BNB is one of the most well-known cryptocurrencies in the world, originally launched by the Binance exchange. If you are just getting started with crypto, this guide will break down what BNB is, how it works, and why people use it in plain, easy-to-understand terms.
BNB stands for "Build and Build" and is a cryptocurrency created by Binance, one of the largest crypto exchanges globally. It first launched in 2017 as an ERC-20 token on the Ethereum blockchain. Later, in 2020, BNB moved to its own blockchain called BNB Chain, where it now serves as the network's native token.
BNB runs on the BNB Chain, which is a blockchain network designed for fast and low-cost transactions. Users can send and receive BNB, trade it for other tokens, and interact with decentralized applications (dApps) built on the network. The BNB Chain uses a consensus model called Proof of Staked Authority, which allows selected validators to confirm transactions efficiently without heavy energy consumption.
BNB has several practical uses within the crypto ecosystem. People often use it to pay trading fees on the Binance exchange at a discounted rate, pay for transaction fees on the BNB Chain, and participate in token launches. It can also be used for staking, lending, and interacting with decentralized finance (DeFi) platforms and games on the BNB Chain.
BNB is available on many major cryptocurrency exchanges and can be purchased with fiat currency or other digital assets. Once you own BNB, you can store it in various types of wallets, including hardware wallets for maximum security, software wallets on your phone or computer, and exchange-based wallets. It is generally recommended to use a private wallet where you control your own keys rather than keeping assets on an exchange long term.
Binance conducts regular "token burns" to reduce the total supply of BNB over time. This means a portion of BNB tokens is permanently removed from circulation. The goal of this process is to make BNB a deflationary asset over the long term, meaning there will eventually be fewer tokens available.
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Create a Free Binance Account →No. Binance is a cryptocurrency exchange, while BNB is a cryptocurrency token originally created by Binance. They are related but serve different purposes.
No. While BNB was created by Binance and is often used on that exchange, it is a standalone cryptocurrency that can be bought, stored, and used on other platforms and wallets as well.
BNB Chain is a blockchain network where BNB is the native token. It supports decentralized applications, smart contracts, and fast, low-cost transactions, making it a popular alternative to other blockchains.
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