... written by Etienne Okeke.
Binance coin (BNB) is a crypto token, an ERC20 standard, which is primarily Launched for the Binance project — one of the world’s largest cryptocurrency exchanges. The Binance exchange is a platform that has been consistently associated with high trading volume and also it is known for its security. Since its founding, its daily trading volume has been consistently grown consistently and currently, and it maintains a top position in spot trading with 752 markets capitalized at $6 billion USD, as at today 13th September, 2020.
ERC20 Token Standard
Let’s take some time to unpark what is crypto token and ERCs. Tokens are not native coins on a Blockchain rather they are minted inside a blockchain protocol for specific use or for projects. Our economy has different supply of money (M0, M1, M2), so does Blockchain allow us to have different money supply. The Blockchain native coin is referred to as M0 while token can be M1, M2 etc. Tokens are seen as some form of digital representation of a project so owing some tokens of a project means being a shareholder.
To keep the way Tokens are minted and issued unified, Vitalik Buterin (The creator of Ethereum blockchain) proposed a standard known as ERC20, Ethereum Request for Comments.
In 2017, BNB was first issued on the Ethereum blockchain and launched during an Initial Coin Offering (ICO) crowdfunding event with a total supply capped at 200 million coins, 100 million of BNB was offered for sales during the ICO. The Binance ICO raised 15 million USD and the token has since been moved to the Binance blockchain mainnet.
Why Was BNB Created?
Every crypto trader will love to have a better trading experience with competitively low trading fees. Binance project was created for such traders. The creation of BNB has several impacts but most importantly, it was a way to raise money to build the project while sustaining a healthy crypto community around the project.
Blockchain projects are largely characterized by its community, people who are interested in the project and are ready to start using it once it is launched. BNB became more than a Utility Token, since it was migrated to the Binance Smart Chain. It transited for being a token to a coin.
BNB is a token considered as one of the most useful digital tokens in circulation, primarily used on the Binance exchange to pay for transaction fees and for participating in token sales on the Binance Launchpad. It is currently valued at $31.22 USD with over 9000% return on investment since launch. BNB is considered a Utility Token that can be used to make payments beyond the Binance platform and it is listed on Binance and several other crypto trading exchanges.
How BNB can be used;
· As a trader, you can choose to pay your trading fees on the exchange with BNB instead of using the available assets you are trading with (like BTC, ETH, etc.). If you use the BNB coins to pay for trading fees, you will get a special discount of 25%. The standard trading fee is 0.1% of transaction amount, and it changes based on the user’s monthly trading volume and account tier level.
· As a Crypto asset, BNB can be traded for other cryptocurrencies on several crypto exchanges.
· It is also used to make charitable donations through the Binance Charity Foundation (BCF).
· As a Utility coin, it can be used outside of the Binance ecosystem to pay for goods and services like travel expenses, hotels and flights booking, use to buy virtual gifts, for online shopping etc.
We have seen a significant percentage of growth of the Binance project, the BNB coin and the Binance community as a whole. This is for no other reason than for its wide range of skills on its team and the drive to build awesome products. Binance has created an ecosystem which is comforting to its traders even to the lowest tier BNB holding accounts, who also gain some discounts on their trades. Anyone can use the Binance platform as it offers multiple gateways for fiat currency with its presence in over 180 countries.
You can sign up on Binance today to get 10% discount on all your trading fees and also remember to pay for trading fees in BNB so you can get max of 0.07% as trading fees.