Binance Coin (BNB)
BNB is the native crypto of the Binance ecosystem.
The Binance Ecosystem
Binance started off as a crypto exchange in 2017. Today, it is one of the biggest players in the crypto industry.
The Binance ecosystem includes:
- multiple crypto exchanges,
- multiple cryptos - Binance Coin (BNB), Binance USD (BUSD), Bitcoin BEP2 (BTCB)
- Trust Wallet and its TWT token,
- Token Launchpad, and more.
- Binance also operates some cryptos - BNB and BUSD.
Binance Coin (BNB) was issued as part of Binance's initial coin offering (ICO). Its first use case was discounted trading fees on the Binance exchange. Did you know that 90% of Binance employees earn a portion of their income in BNB?
BUSD is a US dollar-backed stablecoin issued jointly by Binance and Paxos. BUSD is one of the few stablecoins approved by the New York State Department of Financial Services (NYDFS).
We are fans of Trust Wallet, a popular mobile wallet that supports 53 blockchains and more than a million digital assets. It was acquired by Binance in 2018.
Binance Chain, the first blockchain from Binance, is optimized for fast decentralized trading but lacks smart contracts and strong programmability.
That's why Binance Smart Chain (BSC) was created. It runs parallel to the original Binance Chain, has smart contract functionality, and is compatible with the Ethereum Virtual Machine (EVM).
BSC is an independent blockchain and is not a layer two or off-chain scalability solution. BSC is a hard fork of the Go Ethereum (Geth) protocol,
Binance Smart Chain has a block time of around 3 seconds. The native token of both blockchains is BNB.
Validators stake BNB and can receive transaction fees. Unlike Bitcoin, there is no block reward by way of newly minted BNB. This is because BNB is not inflationary. Instead, the supply of BNB decreases over time, because the Binance team regularly "burns" coins.
BSC has 11 validators on the testnest and 21 validators on the mainnet. These Validators are selected every 24 hours and must stake a minimum of 10,000 BNB.
Interestingly, BEP-2 and BEP-8 tokens from Binance Chain can be swapped for BEP-20 tokens on BSC. This can be easily done using the Binance Chain Wallet.
What we hate about Binance
Binance has 3 crypto exchanges:
- Binance.com - the original and largest crypto exchange by volume.
- Binance.us - which was created after Binance was banned in the US in 2019 on regulatory grounds.
- Binance DEX - a decentralized exchange built on Binance Chain.
Of late, we have come to hate the Binance.com crypto exchange due to its glitches and outages.
In fact, a group of derivative traders is suing Binance for trading losses suffered due to outages of the platform. This case could set a global precedent on the liability of exchanges.
What we fear about Binance
Binance is facing legal troubles across the world - Canada, Cayman Islands, Italy, Japan, Malaysia, Singapore, South Africa, Thailand, the UK, and the USA.
It's not just problems with regulators. Hundreds of investors are expected to take part in proceedings against Binance, seeking damages for money they lost during a major outage.
Binance says it has no official headquarters. That has made it difficult for investors to figure out how, and where, to take the company to court. Swiss private equity firm Liti Capital has promised to provide a minimum of $5 million in funding for the case.
Binance is probably the most important part of the crypto ecosystem and its legal problems could have a massive negative impact on crypto prices.