Binance Smart Chain: Binance Coin BNB

Hello and welcome to the Exodus channel, your
home for the best crypto videos. Hit those like and subscribe buttons and we’ll
keep the videos coming. The Binance Coin or BNB Coin is the native
token of the massive Binance ecosystem – which comprises of the Binance Centralized Exchange
or CEX, a Decentralized Exchange or DEX, Binance chain, Binance Smart chain and a host of financial
services such as crypto loans, liquidity pool mining, and more. So if this sounds like a lot, don’t worry,
we’re gonna break it all down over the next few minutes. Let’s lift the curtains for a peek. Binance was launched in July 2017 by Chang
Peng Zhao, otherwise known as CZ, who has previous experience developing the Tokyo Stock
Exchange, Blockchain.info and serving as the Chief Technology Officer of OKCoin. In April 2019, Binance decided to launch its
own blockchain, the Binance Chain, with the goal of enabling fast and decentralized, or
permissionless, trading.

The Binance DEX was also born and is the Binance
Chain’s largest decentralized application or DApp to date. But, despite the Binance Chain being built
for speed and instant finality, it lacks extra programmability, flexibility and functionality,
particularly smart contract functionality and compatibility with Ethereum’s universe
of tools and decentralized applications. In April 2020, Binance decided to give users
the best of both worlds by creating the Binance Smart Chain and setting up a powerful parallel,
dual-chain structure. The Binance Chain and the Binance Smart Chain
are two separate blockchains that run side by side to offer different features and functionalities. Users can take advantage of the fast transfers
and trading of the Binance Chain, while harnessing the extendable Smart Contract programming
functionalities of the Binance Smart Chain, all within the same user interface and tooling
environment. As a parallel chain, the Binance Smart Chain
not only introduces Smart Contract programming functionality, it is also an Ethereum Virtual
Machine or EVM compatible chain.

This means that developers can deploy DApps
built for Ethereum, on the Binance Smart Chain with minimal effort. Some DeFi DApps already built on the Binance
Smart Chain include PancakeSwap, BurgerSwap and BakerySwap. With this dual parallel-chain system, users
can enjoy added functionality and cross-chain interoperability without compromising speed
and performance. Digital assets between both chains like BEP-2
and BEP-8 tokens from the Binance Chain are easily swapped with the Binance Smart Chain’s
BEP-20 tokens. Both blockchains also run independently of
each other, so if either blockchain should fail for a period of time, the other one will
be still running. Now, what about the Binance coin AKA the BNB
token? It the native token of both blockchains and
serves multiple uses.

Firstly, BNB is used to pay transaction fees
on Binance Chain and Binance DEX. Traders who pay with the BNB token are able
to enjoy discounts off their transaction fees on the Binance exchanges. Secondly, BNB is used as “gas” with developers
paying the token to deploy Smart Contracts on the Binance Smart Chain. BNB is also used to stake, help validate and
maintain the Binance Smart Chain, with stakers receiving rewards.

All Binance Smart Chain validators are rewarded
with transaction gas fees in BNB. Finally, the BNB coin may also be used as
a currency for owners to pay their bills, purchase smartphones or book flights, and
accommodate a wide range of participating partners. The BNB coin is deflationary because it is
burned every quarter according to a schedule. This is done to permanently remove coins from
circulation, reduce total supply and increase its value. At every quarter, Binance will use 20% of
its total exchange profits to buy back and burn BNB coins until 50% of the total supply—or
100 million BNB—is depleted. Are you a fan of Binance? What are your thoughts on the BNB token? Let us know in the comments and if this video
helped you understand the Binance ecosystem and Binance coin BNB, give it a thumbs up
and subscribe to the channel for more crypto videos from Exodus..

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