Binance is the largest cryptocurrency exchange in the world that was introduced in 2017 by Changpeng "CZ" Zhao. Since its launch, Binance has evolved to more than a digital exchange, and it currently has its own blockchain network called BNB Chain. The chain is a merge from two blockchains Binance Chain and Binance Smart Chain. Though the blockchain networks of Binance are quite new, they have a large user base, because they have relatively fast speed and low gas fee.
The BNB token was originally released as an ERC-20 token to raise funds for the Binance exchange in 2017. Then, when Binance launched their own networks, BNB with BEP token standards was released as the native token, and holders of ERC-compliant BNB could exchange for BEP-compliant tokens at a 1:1 ratio.
Binance is an ecosystem of solutions for digital assets that consists of CEX, DEX, blockchain networks, cryptocurrencies, etc. BNB Chain, the main blockchain network, uses the Proof of Stake (PoS) and Proof of Authority (PoA) consensus mechanisms. It has two sub-chains:
- BNB Beacon Chain (formerly Binance Chain) is responsible for governance
- BNB Smart Chain (formerly Binance Smart Chain) is EVM compatible and is where most on-chain transactions operate
BNB, the native token of the Binance ecosystem, was created to raise funds for the Binance CEX and later used to enjoy discounted trading fees for users. Then as the ecosystem expands, the use cases of BNB also increase. Now BNB tokens can be used to pay gas fees and to stake on the BNB Chain, as well as used as payment methods accepted by various merchants.
BNB's Total Supply: 200,000,000
BNB's Circulating Supply: 161,337,261.09
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