What Is Binance Coin?
Binance Coin is the in-house coin for the Binance cryptocurrency exchange. The Binance digital currency was launched in July 2017 and funded the development of the Binance exchange whose launch followed not long after.
Using the symbol BNB, Binance Coin powers the Binance cryptocurrency exchange, helping to make it a sustainable platform.
As the in-house digital currency, the main purpose of Binance Coin is as a means to pay for transaction fees on the exchange, including withdrawal and trading fees.
Binance Coin launched on the Ethereum blockchain, before expanding and transfering to their own decentralised exchange platform.
To incentivise the use of Binance Coin, those who used their digital currency to pay fees on the Binance exchange were offered a 50% discount in the first year. This discount would be be cut in half every year thereafter before being completely removed after year five.
A total of 200 million Binance coins would be minted, of which the company aimed to buy back 50% as profits permitted, coins they will burn off to limit supply and help preserve value as the discount scheme reduced.
How Does Binance Coin Work?
There is no mining of Binance Coins, with the 200 million coins pre-mined for the initial coin offering in 2017.
The coins can be traded for other cryptocurrencies over the Binance Exchange. Fiat currencies were not initially accepted for Binance Coins on the exchange, but this has since been rectified.
The Binance Cryptocurrency Exchange provides its own digital wallet facility for users to store Binance Coins, although as the coin has developed more wallet options from other sources have become available.
Despite not being launched too long ago, the Binance Cryptocurrency Exchange has become one of the most popular exchanges. Following suit Binance Coin, as the host coin offering discounts on fees, became one of the best performing digital currencies during the early part of 2019.
With Binance Coin exchange users can trade in over 150 cryptocurrencies. The coin also has a list of trading pairs to select from, showing pairs of coins for which Binance provides an exchange rate to help meet user specific requirements.
What Are the Use Cases for Binance Coin?
The primary uses for Binance Coin still center around the Binance cryptocurrency exchange, providing a way to collect revenue for the platform.
The discount scheme on fees is still in place, while Binance Coin holders also have access to further offers and services on the platform such as token sales.
However, Binance Coin can still be used as a peer-to-peer method of processing transactions for making payments or sending monetary values.
Binance Coin is acknowledged for its reliability and this is a prime reason why increasing numbers of traders are looking at ways to accept Binance coin as payment.
Traders looking to accept Binance Coin can use established payment processing businesses such as B2BInPay to provide the gateway.
Two principal areas where Binance Coin has already made inroads are within the travel and hospitality sectors where it is accepted as payment by multiple service providers.