practical tokens in the world, you can not only trade BNB like trading any other cryptocurrencies, but also widely apply and use case BNB.

The Binance Exchange's Binance (BNB) is an encrypted exchange asset. What is coin? BNB was originally a way for the first token (ICO) issued by Binance (ICO), and the assets sold by China became a way for currency security exchange users to pay less trading fees on the platform.

Since then, BNB has been playing a role in Binance in a continuous development ecosystem, because Binance is not just a digital asset exchange.

The history of currency

If you do not talk about the history of the Binance Exchange, it will be difficult to tell the origin story of Binance. Binancecoin was launched in July 2017. As part of the ICO, the BNB token is scattered among various types of participants, including angel investors and the founding team of Binance.

During the ICO, all 100 million can be sold to token at a price of 15 cents. Binance raised a total of $ 15 million (BTC) and Ethereum (ETH) through the ICO Bitcoin.

Among the $ 15 million raised, 35%were used to upgrade 50%of Binance for platforms and exchange systems Binance's remaining 15%of the brand promotion, marketing and new innovators to prepare from time to time. Unusual situation.

In its ICO and early, BNB was built on ERC-20 token on the Ethereum blockchain. In the middle of 2017, the ICO's cryptocurrency trading platform was open within a few days after the end.

In 2019, Binance launched its own native blockchain, called the Binance Chain (BC). BC brings blockchain itself BNB tokens. In 2019, the user received the new BNB in exchange for their BNBERC-20s to the BNBERC-20 token.

How does Binance Coin work?

BNB is an encrypted asset similar to other digital assets in the market because its value increases or decreased with people's use and transactions. People can save the tokens in a compatible wallet outside the encryption exchange and send it directly to others to pay or other methods.

Maybe people want to know how to buy coins? People can buy BNB in various ways, such as Binance's own cryptocurrency exchanges. However, as usual, be sure to study and abide by any applicable jurisdiction.

At the technical level, the first -level blockchain of Binance was merged into BNB (the previous Binance Smart Chain and Binance Chain).

In this newly formed chain, Binance is based on this newly formed chain Binance Dispels Exchange (DEX) to customize the blockchain on the chain to obtain the best performance. The BNB chain transaction is called the BNB blockchain gas token promotion, and the tokens represent "Buildandbuild" (previously known as Binancecoin).

The BNB chain consists of the BNB beacon and the BNB smart chain. The former focuses on the BNB chain governance, allowing BNB holders to participate in pledge and voting. The latter is a consensus layer compatible with the Ethereum virtual machine with a multi -chain set.

BNB's working principle

BNB is the fuel of the BNB chain. There are two different blockchains in the BNB chain, and each blockchain has its own functions:

BNB benchmark chain: It was previously called the Binance Chain, which handles BNB chain governance, including pledge and voting proposals.

BNB Smart Chain: Previous is the Binance Smart Chain. It is a smart contract platform compatible with Ethereum.

In order to verify the transaction and manage its network, BNBCHAIN uses a unique consensus mechanism, called proof of equity. This is combined with the popular rights certificate system and the uncommon permissions certification system.

There are 41 verifications in the BNBCHAIN system, of which 21 trading blocks are confirmed. To become a verification person, users first need to invest at least 10,000 BNB tokens to become candidates for candidates.

Other BNB holders can be represented by the token behind the candidate. The BNB chain was selected for 21 candidates and made them an authenticator. These verifiedrs also represent their customers vote for decision.

The verifications and their clients will be rewarded for each transaction block they verify. Reward comes from rewards. BNBChain pays transaction fees.

In an important announcement in February 2022, Binance stated that BNB will be "not just Binance." BNB will represent "Buildandbuild". In order to encourage the expansion of the network and applications, they adopted measures to disperse network verification and invite communities to participate.

BNBCHAIN announced its first "hacker marathon" to provide prizes and seed funds for new applications. It also stated that it will release a new ecosystem extension function, called the ecosystem expansion function BNB application side chain (BAS), allowing developers to build a large application with BNB chain integration, but these applications use their own generations to use their own generations Coins run on their own blockchain.

BAS can access many resources of the application BNCChain, thus simplifying their development. By integrating new applications on the side chain, it is expected that they will not slow down the speed of the BNB chain. The purpose of these changes is to make these changes into the BNB expansion chain, expand, and prepare to welcome the "next billion" users. These users will be migrated to blockchain applications for old users Web applications.

BNB burning

Each quarter will cost some income to repurchase and destroy the coins, thereby completely eliminating them. Binance has been destroying quarterly since 2017.

Currency An will continue to destroy the BNB tokens every quarter until it purchase and destroy $ 100 million in tokens, or half of its original maximum supply. This process will reduce the supply of monetary security and currency and affect its rarity, which may affect the value of assets.

There is also a BNBPIONEERBURNPROGRAM evaluation project BNB holder that can not be recovered, and the amount of BNB is also repaid from the next time the amount of BNB destruction.

The use of BNB

Just like other continuous development of cryptocurrencies, currency security currency provides various purposes beyond the currency security exchange, such as

Trading: According to the restrictions set on the exchange, currency security coins can be traded in various exchanges to trade other cryptocurrencies.

Trading fee: BNB can be used for transaction costs of the Bonan Stock Exchange, and users can also get discounts.

Credit card payment: BNB can be a payment method for crypto.com encrypted credit card bills.

Payment processing: Merchants can provide customers with greater flexibility as a payment method.

Booking travel arrangements: BNB can be used to book hotels and flights on specific websites.

Entertainment: From paying virtual gifts to buying lottery tickets, there are many uses in the field of BNB Entertainment.

Investment: Multiple platforms allow investors to use currency to invest in stocks, and ETFs have other assets.

Loans and transfer: BNB can be used as a mortgage for loans on some platforms. In addition, some applications allow users to split their bills through Binancecoin and pay to friends and family members.

Binancecoin: Issuing initial tokens

In July 2017, it was launched in July 2017. As part of the ICO, the BNB tokens are distributed to various participants, including angel investors and the founding team of Binance.

The following is a brief explanation of the initial distribution method of the BNB:

Founding team: 40%(80 million) BNB)

Angel investor: 10%(20 million) BNB)

Public release: 50%(100 million) BNB)

During this period, all the 100 million BNB tokens available for public sales were sold at a price of 15 cents. Therefore, Binance raised $ 15 million in Bitcoin and Ethereum.

Among the 15 million US dollars raised, 35%were used to upgrade the Binance platform and exchange system; 50%were used for Binance brand promotion, marketing and innovation education; The situation occurred.

BNB pricing and dynamics

In general, the price of BNB history has always fluctuated in a way similar to other crypto asset transactions in the market. Binancecoin's market value has been increasing for many years, with a valuation of more than $ 70 billion. In Binance. During the ICO period, the price of each token of BNB is about $ 0.10.

Since the ICO of Binance, the value of BNB has risen sharply, and sometimes the price of each token is more than $ 600. Is Binance a good investment? If buyers enter and sell at the right time, their historical prices may generate profits. Although looking forward to the future, only the future can reveal where the price of BNB will go.

Binance and Supervision

After operation in 2017, Binance grew into one of the largest participants in the encryption field. However, in 2021, the difficulty of supervision facing Binance surfaced. In 2021, Binance faced regulatory actions in many regions such as the Cayman Islands, Japan, Malta, the Netherlands, Malaysia, Britain and Thailand.

For example, the British Financial Behavior Regulatory Commission ordered Binance to stop all business supervised businesses. In June 2021, due to the lack of necessary authorization, the registration license was registered. Similarly, the Malaysian authorities will file a criminal lawsuit against Binance as an unauthorized virtual asset service provider (VASP) operator (VASP) next month.

Is Binance prohibited in the United States? Prior to the wind in 2021, Binance announced that it would delete American customers from its main exchange in 2019, although Binance of Binance.us compatible with American users in the same year.

In order to cope with the increasingly stringent regulatory review, Qian An said that plans to set up more offices around the world and seek licenses in various jurisdictions of its management. Qian An is also strengthening its compliance capabilities and resources, and gradually eliminating or restricting some high -risk projects.

Can I use BNB to earn passive income?

You can use BNB to earn passive income BNB chains to use cryptocurrency pledge to verify transactions and governance, so you can pledge your currency BNB reward tokens.

Most people perform this operation with supporting BNB pledged encrypted wallets. One choice is. Trustwallet, which is owned by Binance and can be easily purchased and pledged BNB.

Although the U.S. Binance Exchange does not provide BNB pledge rewards, other countries Binance users have BNB pledge options.

Is BNB good investment?

BNB is definitely a high -risk, high return investment. Investors' attention to it usually depends on their views on its focus on the Binance Exchange and the BNB chain.

Although BNB is already one of the largest cryptocurrencies, it is easy to see how it grows. The Binance Exchange has occupied the encryption market in the encryption market, and the BNB chain ecosystem is very large. all these are. BNB competitive advantage. Competitive Advantage.

Instead, currency security and BNB chains may also lose some market share. High -quality cryptocurrency exchanges are more than ever, and may weaken the Binance user base, especially when facing more regulatory issues. The BNB chain is facing similar problems because it must compete with a lot of smart contract blockchain.

If you are a binance fan, you may be worth investing in BNB. You can earn passive income by pledge, obtain transaction fees discounts, or earn passive income through pledge to obtain transaction expense discounts Binancelaunchpad token sales.

The above content introduces what cryptocurrency is BNB. It is worth investing in BNB and whether it can bring us benefits. From the perspective of Binance's strength and operation, Binance is still worth investing. Of course, you must make judgments based on your ability to bear risk. Don't blindly invest in the trend, otherwise it is easy to lose money.