Review on Binance Coin by Japheth Ayuba
Binance coin is a major Exchange coin in the crypto market
The Binance Coin BNB is the Native coin of the Binance chain which was first launched as an ERC-20 compliant token on the Ethereum Blockchain but has moved to it's own mainnet. The Binance coin is the native coin of the Binance exchange and so therefore, it's major utility is placed in the exchange. On the exchange Binance coin BNB can be used to reduce trade fees and to participate in launchpool for new tokens coming into the exchange. The coin has other use outside of its exchange as it can also be used for peer-to-peer transaction just like any other cryptocurrency. Another utility of this coin is on its Binance Decentralized Exchange Binance DEX where BNB is used to pay trade fees and withdrawal fees from the exchange.
The initial total supply of the coin was 200 million coins but due to its frequent burning to increase coin value, the total supply stands at around 180 million coins. The coin is not mineable as it's Blockchain uses Byzantine Fault Tolerance (BZT) consensus mechanism. It's supports the creation of tokens on its Blockchain, Binance chain and BNB is used as the gas of the BEP-2 tokens just as Ethereum is used as the gas for ERC-20 tokens. The support for upcoming Decentralized Finance Projects has increased the value of this coin as it is currently traded for $28 as at the time of writing. The coin can be held on many wallets such as Trust Wallet and Atomic wallet. Despite being the exchange coin of Binance, BNB is listed on many major exchanges with good trading volumes and liquidity
Pros
- The Binance coin BNB is an exchange coin used to fuel the Binance exchange as it can be used to reduce trade fees and used to pay withdrawal fees on the Binance Decentralized Exchange
- It's upcoming support for Decentralized Finance Projects has for sometimes now increased the value of this coin in which it is currently traded at $28 a coin
- Can be held on reputable wallets such as Trust Wallet and Atomic wallet and other centralized exchange custodial wallets
- Apart from being used for the Binance exchange, BNB is used for peer-to-peer transaction
- Despite being the native coin of the Binance exchange, this coin is listed on many major exchanges with good liquidity paired to it
Cons
- As the Binance coin uses the Byzantine Fault Tolerance BZT consensus mechanism, it cannot be mined though it can be acquired by validating transaction on the Binance Chain
