Binance Coin (BNB)
Official webpage https://www.binance.com/en/bnb
Binance Coin (BNB) was created by the exchange Binance 2017. First as an ERC20 on the Ethereum network, but shortly afterwards as a separate network. The coin is similar to Ethereum in many ways, and supports transactions and smart contracts.
BNB is faster and has much lower fees than Ethereum, which has given it a real boost in 2021, when Ethereum's transaction costs skyrocketed. The speed can be explained by the fact that BNB is not as decentralized as Ethereum. They still hold their private keys, but consensus is reached with only 21 nodes in the network, which are controlled by Binance themselves. The consensus method is Proof of Staked Authority (PoSA).
Since BNB left the Ethereum network, so-called token burns have been performed regularly, to reward existing owners of the coin. Fewer coins in circulation, of course, means a higher price for those who are still circulating. At the time of writing, there are still about 154 million BNB in circulation.
BNB can of course be used on Binance, but also on their decentralized exchange Binance DEX. Recently, many external parties have started to build diligently with the Binance Network and have created systems corresponding to Uniswap, such as PancakeSwap where you can exchange coins with low fees.
- Fast network with low fees.
- Relatively many coins on top of the network today through BEP20 and BEP2. Easy to swap coins.
- Run by one of the most established players in the crypto market.
- Centralized consensus, requires trust in Binance.
- No support for anonymous / secret transactions.
You can buy directly with a credit card or bank transfer at Binance.