BNB, originally known as Binance Coin, is a cryptocurrency that serves as the native utility token of the BNB Chain ecosystem. It was launched to facilitate payments for transaction fees on the Binance exchange, providing users with discounts. The coin supports a broad array of uses within the Binance ecosystem, and its responsibilities have expanded into the larger BNB Chain.
BNB operates within the BNB Chain ecosystem, which includes various blockchain platforms such as BNB Smart Chain (BSC), opBNB, and BNB Greenfield. BNB Smart Chain employs a Proof of Staked Authority (PoSA) consensus mechanism, which is an eco-friendly blend of Proof of Work (PoW) and Proof of Stake (PoS). This system supports the deployment of Ethereum-compatible smart contracts and allows for fast transaction times. Validators in the network, selected based on the amount of BNB they stake, participate in a governance system that allows them to propose and vote on decisions affecting the chain.
BNB's use cases are diverse, involving several sectors and industries:
BNB was launched in 2017 by Changpeng Zhao, amidst the creation of the Binance exchange. Since its inception, it has achieved several milestones, such as the introduction of the Binance Smart Chain, the processing of over $100 trillion in trades, and navigating various regulatory challenges. Technical advancements include notable hard forks like Tycho and Erdos, as well as network upgrades to improve functionality and reduce fees. Despite regulatory challenges, BNB has maintained its position as a major cryptocurrency by market capitalisation, demonstrating strong trading volumes and investor interest.