The digital currency BNB is the cryptocurrency issued by the trading platform Binance.
The BNB cryptocurrency was initially run on the Ethereum blockchain with the ERC 20 standard but has since become the original coin of the Binance blockchain.
Set the total supply of BNB to 200 million BNB.
As of April 2021, Binance trading platform is the largest cryptocurrency trading platform in the world, supporting more than 1.4 million transactions per second.
History of the digital currency BNB:
The digital currency BNB was launched during the Initial Coin Offering (ICO) in July 2017.
Offer 10%, or 20 million BNB to angel investors, 40%, or 80 million, to the founding team, and the remaining 50%, or 100 million, to various participants through the ICO process.
Nearly half of the funds raised during the ICO process were intended to be used for the promotion and marketing of the Binance brand, while about a third was used to build the Binance platform and perform necessary upgrades on the Binance ecosystem.
BNB was initially based on the Ethereum network but is now the original currency of Binance's blockchain.
Burning the digital currency BNB:
Although 100 million BNB was initially offered in an ICO, the current total supply is even lower than that number.
Every quarter, Binance uses one-fifth of its profits to buy back Binance Coins and permanently destroy or “burn” them.
Binance has regularly carried out these incendiary events.
The most recent BNB burn came on April 15, 2021, when Binance burned a total of 1,099,888 BNB, equivalent to $595,314,380.
This is Binance's 15th quarterly BNB burn and the largest ever in US dollar terms.
The total supply of BNB decreased from 170,532,825 to 169,432,937.
As for the definition of what the burning process is, it is as follows:
Coin burning is the process of permanently removing coins from circulation, reducing the total supply.
In order to explain how this is achieved and how it works, we will use the BNB topic of our article as an example.
When BNB was still a part of the Ethereum network, Binance periodically conducted several burns through the use of a smart contract function known as the copy function.
BNB burning events are scheduled to take place every three months until the 100,000,000 BNB is finally destroyed, which is 50% of the total BNB ever issued (20,000,000 BNB).
However, the amount of BNB to be burned depends on the number of trades made in the Binance trading platform during the 3-month period.
So after every quarter, Binance burns BNB according to the total trading volume.
However, it seems that a large number of people still fail to understand how to carry out cryptocurrency burns.
How does burning cryptocurrency work?
Basically, the cryptocurrency burning event occurs in the following order:
The coin holder calls the burning function, stating that they want to burn a certain amount of cryptocurrency.
The contract will then verify that the person has digital coins in their wallet and that the number of coins listed is valid.
Only positive numbers work.
If a person does not have enough cryptocurrency, or if the given number is invalid (for example, 0 or -5), the copy function will not be performed.
If they have enough, the cryptocurrency will be subtracted from that wallet.
The total supply of this coin will then be updated, and the digital coins will be burned.
If you perform the burn function to burn your digital coins, they will be destroyed forever.
Since it is impossible to recover cryptocurrencies after burning them.
BNB digital currency uses:
Binance was created as a digital currency dedicated to paying low trading fees on Binance in 2017.
But since then, its uses have expanded to include many applications on a large number of platforms.
It is used to pay transaction fees on Binance.com, Binance DEX, and Binance Chain.
It can also be used for payments (at places like Crypto.com, Monetha, HTC), to book accommodations while traveling (at sites like TravelbyBit, Trip.io and Travala.com), and for entertainment purposes (virtual gifts, card packages, sweepstakes ) and to pay for online services (BitTorrent, Canva, Storm) and even for financial purposes (possibility of getting a loan from ETHLend or investing in Moeda).
The BNB cryptocurrency can also be used to invest in some ICOs listed through Binance's launchpad.
The Binance platform regularly introduces a new listing of cryptocurrencies in the IPO, and the use of Binance provides a seamless marketplace for trading in a variety of established and new digital currencies.
The BNB cryptocurrency has gained support from other partnerships that have helped spread its use.
This includes a partnership with Asia's leading live video streaming platform Uplive, which sells virtual gifts in exchange for BNB to Uplive's 20 million user base.
BNB digital currency is also supported through the platform, mobile application, and VISA debit card.
At the time of writing this article, the market capitalization of BNB is around $58,276,993,118.
Smart Binance Blockchain:
As of April 8, 2021, transactions on the Binance Smart Blockchain have reached 4.9 million daily transactions; Three times what is done on Ethereum, which is the highest ever in daily transactions.
Frequently asked questions about BNB digital currency:
What is BNB digital currency?
It is a cryptocurrency primarily used to pay transaction and trading fees on the Binance platform.
What are the most important uses of BNB digital currency?
In addition to the Binance cryptocurrency exchange, the BNB digital currency has many uses, including the abilityOn:
Make credit card payments
Pay for travel arrangements (on select websites).
Buy virtual gifts
Providing loans and transfers
Donate to charities
What does transferring small amounts to BNB mean?
In the cryptocurrency world, dust refers to any amount of digital currency or very small tokens that are often overlooked.
It's basically the small fractions left over from the trades.
The Binance platform allows traders to convert dust into BNB.
What is BNB Market?
The BNB market simply refers to the place where BNB coins are bought and sold.
Most BNB purchases are made in the secondary markets.
Traders can buy and sell BNB on Binance.com as well as other crypto platforms.
Is the Binance platform banned in the US?
On May 13, 2021, Bloomberg reported that Binance Holdings is under investigation by the Department of Justice and the Internal Revenue Service.
According to the report, money laundering and tax investigators have questioned individuals who do business with Binance.
Binance spokeswoman Jessica Jung said:
We take our legal obligations seriously and engage with regulators and law enforcement in a collaborative manner.
We have worked hard to build a robust compliance program that includes anti-money laundering principles and tools that financial institutions use to detect and address suspicious activity.