Today we will consider an extremely interesting digital asset, which officially appeared on the market in April 2019 as a separate blockchain. We will talk about Binance Coin: consider what it is; what are utilitarian tokens in general; What benefits does BNB offer investors? and finally, can BNB be considered a good investment or not.

Let's get down to looking at utilitarian tokens and their definitions to see how both relate to BNB.

What are utility tokens
For those who are not familiar with this term, we will quickly discuss what it is. A token is a digital asset placed on the basis of the blockchain. For example, the most popular Dapp platform, Ethereum, has many different tokens offered throughout the market. Each of these tokens is based on the Ethereum blockchain. This means that they do not have their own blockchain and, to confirm transactions, store information, and provide services of their applications to users around the world, they use the Ethereum network. Such tokens also have their own classification.

In order to be called a utilitarian token, an asset must comply with a number of rules, such as:

• Have a limited supply of coins;
• Have a specific function;
• Bring profit to the owner.

Now that we’ve figured out what a utility token is, we can begin to deal with Binance Coin so that you can determine how it meets these requirements.

What is Binance Coin?
Binance Coin, or BNB for short, is a cryptocurrency representing the top cryptocurrency exchange, Binance.com. Initially, during the ICO project, it was launched on the Ethereum blockchain as an ERC-20 token, and in April 2019 acquired its own blockchain.

Let's see how holders can use this cryptocurrency in the Binance ecosystem.

There are 4 ways to profit from BNB

The best use of BNB is to receive a discount on the trading commission on the Binance exchange. This is a very important use case and it is great for any trader on the market. In total, a BNB holder who trades on the Binance exchange may in some cases reduce the commission by 75%.
Primary exchange offerings are the second most important advantage that BNB provides. Binance launched its Launchpad for new startups in the crypto industry in early 2019. Instead of traditional ICOs, in which investors must conduct all the necessary research themselves and determine whether projects can be trusted, Binance did all this for you, providing only the best projects for Launchpad users. The main thing is that all investments are made in BNB, and only holders with a certain number of BNB coins are allowed to invest in the lottery system.
The third feature of BNB that we will mention is the company’s redemption of part of the coins. Binance makes such buybacks every quarter. The following happens: the exchange receives a certain amount of profit, 20% of which the company spends on the purchase of BNB coins from holders to burn. This reduces the total supply of currency over time and, in accordance with the laws of supply and demand, raises the price of a token. In total, the company plans to redeem 50% of the entire offer, which is approximately 100 million coins.
The last way to use it is that the exchange user community votes for the listing of new coins: BNB holders can vote for the coins that will be added to the platform as follows. This caused a lot of controversy regarding fraud, but the vote itself makes the coin even more utilitarian.

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Binance chain
In addition, BNB is hosted on its own blockchain - Binance Chain (BEP2). The main goal of this network is to be a source for the issuance and exchange of decentralized assets in a decentralized way. Binance Chain uses the Tendermint BFT algorithm and has an application layer. In addition, the network has 3 types of nodes:

Validators: They are responsible for maintaining the network, data security, and transaction validation. The commission is collected and distributed between nodes of this type.
Witnesses: They are responsible for receiving transactions and their transmission to the network. This type does not validate.
Expedited: Provides access to a safer and faster network entry point, if necessary.

Unfortunately, the Binance Chain does not provide development of smart contracts, so developers will have to turn to other networks, such as Ethereum or EOS, to design on them.

Dust application
Another way to use BNB tokens, except for getting discounts, is to convert your dust, feature which was added to the exchange. If you have ever traded on Binance, then you know that over time, the balance of various currencies accumulates on your wallet, parts of which are sometimes so small that it is impossible to sell. This is especially true for active traders. Binance solved this problem by allowing them to turn this dust into BNB tokens through a simple backend conversion.

BNB has a lot of market applications on the exchange itself and its partners, for example, lending, buying, sending.

Is BNB a good purchase?
The main question is this: Is BNB a good buy? Well, if you consider this coin from a purely utilitarian point of view, take into account the laws of supply and demand, believe that Binance will remain in the top among traders, then the answer is yes!

If you just look at the fundamental indicators and think about what is a good buy on the cryptocurrency market, then most likely you will call BNB as such. Binance does its best to ensure that BNB is a fully functional utilitarian asset and to ensure its long-term success. The main obstacles to this can only be the government and the powers that be, trying to shut down the crypto-economics, starting with the largest exchanges, including Binance.

Given that the crypto industry continues to evolve and the world has not turned its back on Binance, this should not happen in the future. Over the next 10 years, we will probably see a huge rise in both the exchange and the token. Obviously, you need to take a closer look at this asset.BNB is a great addition to the crypto industry, which shows what a utilitarian token should be like.