About Binance Coin (BNB)weiss-badge

Binance Coin (BNB)


Binance is a popular blockchain-based cryptocurrency exchange platform that uses the Binance coin cryptocurrency for trading and making digital payments. Currently, Binance stands as one of the world's largest cryptocurrency exchanges, with about 1.4 million transactions happening within a second. The best part about Binance is that it allows for a degree of interoperability between the different cryptocurrencies available today. The digital currency Binance coin (BNB) can be traded for any other crypto like Ether, LiteCoin, Bitcoin, and more.


History


BNB was initially created as part of the Ethereum blockchain and was first launched in July 2017. During this Initial Coin Offering, or ICO, half of the BNB tokens were distributed among investors and the Binance founding team. The other 50% of the initial coins were made available for public sale, which amounts to 100 million BNB. Each BNB token at the public sale was sold at 15 cents per token and helped raise about $15m in Bitcoin and Etheruem.


BNB is envisioned as a better alternative to trade digital assets and solve the current problems faced by cryptocurrency exchanges. While it allows for trading between other cryptocurrencies, it is also quite distinct from other cryptocurrencies. Unlike Bitcoin, BNB does not have any fiat currency pairs and transacts in crypto only. BNB is run on the Binance blockchain, the native Binance chain.


Team


Binance CEO Changpeng Zhao (known as CZ) founded Binance in July 2017. In 2018, Binance became the world's largest exchange by trade volume. Zhao is a skilled developer, having worked in tech for many years and developed several exciting technologies, such as future tradings back when he worked for Bloomberg. He's said that he now owns no fiat currency - no mean feat!


Yi He is the co-founder of Binance. She is a very well-known cryptocurrency crusader, co-founding OKCoin before becoming involved with Binance. While she's less well known in relation to Binance than CZ, she's still very important to the direction of Binance and Binance coin.


Initially, Binance was based in China but soon established its offices in Taiwan due to the rising regulation of cryptocurrency within China. It has subsequently moved to Malta.


Technology


BNB token started as an Ethereum-based token and was then fully developed into its own implementation. It uses the Tendermint consensus mechanism, speeding up the transaction validation process.


BNB Burning


"BNB burning" ensures the supply of BNB stays finite and reduces inflation. This burning process occurs every quarter. Binance buys back some BNB coins and destroys them. Binance intends to eventually burn 100 million BNB, half the total supply. The rate with which this will occur has increased since the last quarterly burn. CZ said: "At [this] rate, it would take roughly 27 years to finish the burn. So, we thought it's time we speed it up a bit. Exactly how much faster? We are not 100% sure. The current accelerated burn would put the trajectory to be around 5-8 years to finish the 100 million BNB."


Is It Money?


Like Ethereum, it is possible to use Binance for many purposes besides using it as an exchange platform. Let's examine if BNB can be used for all four classical functions of money.


The first function of money is that is serves as a medium of exchange. BNB can be used to purchase goods and services by some merchants, including BitTorrenting, in-game purchases, travel bookings, and more.


The second function is that of a store of value. BNB is not a perfect store, but it still qualifies as money here. Although the price may fluctuate daily, the reason people hold BNB as a store of wealth is because they believe it will be worth something tomorrow, or next year.


The third function is a unit of account. You know you can purchase two plane tickets with a certain amount of BNB. You know you can also use that certain amount to pay your transaction fees on Binance. BNB can be used to measure the value of other goods and services.


The final function is as a standard of deferred payment. In order to satisfy this condition, BNB can be used to purchase things (say plane tickets) right now. You must be also be able to use it to buy plane tickets today, but pay for it in the future. This is a future agreement, or loan. BNB can be used on several money lending platforms.


This means that BNB counts as money, as it satisfies the four classical definitions of money.


Future Focus


A BNB coin is valued much less than the most popular cryptocurrency, Bitcoin, but it is experiencing a good level of growth in value every quarter. They rank in the third position by value among all cryptocurrencies, have a price of US$407.18, and have a market cap of $63.8 Bn. [as of 09/04/2021].


The most crucial factors that can affect BNB pricing would be the supply and demand relationship and the success of ICOs. As the Binance foundation makes sure to keep the supply in check through BNB burning, the price predictions for the next few years for BNB have all been on the positive side.


Binance is also developing their platform beyond just BNB and an exchange. Binance Dex, which was set up back in 2019, allows users to make their own decentralised apps (or Dapps).


Binance Launchpad, which began back in 2019 also, is a platform that helps people "launch: their own new token. Recently BTT (BitTorrent Token) got its start through Launchpad.


For more information about BNB, visit the official site.


Wallets


There are many great options for storing BNB. Please refer to this article to determine which is best for you. At BitPrime, we highly recommend buying a Trezor or Ledger device for the ultimate security, although good free options include Jaxx Liberty and Exodus.

A wallet is essentially a bank account for your cryptocurrency and the wallet address is like your account number. The sender of the cryptocurrency needs a wallet address so they have somewhere they can send it from their wallet, much like a bank transfer. This wallet is giving you access to the blockchain where you can view your balance, send and receive cryptocurrency.

For information please read our beginners guide to cryptocurrency wallets.

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Storing your coins with Wallets

A wallet is essentially a bank account for your cryptocurrency and the wallet address is like your account number. The sender of the cryptocurrency needs a wallet address so they have somewhere they can send it from their wallet, much like a bank transfer. This wallet is giving you access to the blockchain where you can view your balance, send and receive cryptocurrency.

For information please read our beginners guide to cryptocurrency wallets.

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POLI - internet bankingPOLI is secure and fast. It links directly to your internet banking – login with your normal details and the rest is easy. No extra fees or surcharges. Watch this short video to see how it works.

About Bitcoin

Bitcoin (BTC) is a form of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Transactions are stored on a distributed, immutable, online, public ledger known as a blockchain. Bitcoin was the first truly decentralised cryptocurrency which was created by a programmer under the pseudonym Satoshi Nakamoto and was released in 2009. The system is peer-to-peer, verified by network nodes and recorded in a public distributed ledger called the blockchain. Bitcoin can be exchanged for other currencies, products, and services with over 100,000 merchants and vendors accepting bitcoin as payment. Bitcoin can also be held as an investment. There are only a fixed number of Bitcoin will ever be mined (21 million), it’s not controlled by any one government or central bank, and there’s no such thing as quantitative easing or fractional reserve banking. These qualities make Bitcoin excellent as a store of value and a long-term safe-haven asset, similar to gold.

A Bitcoin success story that went viral on social media is Kristoffer Koch from Norway. Koch invested around $27 in Bitcoin in 2009 and then forgot about it for four years. He remembered about his Bitcoin wallet in 2013, which had then grown in value to $886,000.

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