Review on Binance Coin by Kenan Chalabi

Binance Coin (BNB) is Binance Chain's native cryptocurrency token, which performs a wide range of transaction functions on the network. The global use of Binance Coin reflects the popularity of the Binance Exchange, which has become one of the largest cryptocurrency exchanges in the world by trading volume.

Binance was established in China, but moved to Japan in late 2017 due to the strict ban on cryptocurrency transactions by the Chinese government. Binance subsequently moved its headquarters to Malta in 2018 in response to increased regulation of cryptocurrencies in East Asia. Due to multiple headquarters relocations, Binance's goal is to retain the decentralized advantages of cryptocurrency and avoid some regulatory challenges that plague other trading platforms.

To maintain its scarcity and value, Binance Coin is "burned" every quarter, in which 20% of Binance's profits are used to buy back BNB tokens; these tokens are subsequently destroyed. Binance will continue to burn regularly until 100 million tokens are destroyed (50% of the total BNB 200 million).

Binance Coin was created to pay the Binance Exchange transaction fees, but its value and functions have been extended beyond the platform to power the developing Binance ecosystem. In practice, this means that BNB can be used for on-chain, third-party exchanges, real-world payments, as well as a number of R&D projects and the recently launched Binance Smart Chain (BSC).

Currently, BNB can be used in the following Binance platform environment:

● Transaction fees: Initial use of BNB is to pay discounted transaction fees on the Binance blockchain and use ETH to pay fees on the Binance blockchain. Ethereum blocks. .

● Transaction discount: When online, users who use BNB to pay transaction fees can enjoy a 50% discount. The discount is currently set at 25%.

● Account level: Users who have a large amount of BNB and have traded for at least 30 days can access certain "VIP" levels in the Binance ecosystem, including additional discounts on transaction fees.

● Cryptocurrency trading: BNB is a circulated token that can be exchanged for other cryptocurrency at the market value of Binance DEX and third-party exchanges.

● Non-tradable conversion: Users who have a certain amount of non-tradable cryptocurrency (called "dust") in their Binance account can convert these currencies into BNB.

● IEO lottery: Binance arranges the initial exchange product (IEO) as a lottery, and users can receive the lottery based on the number of BNB tokens they hold. Each winning lottery ticket will reward holders with a certain amount of BNB tokens.

● Governance: BNB holders have the right to govern the BNB blockchain based on the amount of BNB they hold.

Let's talk about some Binance coin payment options:

BNB can also be used in off-chain payment environments and is accepted by various markets. In practice, merchants around the world accept BNB as a payment method for travel services, including hotel accommodation and airline tickets, entertainment services such as music and games, and financial services such as loans and investment products.

Binance Smart Chain: Binance Smart Chain (BSC) was launched in September 2020 as a blockchain parallel to the original Binance Chain. BSC is an Ethereum Virtual Machine (EVM) compatible smart contract platform. This means that Ethereum tools, applications, and other infrastructure can be ported and used in BSC. Binance Chain and BSC are interoperable because they use similar architectures. Therefore, assets can be transferred between the two chains.

About its consensus protocols:

BSC implements a variant of Proof of Stake called Proof of Staked Authority (PoSA). The PoSA in the BSC consists of 21 validators. This is a deliberate design choice that prioritizes scalability over decentralization. In contrast, other networks like Bitcoin and Ethereum prioritize decentralization and are made up of thousands of active nodes that have an impact on scalability.

Binance's stated vision is to "increase currency freedom" through BNB product development, as the "foundation" of ecosystem development. To this end, Binance has committed to an open platform program that will allow companies to use the platform as infrastructure for their cryptocurrency projects. Examples of open platform projects include the Binance Broker Program, which provides companies with order reconciliation, account management and settlement systems, and Binance P2P - a peer-to-peer marketplace that is expanding to include a variety of new cryptocurrencies. and facilitate transactions in new global markets.

Binance also runs Binance Labs - a program designed to identify and invest in promising new blockchain entrepreneurs and startups that can benefit and grow the ecosystem.

In 2019, Binance was banned in the United States for regulatory reasons. In response, Binance and other investors opened Binance.US, an independent exchange registered with the US Financial Crime Enforcement Network to comply with all applicable US laws. The American variant is praised for providing a very similar interface and feature set to its global counterparts. However, it is currently banned in seven states. In May 2021, Bloomberg News reported that Binance was investigated by the US Department of Justice and the Internal Revenue Service for money laundering and tax evasion.

UK

In June 2021, Binance was ordered by the UK Financial Conduct Authority to stop all regulated activities in the UK. In January 2021, the FCA began to require companies handling cryptocurrency to register to comply with anti-money laundering rules. Because Binance does not abide by these rules, it will be forced to cease operations in the coming weeks.

Final thoughts: This coin is very useful and usable. The fact it has own wallet is a very big pro for it. It is reliable also. So, dears, you can easily and cozily use this coin but I do not think it is good for investment right now.