Binance Coin (BNB) — the future of Binance ecosystem
Binance exchange and Binance Coin (BNB)
Binance is the first cryptocurrency exchange on the world by daily trading volume and Binance BNB is one of the most popular tokens in the crypto space. Binance remains one of the most trustworthy crypto exchanges, with over 150 coins listed and nearly $1.5 billion in crypto traded daily.
Binance opens branches in different jurisdictions and has more users than the population of its headquarters country - Honk Kong, approximately 10 million. Changpeng “CZ” Zhao, its CEO, was recently featured on the cover of Forbes as one of the richest people in crypto, with an estimated net worth over $1 billion.
Just getting listed on Binance can provide a cryptocurrency with a temporary boost of 80% in market value. And being delisted from Binance is a black mark felt throughout the industry.
Binance ecosystem is based on BNB token that is also used within its exchange. In addition, it developed own blockchain (Binance Chain), incubator (Binance Labs), ICO platform (Binance Launchpad), charity arm (Binance Blockchain Charity Foundation), and crypto tracker (Binance Info). Binance recently invested in a decentralized banking concept and is actively seeking to disrupt multiple spaces within the financial sector.
Binance Coin (BNB) role on the crypto market
BNB used to be a ERC-20 token of the Binance exchange with a total supply of 192,443,301.
The Binance ICO was running out from 14 till 27 of July, 2017, at which time 100 million BNB were sold, raising approximately $15 million. Nearly 5 million have been repurchased and burned by Binance. It plans to destroy the initial 100 million ICO tokens using 20% of quarterly profits four times a year to do so. You can find BNB burn plan here.
On Binance, the volume of BNB to BTC and USD is truly impressive. Back in November 2018, BNB was the 14th ranked altcoin, today in April 2019 it is ranked 7th. Binance Сoin raised up 5 times from November and 2,5 times from March.
Obviously, the biggest use case for the BNB coin is a paying trading fee within the Binance exchange. The discount for using the BNB tokens to pay transaction fees started at 50% for the first year, and it’s currently at 25%. Next year it will drop to 12.5%, then 6.75% in year four. Then the discount for using BNB coin to pay transaction fees disappears.
BNB benefits and use cases
Binance always forming new partnerships and arrangements that will further enhance the use of BNB. Here is the sup up of all the currently available BNB use cases, in addition to the trading fee payment with discounts:
- Using on blockchains integrated with Binance Coins: at the moment, BNB has ecosystem integrations with the blockchains of Qlink and Skycoin.
- Spending on goods and services across many establishments: Binance have enabled various ways to use BNB to purchase goods and services over an increasing network of merchants and establishments;
- Securing money in times of need: over the past year, Binance Coins were used for withdrawing cash on crypto ATMs via Zelaacoin, as well as securing loans through Nexo and selling crypto for cash through Dether;
- Having fun with Binance Coins on social media services: social media has become a major part of the lives for a lot of people in the world, so Binance welcomed the use of BNB for various functions on innovative platforms;
- Earning a salary: about 9 in 10 Binance employees receive a portion of their salaries in BNB;
- Storing on various wallets: a lot of major crypto wallet makers have made it sure to integrate BNB in their wallets. Binance Coin can also be stored in wallets such as Trezor, Eidoo, Enjin, Jaxx, Ledger, Metal Vault, Blox, and Request Wallet;
- Trading as an altcoin: right now, Binance Coin is trading in around 12 traditional exchanges and several instant exchanges, like Changehero.io, where BNB is available for purchase with the credit card via partners and crypto-to-crypto exchange:
You can check all the services to use BNB here.
BNB Mainnet and how it differs from BNB ERC-20
Binance Coin or BNB coin used to be ERC20 token based on Ethereum blockchain and since 23rd April 2019 BNB migrated to Binance Chain and become the new blockchain’s native asset. The improved version of Binance Coin (BNB) is expected to represent the motherboard that serves the entire Binance blockchain and serve as the foundation for Binance’s DEX (first of all, for decentralized BNB change to other tokens based on Binance Chain).
Binance Chain is supposed to do a much better job (speed, transaction fees, etc) than Ethereum. Binance team expects all of the regulated token offerings and ICOs moving forward to take place on Binance Chain as it simply provides a much better platform for these use cases.
How to SWAP BNB?
BNB could be swapped three different ways:
- Users, who store BNB on Binance, don’t need to do anything — Binance handled everything for them and coins are already swapped automatically;
- BNB holders, who keep BNB ERC-20 in a cryptocurrency wallet, will eventually have to deposit it to Binance to perform the token conversion within 90 days;
- Another option is to swap BNB on instant exchanges like Changehero.io. It provides convenient SWAP service 1:1 and with 0% fee. Will be launched soon.
Binance and BNB: from exchange to the community
Binance has gone a long way in the past few months. The exchange has been good at observing the crypto space and planning its own evolution accordingly. Binance has cemented itself in the crypto world like no other exchange so far.
The exchange plans to have at least two fiat-to-crypto exchanges on each continent. In the meantime, Binance continued working on its blockchain, Binance Chain, as well as on its decentralized version, Binance DEX, making the next step on towards crypto market decentralization.
All of these moves are only small parts of the bigger picture, however. The final goal is the transformation of Binance from a simple exchange to an entire community, where all of its subsidiaries and projects would be connected into a single, massive, Binance network. Of course, at the heart of it all sits the newly-launched Binance Chain, as well as its native token, Binance Coin.
