Whether you agree or not, cryptocurrency exchanges (CEX) should be the most extensive cryptocurrency application scenario in the world, with the largest number of users and the most popular use cases. It is also almost the first stop for people to learn about cryptocurrency. According to the encryption data website CoinMarketCap, market capitalization ranking: Bitcoin ( BTC ), Ethereum (ETH), Tether (USDT), BNB (Build and Build). From an intuitive perspective, the top three are: digital gold, digital silver, and digital U.S. dollars. The fourth-placed BNB is known as the leading platform currency . It can be used as a payment token to deduct handling fees in exchanges, and Launchpad, Launchpool, etc. are involved in the issuance of new coins. However, if you still call it "platform currency" so far, it means that you don't understand the story of BNB enough. BNB has successfully expanded into an ecosystem with multiple application functions. This article will help you get to know it from the beginning.
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ToggleReview BNB History: Functional Tokens Sublimated to General Tokens
BNB was born on Ethereum! Cryptocurrency for exchanges (2017)
In July 2017, BNB debuted as an ERC-20 token and was launched on the Ethereum blockchain for the purpose of raising funds for this fledgling exchange. At that time, the issue price was only about 0.11 USD. Its earliest use was to pay exchange fees and obtain better discounts.
Moving towards public chain applications, the first generation of Binance Chain changes the future of BNB, and DeFi Summer grows rapidly (2019)
In April 2019, BNB migrated from the Ethereum blockchain to Binance Chain. This migration brings greater scalability and flexibility to the Binance ecosystem. BNB becomes the native asset of Binance Chain, used as network fee payment, to support high-speed transactions and integration into multiple decentralized applications (dApps). BNB has since transformed from a platform currency into a public chain token.
In 2020, due to the popularity of DeFi, Ethereum network fees have soared, making it difficult for ordinary users to use it, creating opportunities for the popularization of BNB.
In September 2020, Binance Smart Chain (BSC) , which is parallel to Binance Chain, was born , supporting smart contracts and decentralized applications, similar to Ethereum, but with faster transaction speed and lower cost. BNB is used to pay transaction fees and serves as collateral within the BSC ecosystem. "Note: Binance Chain and Binance Smart Chain were later renamed BNB Beacon Chain and BNB Smart Chain"
One coin can be used for many purposes, one fish can eat many things, BNB application scenarios are constantly expanding
BNB’s uses have gradually expanded over time. Initially it was used to pay transaction fees on the Binance exchange and enjoy discounts. During the development process, it has been used for multiple purposes on and off the chain.
From an off-chain perspective, BNB holders can participate in Launchpad and Launchpool on the Binance exchange to obtain new tokens. There are also functions such as MegaDrop and Holder Airdrop that allow them to receive airdrop opportunities by holding them. They can even use BNB for daily transactions through Binance payment. Consumption.
If BNB is on the chain, it can be used for various purposes such as paying transaction fees, serving as collateral on the chain, pledging, etc. Cross-chain integration into various DeFi platforms, NFT markets, and other blockchain-based applications.
BNB has played a key role in the development of the Binance exchange and its ecosystem, and it has proven its place in cryptocurrency history, becoming the fourth largest token by market capitalization (excluding the stablecoin USDT, and third among native tokens) ), standing firm.
BNB transforms into the cornerstone of the blockchain ecosystem
Although there were many controversies surrounding BNB in the early days, such as securities doubts, these ultimately proved to be unfounded; BNB survived the accusations of the U.S. Securities and Exchange Commission (SEC) , and the global community also witnessed after several black swan events. BNB’s standing firm.
BNB supports the vast DeFi ecosystem
BNB Chain became the second largest chain after Ethereum from 2020 to 2023 when DeFi dominated the market narrative. According to DeFi Llama, to this day, BNB still drives 790 protocols on the Binance chain. Such a large and diverse ecosystem is second only to Ethereum (1155 protocols) and is unmatched by other public chains (TRON: 34, Solana: 159). As of September 1, 2024, BSC has 4.22 billion US dollars in on-chain funds, and BNB is the safe foundation for maintaining more than 600 million US dollars in daily transactions.
BNB Chain currently has more than 30 million BNB participating in pledges (about 20% of the total) and a total of 46 verification nodes; it can be seen that BNB is an important foundation for maintaining a public blockchain network, not just Pure platform function token.
Looking at the structure of the BNB Chain ecosystem, you will find that it has long been an organic community, constantly evolving with the trend of blockchain technology. The BNB-driven ecosystem encompasses all development trends of blockchain introduction to public adoption. :
In December 2023, BNB Chain announced plans to terminate the BNB beacon chain and transfer its functions to the BNB smart chain. The BNB beacon chain is also on its way out. Instead, it is replaced by a more advanced multi-chain architecture to comply with contemporary blockchain technology progress: for high efficiency and low cost, the opBNB second-layer solution (L2) is expanded, and Greenfield is developed to maintain the integrity of data storage. The BNB ecosystem has even expanded specialized L2 to meet different types of on-chain interaction needs, such as games or AI.
Due to the vigorous development of the BNB Chain ecosystem, BNB can also bring more possibilities in application and empowerment. Due to the openness and freedom of blockchain digital assets, we have also seen more and more new startups using BNB for innovative uses.
BNB original mission upgrade to bridge the majority of exchange users
Despite becoming a versatile and popular digital asset, BNB still plays the role of fee reduction on the Binance exchange , while on the centralized exchange side, it continues the ultimate goal of blockchain: mass adoption.
Although Binance Exchange is a centralized private company, through the launch of various applications and products, Binance continues to empower BNB with BNB holders as the core, allowing users to further access more crypto projects and experience The vast mystery of the world on the chain.
- Launchpad, Launchpool – By staking BNB on the exchange, users can learn about emerging potential blockchain applications and receive their tokens for free, further promoting adoption.
- Mega Drop – The crypto community loves the “airdrop” feature, pledge BNB on the exchange, and complete Web3 tasks (interaction on the chain) to receive airdrop rewards of potential tokens.
- HODLer Airdrops – A program that provides token airdrop rewards based on a historical snapshot of BNB holders’ BNB balances.
On the other hand, Binance Labs, an independent venture capital institution that has separated from Binance Group, has also invested considerable resources in BNB Chain-related blockchains, protocols, infrastructure, NFT, chain games, Metaverse, DeFi and CeFi, etc., allowing Everyone can enjoy BNB-based blockchain applications safely, simply and conveniently.
The adoption of BNB is like holding a universal currency, which can be used in different scenarios from off-chain to on-chain, thus increasing its value. Including BNB Chain, Binance Exchange, etc., different roles in the BNB ecosystem continue to have the ultimate goal of empowering BNB, thereby shaping an organic supply and demand environment.
BNB continues to develop application scenarios, but the total amount is decreasing
With the exception of Bitcoin, most cryptocurrencies adopt inflation strategies to attract people to lock their assets and receive rewards to reduce the pressure on the balance of supply and demand. However, BNB has the same fixed total amount as Bitcoin, and BNB sets the total issuance at 200 million; and BNB has also introduced two destruction mechanisms :
- Part of the on-chain transaction fees will be automatically destroyed;
- Binance Exchange will burn fixed BNB based on quarterly trading volume.
These measures will cause the total amount of BNB to continue to decrease. Currently, the total amount of BNB has been reduced to 145,934,765, leaving only 73% of the total issuance, and will be reduced to 50% in the long term. BNB Chain hopes to accelerate the reduction of supply and increase the intrinsic value of BNB through such a destruction mechanism, which also makes many holders look forward to its value growth.
On the road to decentralization, future applications of BNB can still be expected
The development process of BNB is undoubtedly an unprecedented and historically significant story. From its birth as a simple utility token on Ethereum to becoming a core asset driving the global crypto ecosystem, BNB’s evolution not only demonstrates Binance’s vision for the future crypto world, but also leads more people into the crypto field through exchanges , while continuing to deepen support for the decentralized world, allowing more people to freely explore the world on the chain.
Nowadays, more exchanges want to follow BNB's development path. However, the vast majority of them still almost only stay at the platform application level. Only BNB can expand into a multi-functional ecosystem with it as its core and span multiple blockchains. BNB continues to write its own story. Earlier, regulatory agencies from many countries, including the U.S. Securities and Exchange Commission, have successively approved Bitcoin and Ethereum spot ETFs. Perhaps one day, we can also expect BNB ETF to become one of the options in the traditional financial trading market. Who can say for sure? Woolen cloth?
