Close Menu
    You have not selected any currencies to display

    Introduction to BNB

    BNB, short for Build and Build (formerly Binance Coin), is one of the most prominent cryptocurrencies in the world. Originally launched as a utility token for the Binance cryptocurrency exchange, BNB has grown into a vital part of a vast blockchain ecosystem, supporting various use cases ranging from trading fee discounts to powering decentralized applications.

    In this guide, we’ll explore what BNB is, its history, uses, tokenomics, and the role it plays in the broader crypto economy.

    What Is BNB?

    BNB is a cryptocurrency created by Binance, one of the world’s largest cryptocurrency exchanges. Launched in 2017, BNB was initially built on Ethereum as an ERC-20 token. It was later migrated to Binance’s own blockchain — Binance Chain — and eventually became the native token of the BNB Smart Chain (BSC).

    BNB is used to power transactions, participate in decentralized finance (DeFi) apps, pay for trading fees, and more.

    How Bitcoin Works

    Bitcoin operates on a blockchain, which is a decentralized ledger that records all transactions made with the currency. Every time a transaction occurs, it is verified by a network of computers (nodes) and added to a block.

    Here’s how a basic transaction works:

    1. A user initiates a transaction to send Bitcoin to another wallet.

    2. The transaction is broadcast to the network.

    3. Miners validate the transaction by solving complex mathematical problems.

    4. Once validated, the transaction is added to the blockchain.

    5. The recipient receives the Bitcoin.

    The History of BNB

    BNB was launched through an Initial Coin Offering (ICO) in July 2017 to fund the development of the Binance exchange.

    Key milestones:

    • 2017: BNB ICO raised $15 million

    • 2019: Binance Chain and Binance DEX launched

    • 2020: BNB Smart Chain (BSC) launched with smart contract capability

    • 2022: Binance Chain + BSC rebranded as BNB Chain

    BNB's Role in the Binance Ecosystem

    BNB serves as the native token across Binance’s platforms:

    • Binance Exchange: Users get trading fee discounts for paying with BNB

    • Binance Launchpad: Participate in new token sales

    • Binance Card: Use BNB for real-world purchases

    • Binance NFT: Buy and sell NFTs using BNB

    • BNB Chain: Power DeFi apps and decentralized exchanges

    How BNB Works

    BNB operates on two blockchains:

    • BNB Beacon Chain (formerly Binance Chain): Used for governance and staking

    • BNB Smart Chain (BSC): Supports smart contracts and DApps

    Users can stake BNB, provide liquidity, vote on proposals, or use it in DeFi apps

    BNB Use Cases

    BNB is more than just a trading token. It’s used for:

    • Trading fee discounts on Binance

    • Paying for goods and services via Binance Pay

    • Transaction fees on BSC-based applications

    • DeFi staking and yield farming

    • NFT purchases

    • Token sales and initial DEX offerings (IDOs)

    • Travel and entertainment payments through third-party platforms

    Tokenomics: BNB Supply and Burn Mechanism

    BNB started with a maximum supply of 200 million tokens. Binance uses quarterly token burns to reduce the total supply, increasing scarcity.

    Two burn mechanisms:

    • Quarterly Burns: Based on BNB’s usage and revenue

    • Real-Time Auto-Burn: Transparent and automatic supply reduction

    The goal is to eventually burn 100 million BNB, leaving a total supply of 100 million.

    BNB Smart Chain (BSC) and Its Importance

    The BNB Smart Chain (BSC) is a fast, low-cost, and scalable blockchain that supports:

    • Smart contracts

    • DeFi platforms like PancakeSwap

    • DApps and NFTs

    • Cross-chain compatibility via bridges

    Thanks to low transaction fees and high throughput, BSC has become one of the most widely used blockchains in the DeFi space.

    Where to Buy and Store BNB

    Buying BNB

    You can buy BNB on:

    • Binance

    • KuCoin

    • Gate.io

    • Trust Wallet (via DEX)

    • Crypto.com

    Storing BNB

    • Hot Wallets: Trust Wallet, MetaMask

    • Cold Wallets: Ledger, Trezor

    • Binance Wallet: For frequent trading

    Conclusion

    BNB has come a long way from being a simple exchange utility token. Today, it powers a vast blockchain network, supports smart contracts, and plays a major role in the Web3 economy. With continuous innovation and community growth, BNB has positioned itself as one of the most influential cryptocurrencies in the market.

    Whether you’re a trader, investor, or blockchain developer, understanding BNB is essential to navigating the Binance ecosystem and the broader crypto landscape.

    bitxjournal.com

    info@bitxjournal.com

    Bitxjournal Copyright © 2025, All rights reserved

    News
    Rates
    Buy
    About Crypto
    More