Understanding Binance Coin

By Stan Peterson
Published July 29, 2021 Updated July 29, 2021
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Binance Coin

Understanding Binance Coin

By Stan Peterson
Published July 29, 2021 Updated July 29, 2021

Binance Coin (BNB) is a newcomer to the crypto world, yet it has gone on a bullish run since it was created. The coin was developed by Binance, the largest crypto exchange platform in the world, to serve as a transactional coin across its network.

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BNB has done well since its launch, but there are surely lingering questions. This article gives a precise insight into what Binance Coin is and how to trade BNB for BTC.

What to Know about Binance Coin (BNB)

What Is Binance?

Binance is a crypto conversion service that has gone from one of the forerunners to the largest in the industry. To put it in perspective, Binance is supported in over 150 countries, and Binance.US alone records an estimated average of $2 billion daily. Binance supports fiat-to-crypto exchanges.

What Is Binance Coin?

Binance Coin is an ICO-funded crypto founded in 2017 to facilitate payments across the Binance network. BNB serves as a digital fuel for the entire Binance ecosystem, and it allows you to save on the payment of fees, earn money for holding an asset, and participate in investment trends.

Uses of BNB

BNB can be used as a payment method for: 

  • Trading tokens on the Binance CEX and Binance Smart Chain
  • Transactional fees on the Binance DEX and Binance Chain
  • Making online and offline transactions using Binance Pay/Card

Mechanisms of Binance Coin (BNB)

Design and Security Model

BNB operates on the Tendermint BFT consensus, a system that works with three node types:

  • First: Validator (special members of the community in charge of validating trades) 
  • Second: Witness (present at the validation process and communicates decisions to other nodes)
  • Third: Accelerator (owned by various organizations and helps quicken the trade validation procedure)

This system accords collated tokens among validator nodes when blocks are produced.

Token Policy

The supply of BNB is capped at 200 million tokens, 50% of which were made available to the public during launching, 40% to the founders, and 10% to angel investors. Binance has put in a mechanism known as The Burn with the objective of phasing out 100 million BNB tokens over time to curb value depreciation. 

Where to Buy BNB Coins

Godex

Godex is one of the fastest exchanges in the industry with an order execution time of five to 30 minutes. The service has over 200 currency pairs to select from, e.g., BNB to BTC at Godex.io

Binance

Binance is the largest crypto exchange in the world and owns Binance Coin. It’s a reliable place to buy your BNB.

Paybis

Crypto conversions and transactions are completed at Paybis using a credit or debit card within minutes. The platform has been around since 2014.

Poloniex

This platform is among the top 15 crypto exchanges judging by dollar amount volume. Its services are, however, unavailable to US customers. 

Final Words

BNB is owned by Binance, the leader among exchanges worldwide. The coin is listed across other trusted exchanges, such as Godex and Paybis. Depending on your decision to hold the coin or not, you may exchange it for other digital assets using the platforms above.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
314 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.

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