What is BNB?

BNB, also known as Binance Coin, is a digital asset that was introduced in July 2017 by a prominent player in the digital asset exchange space. BNB is a crucial part of the company's ecosystem, which includes the company's Chain, Smart Chain, Academy, Trust Wallet, and various research projects. The ecosystem aims to utilize blockchain technology to bring a new era of finance to the world. BNB was initially an ERC-20 token on the Ethereum blockchain, but later transitioned to its own blockchain, secured by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism.

How does BNB work?

BNB operates within the company's ecosystem, providing utility across various functionalities. It is used to cover transaction costs on the company's Chain and Smart Chain, and also plays a role in the company's Academy, Trust Wallet, and other projects. BNB employs a deflationary mechanism, known as a token reduction mechanism, to sustain its usefulness. This involves periodically removing tokens from circulation, with the company aiming to remove up to 50% of the total BNB supply through its quarterly reductions. BNB's Auto Burn program calculates the number of tokens to be removed based on the total number of blocks produced on the company's Smart Chain and BNB's average utility value during the quarter.

What are the potential use cases for BNB?

BNB serves multiple use cases within the company's ecosystem. It is used to cover transaction costs on the company's Chain and Smart Chain, and can also be used in various company projects. BNB holders can participate in token sales hosted on the company's Launchpad, and the coin can also be used for payments in real-world scenarios, such as accessing services such as accommodation or travel. Furthermore, BNB is used in the company's token reduction mechanism, which aims to sustain the usefulness of the digital asset and create a deflationary effect.

What is the history of BNB?

BNB was introduced in July 2017 by a prominent player in the digital asset exchange space, known for its high daily trading volume. The coin was initially an ERC-20 token on the Ethereum blockchain, but later transitioned to its own blockchain. The company's founder and CEO, Changpeng Zhao, and co-founder, He Yi, have been instrumental in the development and growth of BNB. Since its launch, BNB has experienced growth in user adoption, particularly at the beginning of 2021, attracting considerable attention from participants. The company continues to innovate and expand its services, with BNB playing a crucial role in the operation of many of the company's sub-projects.