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

What is BNB?

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

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

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

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

The history of currency

If you do not talk about the history of theBinance 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 isscattered among various types of participants, including angel investors andthe founding team of Binance.

During the ICO, all 100 million can be soldto 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 usedto upgrade 50%of Binance for platforms and exchange systems Binance's remaining15%of the brand promotion, marketing and new innovators to prepare from time totime. Unusual situation.

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

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

How does Binance Coin work?

BNB is an encrypted asset similar to otherdigital assets in the market because its value increases or decreased withpeople's use and transactions. People can save the tokens in a compatiblewallet outside the encryption exchange and send it directly to others to pay orother 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 -levelblockchain of Binance was merged into BNB (the previous Binance Smart Chain andBinance Chain).

In this newly formed chain, Binance isbased on this newly formed chain Binance Dispels Exchange (DEX) to customizethe blockchain on the chain to obtain the best performance. The BNB chaintransaction is called the BNB blockchain gas token promotion, and the tokensrepresent "Buildandbuild" (previously known as Binancecoin).

The BNB chain consists of the BNB beaconand the BNB smart chain. The former focuses on the BNB chain governance,allowing BNB holders to participate in pledge and voting. The latter is aconsensus 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 aretwo different blockchains in the BNB chain, and each blockchain has its ownfunctions:

BNB benchmark chain: It was previouslycalled the Binance Chain, which handles BNB chain governance, including pledgeand voting proposals.

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

In order to verify the transaction andmanage its network, BNBCHAIN uses a unique consensus mechanism, called proof of equity. This iscombined with the popular rights certificate system and the uncommonpermissions certification system.

There are 41 verifications in the BNBCHAIN system, of which 21 trading blocks areconfirmed. To become a verification person, users first need to invest at least10,000 BNB tokens to become candidates for candidates.

Other BNB holders can be represented by thetoken behind the candidate. The BNB chain was selected for 21 candidates andmade them an authenticator. These verifiedrs also represent their customersvote for decision.

The verifications and their clients will berewarded 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 willrepresent "Buildandbuild". In order to encourage the expansion of thenetwork and applications, they adopted measures to disperse networkverification and invite communities to participate.

BNBCHAIN announced its first "hackermarathon" to provide prizes and seed funds for new applications. It alsostated that it will release a new ecosystem extension function, called theecosystem expansion function BNB application side chain (BAS), allowing developersto build a large application with BNB chain integration, but these applicationsuse their own generations to use their own generations Coins run on their ownblockchain.

BAS can access many resources of theapplication BNCChain, thus simplifying their development. By integrating newapplications on the side chain, it is expected that they will not slow down thespeed of the BNB chain. The purpose of these changes is to make these changesinto the BNB expansion chain, expand, and prepare to welcome the "nextbillion" users. These users will be migrated to blockchain applicationsfor old users Web applications.

BNB burning

Each quarter will cost some income torepurchase and destroy the coins, thereby completely eliminating them. Binancehas been destroying quarterly since 2017.

Currency An will continue to destroy theBNB 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 ofmonetary security and currency and affect its rarity, which may affect thevalue of assets.

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

The use of BNB

Just like other continuous development ofcryptocurrencies, currency security currency provides various purposes beyondthe currency security exchange, such as

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

Trading fee: BNB can be used fortransaction costs of the Bonan Stock Exchange, and users can also getdiscounts.

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

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

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

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

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

Loans and transfer: BNB can be used as amortgage for loans on some platforms. In addition, some applications allowusers to split their bills through Binancecoin and pay to friends and familymembers.

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 theinitial 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 BNBtokens 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 usedfor Binance brand promotion, marketing and innovation education; The situationoccurred.

BNB pricing and dynamics

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

Since the ICO of Binance, the value of BNBhas risen sharply, and sometimes the price of each token is more than $ 600. IsBinance a good investment? If buyers enter and sell at the right time, theirhistorical 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 intoone of the largest participants in the encryption field. However, in 2021, thedifficulty of supervision facing Binance surfaced. In 2021, Binance facedregulatory actions in many regions such as the Cayman Islands, Japan, Malta,the Netherlands, Malaysia, Britain and Thailand.

For example, the British Financial BehaviorRegulatory Commission ordered Binance to stop all business supervisedbusinesses. In June 2021, due to the lack of necessary authorization, theregistration license was registered. Similarly, the Malaysian authorities willfile a criminal lawsuit against Binance as an unauthorized virtual assetservice 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 Americancustomers from its main exchange in 2019, although Binance of Binance.us compatiblewith American users in the same year.

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

Can I use BNB to earn passive income?

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

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

Although the U.S. Binance Exchange does notprovide BNB pledge rewards, other countries Binance users have BNB pledgeoptions.

Is BNB good investment?

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

Although BNB is already one of the largestcryptocurrencies, it is easy to see how it grows. The Binance Exchange hasoccupied the encryption market in the encryption market, and the BNB chainecosystem is very large. all these are. BNB competitive advantage. CompetitiveAdvantage.

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

If you are a binance fan, you may be worthinvesting in BNB. You can earn passive income by pledge, obtain transactionfees discounts, or earn passive income through pledge to obtain transactionexpense discounts Binancelaunchpad token sales.

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