Binance Coin (BNB) Cryptocurrency

Launch Date

July 2017

Creator

Changpeng Zhao (or CZ)

Consensus Mechanism

Proof-of-Staked Authority (PoSA

Binance Coin, abbreviated BNB, is the most popular crypto coins in circulation, with a market cap that is the 4th largest, behind only Bitcoin, Ethereum, Tether.

BNB was created by the Binance crypto exchange, specifically as a utility token with the explicit purpose of paying transaction fees to use on the Binance crypto exchange. Using BNB to pay for transaction fees on Binance gives a 25% discount on those fees.

BNB is the native coin to the Binance Smart Chain, the Binance blockchain that supports smart contracts. It was issued originally in 2017 as an ERC20 token on Ethereum, but has been updated to exist on the Binance blockchain.

Purpose of BNB Crypto

BNB was created as a discount token to be used to pay for fees associated with using the Binance crypto exchange. Using BNB is a cheaper way to pay Binance fees than with other crypto coins or fiat currency. This was the primary reason BNB was created and is the most popular purpose for the coin.

BNB is considered a utility token, because its primary function is to pay Binance exchange fees at discounted rates.

The video below explains more about BNB, the Binance exchange, the Binance Chain, Binance Smart Chain, and related concept.