Learn about BNB token and BNB Smart Chain, the token and smart contract platform supported by Binance cryptocurrency exchange.
Summary
BNB Smart Chain is an Ethereum Virtual Machine (EVM)-compatible blockchain platform designed for general-purpose smart contract execution. As a Layer 1 (L1) blockchain, it is part of the BNB Chain ecosystem and is supported by Binance. It is renowned for its fast transaction speeds and low costs.
The BNB token serves as the native cryptocurrency of BNB Smart Chain, originally launched as Binance Coin before being rebranded to "Build and Build" in 2022. Beyond functioning as a gas token for transactions, BNB grants holders governance rights within the ecosystem.
BNB is also a tradable cryptocurrency, accessible via wallets like Bitcoin.com Wallet, where users can buy, sell, and manage their holdings. Advanced users can interact with decentralized applications (DApps) using WalletConnect.
What Is BNB Token?
BNB is the native token of the BNB Chain ecosystem, which includes:
- BNB Smart Chain (BSC) – For smart contract execution.
- BNB Beacon Chain – For governance and staking.
Key Utilities of BNB:
- Pays transaction fees on BSC.
- Enables governance participation.
- Offers trading fee discounts on Binance exchange.
- Powers Binance ecosystem services (e.g., Binance DEX, Launchpad).
👉 Discover how BNB fuels DeFi innovations
How Does BNB Smart Chain Work?
BNB Smart Chain uses a Proof of Staked Authority (PoSA) consensus mechanism, blending Delegated Proof of Stake (DPoS) and Proof of Authority (PoA). Key features:
| Feature | Description |
|---|---|
| Validators | Selected via staking; ensure fast block times (3 seconds). |
| EVM Compatibility | Supports Ethereum-like smart contracts and cross-chain interactions. |
| No BNB Inflation | Validators earn fees instead of block rewards. |
History of BNB Smart Chain and BNB
- 2017: Binance and BNB token launched (initially ERC-20).
- 2019: Migrated to Binance Chain.
- 2020: Binance Smart Chain (BSC) launched, gaining popularity due to low fees and EVM compatibility.
- 2022: Rebranded to BNB Smart Chain; expanded into the BNB Chain ecosystem (Beacon Chain, ZkBNB, Greenfield).
How to Use BNB Smart Chain
1. Create a BNB Smart Chain Wallet
- Download a compatible wallet (e.g., Bitcoin.com Wallet).
- Generate a secure seed phrase and store it offline.
2. Buy/Send BNB
- Purchase BNB on exchanges like Binance or via Bitcoin.com Wallet.
- Send BNB to your wallet address for on-chain transactions.
3. Interact with DApps
- Connect your wallet using WalletConnect.
- Swap tokens, provide liquidity, or stake BNB.
👉 Explore BNB Smart Chain’s top DApps
Bridging Assets Between BNB Smart Chain and Ethereum
Use Celer cBridge to transfer assets:
- Select the token and networks (Ethereum ↔ BSC).
- Confirm the bridge transaction (wait times vary).
- Use bridged assets for low-cost DeFi activities.
FAQ
Q: Is BNB the same as Binance Coin?
A: Yes, BNB was formerly called Binance Coin before its 2022 rebranding.
Q: What are BNB’s main use cases?
A: Paying transaction fees, trading discounts, governance, and staking.
Q: Can I stake BNB?
A: Yes, via BNB Beacon Chain or DeFi platforms.
Q: How do I reduce BSC transaction fees?
A: Hold BNB for fee discounts on Binance or optimize transaction times.
Final Thoughts
BNB Smart Chain offers a scalable, low-cost alternative to Ethereum, while BNB token provides multifaceted utility. Whether you’re trading, governing, or building DeFi applications, BNB Chain’s ecosystem caters to diverse crypto needs.
For secure BNB management:
👉 Download Bitcoin.com Wallet