Cryptocurrency or crypto : Binance Coin (BNB) coin Definition,Why Binance Coin ,History of BNB, Founder,Owner, CEO, BNB Market Rank,Security,Market cap,Roadmap,Market Circulation

 Cryptocurrency or crypto : Binance Coin (BNB) coin Definition,Why Binance Coin ,History of BNB, Founder,Owner, CEO, BNB Market Rank,Security,Market cap,Roadmap,Market Circulation

What Is Binance Coin (BNB)?

Logo Image of Binance Coin (BNB) coin
 Logo Image of Binance Coin (BNB) coin 

Launched in July 2017, Binance is one of the biggest cryptocurrency exchanges globally. By aiming to bring cryptocurrency exchanges to the forefront of financial activity globally. 

The idea behind Binance’s name is to show this new paradigm in global finance — Binary Finance, or Binance.

Aside from being the largest cryptocurrency exchange globally, Binance has launched a whole ecosystem of functionalities for its users. 

The Binance network includes the Binance Chain, Academy, Trusted Wallet and Research projects, which all employ the 

powers of blockchain technology to bring new-age finance to the world. Binance Coin is an integral part of the successful functioning of many of the Binance sub-projects.

About Binance coin ecosystem

>>BNB powers the Binance ecosystem and is the native asset of the Binance Chain. BNB is a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. Designed to be used for a fee reduction on the Binance exchange, its scope was extended over the years.

>>BNB powers the Binance Chain as its native chain token. For instance, it is used to pay fees on the Binance DEX, issue new tokens, send/cancel orders, and transfer assets.

>>BNB is also powering the Binance Smart Chain, which is an EVM-compatible network, forked from “go-ethereum”. It supports smart contracts and relies on a new consensus mechanism: Proof-of-Staked Authority (PoSA) consensus (“Parlia”), which incorporates elements from both Proof of Stake and Proof of Authority. BNB is used for delegated staking on the authority validator, leading to staking rewards for users and validators.

>>Besides its on-chain functions, BNB has multiple additional use-cases such as fee discounts on multiple exchanges (e.g.,, payment asset on third-party services, and participation rights & transacting currency on Binance Launchpad.

>>At the core of the economics of BNB, there is a burn mechanism leading to period reductions in its total supply (~ every three months). From its initial maximum supply of 200 million, burns are expected to continue until the supply reaches 100 million.

Who Are the Founders of Binance Coin?

Image of Changpeng Zhao is the founder and CEO of Binance
Image of Changpeng Zhao is the founder and CEO of Binance | Image source : LinkedIn

Changpeng Zhao is the founder and CEO of Binance. In 2001, Zhao joined Bloomberg as head of tradebook futures development. He spent four years with the company and later joined Fusion Systems as a partner.

Since 2013, Changpeng Zhao has been actively involved with blockchain technology and cryptocurrencies. He became head of development at Blockchain, and in 2015 he founded BijieTech. In 2017, Zhao officially launched Binance, and he has been the CEO of the company ever since.

He Yi is a co-founder and chief marketing officer at Binance. She started her career as a TV anchor and presenter on China Travel TV in 2012. Later, in 2014, Yi co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time. In 2017, she joined forces with Changpeng Zhao, and together they created the largest crypto exchange globally — Binance.

What Makes Binance Coin Unique?

Binance is a unique ecosystem of decentralized, blockchain-based networks. The company has grown to be the leading crypto exchange in a number of countries, and their side organizations are attracting significant interest as well.

One of the biggest competitive advantages Binance has is its drive for development. While the company started only as a crypto exchange back in 2017, today, Binance has spread its services among numerous different spheres. 

According to the company website, its mission is to become the infrastructure services provider for the entire blockchain ecosystem.

Since launching the Binance Coin, the exchange has also benefited from increased investor interest in the token. 

BNB went through a significant price increase at the beginning of 2021, which has put it on the map of enterprise investors.

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Market Rank of Binance Coin (BNB)

Current Market Rank of Binance Coin(BNB) is in Top 4 

Market Cap of Binance Coin (BNB)

Current market Cap of Binance Coin(BNB) is 78.94Billion USD

How Many Binance Coin (BNB) Coins Are There in Circulation?

There is a maximum supply of 170,532,785 BNB coins, of which 153,432,897 are currently in circulation as of April 2021.

According to the Binance whitepaper, exactly half of the maximum supply of BNB tokens was allocated towards the initial coin offering (ICO) and public sale of the token.

 Another 40% of the total supply, or around 80,000,000 BNB coins, was distributed among the founding members and team. Finally, the remaining 10% of the maximum supply was split among angel investors.

BNB supply was initially set at 200,000,000 coins. As mentioned in its whitepaper, BNB’s supply will be reduced to 100,000,000 units, a decrease by -50% of its original supply, owing to a burn mechanism.Every three months, Binance burns several BNBs based on its revenue. Owing to this burn mechanism, the supply of BNB is gradually decreased, increasing its scarcity.

Economics of Binance Chain

Binance Chain economics relate to fees on the network, including trading fees associated with Binance DEX, transaction fees (e.g., transfer asset fees), and other function calls (e.g., freezing, issuing calls).In Binance Chain, 11 validators are in charge of the network operations due to the use of a Delegated Proof-of-Stake (DPoS) consensus mechanism.

Economics of Binance Smart Chain

In the Binance Smart Chain, BNB runs similarly to how ETH runs on Ethereum: it is the native asset of the BSC.In BSC, BNB is used to:

Pay gas for transfer, to deploy, and interact with smart contracts.

Perform cross-chain operations, e.g., transfer assets between Binance Smart Chain and Binance Chain (through the cross-chain channel discussed in the previous section) require BNB. It provides incentives for relayers to contribute to validate any cross-chain transaction.

Staking: users can vote for validators, through a vote delegation process, to collect staking rewards. Similarly, validators can run nodes and compete to receive rewards from transaction fees from users.

While the economics of BSC remain similar to other networks, fees would be collected by both validators and delegators.

How Is the Binance Coin Network Secured?

Initially, the Binance coin started as a traditional ERC-20 token on the Ethereum blockchain. 

Later on, the company introduced its own blockchain, and the coins started being issued from the Binance blockchain, secured by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism.

While ERC-20 tokens rely on the proof-of-stake (PoS) consensus, which allows them to be extremely scalable, and allows for the creation of smart contracts. Unlike PoS, the Binance blockchain does not support smart contract functionalities.

 In contrast, the Bitcoin blockchain is secured by the proof-of-work (PoW) consensus, which is far more limited and consumes large amounts of electrical and computing power.

Where Can You Buy Binance Coin (BNB)?

As the dedicated utility token of the Binance exchange, the most straightforward way to acquire BNB coins would be to purchase them through Binance.

 The original exchange supports the largest variety of trading pairs with BNB, and it also has the best trading rates for the coin. Since the launch of Play2Earn games, interest in the BNB to PHP price has increased substantially.

If you are looking for alternative exchanges where you can purchase BNB, FTX is a good choice. Keep in mind that investing in cryptocurrency can be risky, just like investing in any other type of asset.

Binance Chain’s key features

Tendermint BFT consensus with an application layer

Binance Chain relies on the Tendermint BFT consensus and Delegated Proof of Stake (DPoS) with a dedicated application layer that runs upon it. As of today, the vote delegation feature is not open for users.Binance Chain is built on forks of Tendermint and Cosmos SDK. 

Specifically, Binance Chain is made on a revised edition of the Tendermint consensus while leveraging its P2P networking logic.At any given state, the following information is being recorded:

Account and balances: the balance (i.e., the number of tokens) of each asset is composed of 3 different parts: locked, frozen, and available. It is recorded on all accounts.

Fees: it represents how much fees were paid in the previous block.

Token information: what are the tokens, along with their respective information (frozen supply, etc.)

Trading pairs: the list of all the trading pairs on Binance DEX.

Tick size and lot size: various information related to the trading engine of Binance DEX.

Governance information: information about the validators, and governance mechanism of the Binance Chain.

 Native token standards

At the core of Binance Chain, assets are stored as tokens on the network, under the BEP-2 standard.

The native BEP-2 token standard

Each BEP-2 token is represented by the following set of information:

Source address: each token has a dedicated owner, represented by an address.

Token name: it represents the long name of the token - e.g. "Binance USD".

Symbol: each token has a specific ticker (e.g., BUSD) used to distinguish one from the other.

Total supply: this number represents the total number of issued tokens at a given time.

Mintable: this boolean property refers to whether the token can be minted in the future (which would lead to an increase in the total supply).

Any user can issue or list a token for a specific fee that is specified in the documentation.

While BNB is a BEP-2 asset, BNB also operates as the gas fee of the Binance Chain and is used for transaction fees, issuance costs for new assets, minting and burning costs, trading fees, and other features (e.g., freezing, unfreezing).

The BEP-8 mini-token standard

In addition to its native utility token standard, Binance Chain also supports a mini-token standard: BEP-8.This token standard allows issuers to list the “Mini-BEP2 token” without voting but can only be listed against BNB or BUSD.Some of its use-cases could include small enterprise tokens of utility and/or shares, on-chain point system, community tokens, and Intellectual Property (IP) tokens.Compared to BEP-2, BEP-8 tokens offer multiple advantages:

Cheaper (than BEP-2) to issue tokens, as it takes less network resources.

Self-managed listing process: the process to list a BEP-8 token is fully self-managed. Hence, it does not need to get validators to vote to list against BNB, nor against BUSD.

However, as a result, there are restrictions such as it is impossible to list a BEP-8 token as a quote asset, supply limitations (maximum is 1,000,000 units), etc.

A native on-chain matching engine: Binance DEX

Binance DEX is the first decentralized application running on Binance Chain and runs natively on the network.At its core, Binance DEX is built on the following premise: “the most efficient and low-cost way to perform trading and price-discovery is to use a single order book”.Hence, Binance DEX’s order book is managed and replicated across all full nodes with a single deterministic matching logic. Unlike other decentralized exchanges with off-chain matching, Binance DEX’s matching process is built into the Binance Chain natively.Some of the benefits include:

Transparency: since all transactions occur on-chain, it is possible to easily filter orders from any user, making it transparent for any third-party to analyze orders.

Front-running resistance: unlike some Ethereum-based DEX, order matching is not dependent on gas fees. In the event of network congestion, some DEXs can face gas-arbitration where traders front-run others. Binance DEX is resistant to such practices.

Speed: since orders are matched on a FIFO-logic natively on-chain with 1-second blocktime, the order process is almost instantaneous and makes the process seamless from the perspective of users.

However, Binance DEX’s matching engine is built on a different logic than centralized exchanges like matching engine is an auction-based mechanism such as that any new block, candidates for the matching process are:

New orders get confirmed by being accepted into the latest block.

Existing orders that come in the past blocks before the latest, and have not been filled or expired.

Since the match-time is one block with 1-block finality, Binance DEX has effectively, under normal conditions, a 1-second matching process.

 Atomic swaps and Hashed Time-Locked Contract (HTLC) functions

BEP-3 is a technical standard proposed and implemented on Binance Chain in late 2019, introducing a mechanism for smart contracts to be achieved through the use of Hashed 

Time-Locked Contract functions and other interoperability mechanisms.

This mechanism allows atomic swaps to operate on the Binance Chain, with EVM-compatible networks like Ethereum.The process is typically handled in a 5-step process:

1. Approve the ERC-20 token to swap the contract address.

2. Initialize swap transactions.

3. Send HTLT transaction.

4. Send HTLT claim transaction.

5. Claim the ERC-20 token.

Image of atomic swaps to operate on the Binance Chain

Reference of this Information

Binance Coin(BNB) official website

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