BNB and its role in the blockchain ecosystem
Binance Coin (BNB) is the Binance ecosystem’s native cryptocurrency. Launched in 2017, BNB was originally presented as an ERC-20 token on the Ethereum blockchain with a total supply of 200 million. In 2019, Binance started its mainnet swap and migrated all BNB tokens to BNB Chain.
BNB Chain is composed of two blockchains, both powered by BNB:
- BNB Beacon Chain: Previously called Binance Chain, this blockchain handles BNB Chain governance functions such as voting and staking.
- BNB Smart Chain (BSC): Once known as the Binance Smart Chain, this blockchain uses the Ethereum Virtual Machine to support smart contracts and is fully compatible with Ethereum’s tools and decentralized apps (DApps).
The native Binance Coin is now an essential part of the Binance ecosystem. It is used to power the operations of the Binance and Binance.US exchanges, including other applications built on the BNB Chain, such as:
- Autoshark Finance
- The age of dinosaurs
- DEX Finance
- Open Leverage
These are just a few of the many dApps built on the BNB blockchain. Binance also remains the largest cryptocurrency exchange by trading volume and is one of the most popular exchanges in the world.
What is a coin burn?
A coin burn is when a cryptocurrency project destroys some of its coins, often to reduce the circulating supply and increase the value of the remaining coins. The coins are sent to a dead crypto wallet with an…