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BNB Revealed: Exploring Its Role and Applications in the BNB Chain Ecosystem

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Key Takeaways

  • BNB serves as both Beacon Chain and Smart Chain of this ecosystem, serving as one key part
  • Decentralised applications offer many advantages, from reduced transaction fees and payments, to participation in decentralized apps and participation.
  • BNB can be found in three forms; BEP-2 on BNB Beacon Chain and BEP-20 on BNB Smart Chain as well as ERC-20 tokens within Ethereum networks.


Introduction to BNB

Build and Build, or BNB in short, is more than a digital coin; it powers Binance's entire BNB Chain ecosystem as both Beacon Chain tokens and Smart Chain tokens, providing discounted trading fees, participation in DeFi applications and everyday purchases on and beyond its platform.


BNB's Origin

Through an Initial Coin Offering (ICO) from June 26th to July 3rd 2017, BNB first made its debut 11 days before trading opened on Binance Exchange. At that time, one ETH could be exchanged for 2,700 BNB or one BTC could be purchased for 20,000 BNB; though please remember that owning BNB does not give holders access to Binance's profits nor represent equity ownership of Binance.


BNB was first released onto the Ethereum network as an ERC-20 token with an initial supply of 200 million coins; half were distributed during its Initial Coin Offering (ICO). Over time, its supply has gradually reduced through regular coin burning events and mechanisms designed to decrease circulation while increasing value among remaining tokens - for more details regarding coin burns' operation and purpose please read our guide: What Is a Coin Burn?


BNB made its transition from Ethereum network to Binance Chain shortly before mainnet launch on April 18th 2019. All ERC-20 BNB tokens were swapped out one for one with BEP-2 BNB tokens in preparation of mainnet launch on April 18th 2019.


Binance has extended their blockchain infrastructure with the launch of BNB Smart Chain (BSC), operating simultaneously to BNB Beacon Chain and BEP-2 (formerly Binance Chain). Through this move, there now exist three versions of BNB: 

  1. BEP-2 runs on Beacon Chain while Smart Chain exists simultaneously with both versions of Beacon.
  2. BNB BEP-20 resides on the BNB Smart Chain (formerly Binance Smart Chain).
  3. BNB ERC-20 works within Ethereum network.


Explore BNB's Many Uses


Binance Newcoin isn't limited to trading applications - its utility extends far beyond Binance! Potential applications could range from mining for hardware as well as everyday uses in everyday life:


  • Reduced Trading Fees on Binance Exchange: Users holding BNB can take advantage of reduced trading fees at Binance, making transactions more cost-efficient.


  • Payment Fees on Binance DEX: BNB can be used to cover trading fees on Binance Decentralized Exchange and facilitate peer-to-peer trading easily and seamlessly.

  • Transaction Fees on BNB Beacon Chain and Smart Chain: Users engaging with these blockchains may use BNB cryptocurrency tokens (BNB) as payment for transaction fees when engaging.

  • Purchase of Goods and Services: Binance New Balance is accepted as payment both online and in store purchases through services like Binance Card or Binance Pay.

  • Booking Travel-Related Services with BNB: Platforms like Travala accept BNB payments as currency when booking hotels, flights and tours with them.

  • Utility Token for DApps: BNB serves as an asset token in the BNB Chain ecosystem for various games and decentralized apps, providing its holders access at reduced costs to these applications.

  • Join Binance Launchpad: BNB holders may use it to invest in new projects by taking part in token sales hosted on Binance Launchpad.

  • Donations: BNB can be given through Binance Charity as donations in support of global philanthropic initiatives.

  • Liquidity Provision on Binance Liquid Swap: Users can provide liquidity on this platform in exchange for rewards by making transactions using BNB on Binance Liquid Swap.


Estimations suggest that millions of BNB has already been spent for various uses such as travel expenses, virtual gift purchases, lending rewards programs and smart contract creation among many others.

BNB and Trading Fee Discounts


One of the most coveted uses for BNB on Binance Exchange is for discounted trading fees; nearly 2 Million users have taken advantage of this feature to pay their fees using 40 Million BNB across over 127 Billion trades! Here's how it works:


Binance charges a standard transaction fee of 0.1% on every cryptocurrency trade you complete on their platform (based on monthly trading volume and holdings of BNB), when trading digital coins through them. There are two methods available to you for paying this fee directly through their site or off it via various methods (ie using cryptocurrency to trade on Bittrex etc).


Pay the Trading Fee with Cryptocurrencies Being Traded: Your trading fee will be deducted directly from assets being bought or sold, while paying with BNB grants you an exclusive discount off this fee.


Active traders who make regular deposits of BNB to cover fees could realize significant savings over time by using them instead of fiat currency like US Dollar, EUR/GBP/USD etc. Discount rates follow a schedule; to stay current it's vitally important that both Spot Trading Fee Schedule as well as Futures Platform Fee Structure are regularly evaluated independently.

BNB Moves Beyond Trading Fees

Binance New Bearer goes well beyond just cutting trading costs - its functionality extends well beyond this goal! In addition to supporting Binance DEX on its BNB Beacon Chain and providing hundreds of applications through BSC, this cryptocurrency also has multiple uses beyond simply powering exchange trading fees on Binance itself - you may use BNB outside its use on Binance too!


Over 180 digital assets have been issued on the BSC, while millions of people have used BNB for utility within this network. From DeFi projects and blockchain games and decentralized apps utilizing this cryptocurrency currency to BNB-enabled games and decentralized apps providing users access to an abundance of innovative platforms and services - users have gained access to many innovative services available via this cryptocurrency network.

Conclusion

BNB stands as an indispensable and versatile component of the BNB Chain ecosystem, from traders looking for reduced fees, investors taking part in token sales or users interacting with decentralized applications - everyone uses BNB. By learning its history, forms and uses you can make informed decisions on how best to utilize this cryptocurrency currency to enhance their cryptocurrency experience.