In 2017, The Binance crypto exchange network was launched to provide crypto brokerage services. Binance launched Binance coin to help support the entire centralized exchange. Changpeng Zhao is the founder of the Binance coin and the Binance network.
Generally, BNB is the coin that helps to control all activities in the entire Binance network, including the exchange, staking, and the newly introduced smart chain.
The number of coins circulating is over 170 million, and the coin is ranked third in Coinmarketcap ranking. Accordingly, the maximum number of BNB to be created is 200 million.
This guide will analyze the entire Binance coin, its services, security, trading fee, uses, and insight into whether it’s a good investment alternative.
Where Can You Buy Binance Coin?
Primarily, the best place to buy Binance coins is from its host platform, the Binance exchange. In Binance, there are many trading pairs involving the BNB currency, including fiat and crypto-related pairs.
Accordingly, BNB was listed in the Coinbase crypto trading platform, making Coinbase another alternative for buying the BNB coin.
Binance Coin Blockchain Backing
Binance coin was introduced in the cryptocurrency market as an ERC-20 token leveraging the Ethereum network. However, after the introduction of the Binance blockchain, this coin migrated to the new chain. The introduction of this new chain increased BNB’s trading activity and assured investors of a reliable Binance future.
Among the key features of the Binance blockchain include;
- BNB Scalability- The Binance blockchain uses a consensus system dubbed Tendermint Byzantine Fault-tolerant. This mechanism is almost similar to POW, where miners have to complete some work before getting coins. However, the Tendemint BFT introduces more scalability, speed, and user-friendliness.
- BNB Speed- Accordingly, with BFT, there are privacy and high-speed transactions. For instance, the platform hosting it can complete about 1.4 million transactions every second. The most recent information shows that it can take between 30 and 60 minutes to complete transactions.
Since introducing the Binance smart chain, there are speculations that BNB will migrate to the Binance Smart chain. However, the technology supporting it now is top-notch therefore making Binance coin highly dependable.
Binance Coin Value
The value of the BNB coin has been increasing since its launch in 2017. At the time of writing, this coin price $656, which is almost twice its value a few months ago. Moreover, the coin’s value surge has made the Binance network market cap hit $100 billion, beating the likes of XRP and Cardano.
Even more recently, BNB listing plans in the Coinbase exchange led to a surge in the coin’s value.
The value of the BNB coin has also been increasing vastly because of the token burnings conducted regularly. Recently, Binance conducted their token burn, destroying 1 million coins valued at $595 million. Ever since the announcement to date, the value of BNB has soared fast.
Binance Coin Fees
The fees that help in running the Binance coin are not extreme. For instance, if you look at the Binance exchange, the average transaction fee involving Binance coin transactions is 0.001%. This percentage is equal to around $0.02.
The BNB Use Cases
BNB’s primary objective at inception was to help in fee payment in the Binance exchange. Therefore, persons transacting in the Binance exchange since 2017 had the alternative payment option.
Second, Binance instituted the Binance dex in 2019, and the BNB coin was the main currency operating the platform.
The third main use case of the Binance coin is powering the recently released crypto launchpad platform. Binance coin is majorly used by upcoming projects when they are raising funds in ICO’s. This launchpad use case has contributed to the even further growth in value of the coin by raising the coin’s demand.
The Binance Coin Poor Security Protocol
Binance network has instituted vast security protocols to help protect the entire network and make the coin reliable in the crypto industry. The security protocols aim to protect the platform from any possible hacking threats in the crypto market.
However, even with vast KYC, 2FA, Email address verifications, and many more, Binance has faced many security issues. For instance, on May 7th, 2019, hackers stole around 7k bitcoins, worth around $40 million. Therefore, security, although enhanced, is still lacking. Later, in August, hackers stole the KYC data of about 10k people.
Additionally, although the largest crypto broker, Binance has a very high potential of getting banned. It has poor resistance to censorship, and its reputation was highly damaged when China began censoring crypto.
Security is lacking in the Binance coin; thus, the developers should introduce the best strategy to protect this high-value coin. However, the platform is still considered a very safe crypto exchange network and, as such, trusted by millions.
Binance Inc, the mother company of BNB, has made various partnerships, including crypto wallets like EQUAL. Moreover, the Binance platform partners with Chiliz, a sports and entertainment network.
Accordingly, the Binance platform partnered with Brave browser to help implant crypto-assets into the browser. Other recent strategic partnerships include CapBridge, Bondly, and many more.
After looking into the features making up the Binance coin, it’s clear that BNB is a good investment option. The recent value surge and the increasing demand for the coin make it a good investment option.
Moreover, the host platform, Binance chain, provides the BFT consensus mechanism to ensure that mining BNB is easy for the user. The coin has vast use cases like fee payment and launchpad requirements; thus, its future is guaranteed.
However, BNB’s host platform, the Binance exchange, does not have quality security mechanisms. As such, it has been easy for hackers to get away with funds. If they work on security, Binance coin can join the competition against the top two currencies, Bitcoin and Ethereum.