BINANCE COIN – What Is BINANCE COIN – How It Works – BINANCE EXCHANGE TOKEN Review
Hi, if you are looking for information on Binance Coin, then you are very lucky, you are on the right video. We have collected a lot of interesting information about this cryptocurrency, the history of its creation, how it works and how millions of dollars are made with it. Without taking much of your time, we will quickly and clearly tell you many useful facts about Binance Coin. Also, under the video, we will leave you a link to purchase this currency. Don’t forget to subscribe to our channel and watch our other videos. Be careful, we’re starting! (BNB – Binance Exchange Token)
For most people who are familiar with cryptocurrencies, the Binance exchange is a familiar place.
But users who do not use the services of the Binance exchange may not know that the project has its own token – the Binance Coin cryptocurrency. This coin was issued on the Binance ICO and with the rise in popularity of the exchange, the price of BNB Coin is also increasing.
Binance Coin is the token of the Binance exchange. However, in essence, this is the same currency as, for example, Bitcoin or any of the altcoins, i.e. it is subject to volatility and can participate in exchanges for other assets.
Did you know that Binance Coin was created as an ERC20 token and originally worked on the Ethereum blockchain. But in 2019, the coin “moved” to its own blockchain.(History of Binance Coin)
The BNB Coin cryptocurrency was released through an ICO that took place in July 2017. As a result, they raised $ 15 million. It seems quite a bit against the background of such “giants” ICOs as Eos or Tron, which earned several billion dollars each. According to open sources, half of the funds raised went to promotion and advertising, 35% to the development and improvement of the platform, and 15% went to the company’s reserve.
Since BNB Coin is the internal cryptocurrency of a centralized exchange, naturally, all coins were mined. Their number was 200 million, but in the end only half should remain – 100 million. The organizers decided to distribute the coins as follows:
50% – to ICO participants;
40% – “reserved” for the company;
10% – to investors of venture funds.
BNB coin is the native token of the Binance Chain blockchain, which is a simple, peer-to-peer system with high throughput and scalability. (High throughput and scalability)
Binance uses the Byzantine Fault Tolerance consensus mechanism to protect the blockchain, also known as Byzantine fault tolerance. The task of the Byzantine Generals was invented back in the last millennium as a logical dilemma leading to the conclusion that if more than 33% of the nodes of a particular system are captured by attackers, then it is doomed. But thanks to BFT, you can solve this problem and successfully resist attacks from unscrupulous nodes.
The network has a minimal set of functions, but transactions in it take place almost instantly, blocks are created in less than 1 second, and it is capable of the highest loads. Binance Chain does not support smart contracts, this option was sacrificed to increase performance, but allows the deployment of third-party blockchain projects on the backbone. That is, the Binance ecosystem, in fact, is a competitor to Ethereum and some projects have already switched to it.
Another very interesting fact is that the Binance Coin price was set on the Binance Coin ICO at $ 0.1 per 1 BNB. As we said, the Binance Coin cryptocurrency is showing natural growth. But in January 2018, like many cryptocurrencies, Binance Coin had a crazy “jump”, when in just 12 days the price of Binance Coin from $ 7.86 to a record $ 24.91. (Burning Binance Coin)
During the transition of BNB to Binance Chain, the administration of the exchange performed coin burning on the Ethereum network using the smart contract liquidation function. The number of coins that Binance burns depends on the number of exchange transactions in three months.
Since the launch of Binance Chain, burning of BNB coins no longer occurs on the Ethereum network and now the function is activated using a specific command in the Binance Chain, not a smart contract. Thus, Changpeng Zhao’s team is protecting their cryptocurrency from inflation.
Every quarter, Binance’s board of directors buys BNB tokens from the digital marketplace, spending 20% of the profits they received from transaction fees, and then burning them. The strategy is to cut the supply of coins by 50 percent, leaving the final 100 million tokens. Each time this happens, the bnb coin increases in value slightly.
The pace of development of the binance crypto platform is simply impressive. The project occupies more and more new niches in the digital market. Therefore, many investors began to pay attention to binance coins.(Binance development pace)