- The figure is higher than earlier expected
- BNB is used for paying transaction fees
- The company wants to leverage its current 7th position
The Binance exchange management has said the Binance Coin (BNB) has at least 83 different use cases. The new figure for applications is higher than the at least 55 legitimate cases the exchange operator had identified for the utility token in March 2019.
Growth Attributed to Launch of Binance Chain
The world’s leading cryptocurrency exchange in terms of trade volume announced in an official blog post on May 29, 2019, that most of the growth in BNB use cases could be attributed to the recent launch of Binance Chain. The exchange added that some 24 projects had publicly declared their intentions to launch tokens in the Binance Chain, the firm’s high-performance blockchain that went live in April 2019. About its growing repertoire of use cases, Binance stated:
“Since the last time we enumerated the use cases for BNB, we have been in constant communication with various projects that are interested in working with us. We want to leverage BNB’s current No. 7 rank to find more use cases for our native token, for the benefit of Binancians everywhere. Here are some projects and solutions where you can now use, store, or spend BNB.”
Use, Store, Spend BNB
According to the Malta-based exchange operator, the increase in BNB use cases results from its utility token being frequently used since all the transactions involving the Binance Chain use BNB to pay fees.
The firm’s blog also surmised that the more such projects use Binance Chain and more people use the BNB token on the blockchain, the more it will end up being used. Calling for “Use, Store, Spend BNB,” the blog post said a relatively large number of new crypto projects are now running on Binance Chain, which has resulted in more ways to “use, store, or spend BNB.”
Binance CEO Changpeng Zhao (CZ) said last month that the company’s blockchain Binance Chain was not in competition with Ethereum. Even though several Ethereum-based projects were already considering migrating to Binance Chain, CZ was explicit in stating that the exchange’s blockchain network not be considered an “Ethereum Killer.” A case in mind is online entertainment-related projects like Machi X and PlayGame that have seen migrated to Binance Chain. When he spoke about plans to develop Binance Chain in March 2018, CZ had stated:
“As a public blockchain, Binance Chain will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets. Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be upgraded to exist on its own blockchain MainNet, becoming a native coin.”