BNB

What is BNB?

BNB is the native coin of BNB Chain, a group of blockchains whose main network is BNB Smart Chain. It was launched in 2017 by the crypto exchange Binance, at first as a token on Ethereum, and later moved to Binance's own blockchains.

BNB started as a way to get trading fee discounts on Binance. Today it is also the coin that pays for every transaction on BNB Smart Chain.

How does it work?

BNB Smart Chain is compatible with Ethereum's software, so many Ethereum apps and wallets also work on it. It uses a system called proof of staked authority. A limited set of validators, chosen according to how much BNB is staked with them, take turns producing blocks.

BNB is regularly burned, meaning coins are permanently removed from supply. Part of the fees paid on BNB Smart Chain is burned automatically, and a separate scheduled burn programme removes more. These burns are designed to reduce the total supply over time.

What is it used for?

Common uses of BNB include:

• Paying gas fees on BNB Smart Chain
• Getting discounts and access to features on the Binance exchange
• Staking with validators to help secure the network
• Trading and lending in apps built on BNB Smart Chain

Much of the demand for BNB comes from people who use Binance or apps on BNB Smart Chain. That makes BNB different from coins with no single company behind them: its usefulness is closely linked to one business and its ecosystem. Before holding BNB, it helps to understand how much of its value depends on Binance continuing to operate normally.

Key facts

• Launched: 2017
• Creator: Binance
• Consensus: proof of staked authority (BNB Smart Chain)
• Blockchain: BNB Smart Chain (originally a token on Ethereum)