BNB Chain is a high-performance blockchain platform developed by Binance, one of the world’s leading cryptocurrency exchanges. BNB, which stands for Build and Build – BNB (formerly known as Binance Coin), is the native cryptocurrency of BNB Beacon Chain (formerly Binance Chain) and BNB Smart Chain (formerly Binance Smart Chain).
BNB was launched through an Initial Coin Offering (ICO) in July 2017 as an ERC-20 token, but it was later migrated to the Binance Chain in April 2019. The total supply of BNB is capped at approximately 186 million. BNB has a deflationary model, in which a portion of the transaction fees on the Binance Chain is used to buy back and burn BNB. The goal of this model is to reduce the total supply of BNB over time, which should theoretically increase its value.
Users can trade or exchange BNB for other cryptocurrencies, such as Bitcoin, Ethereum, etc. BNB is used to pay transaction fees, as well as to participate in various governance mechanisms on the BNB Chain. Users can enjoy discounted transaction fees on Binance exchange, Binance DEX, BNB Beacon Chain, and BNB Smart Chain.
The BNB Chain is secured using a delegated proof-of-stake (DPoS) consensus algorithm. The DPoS consensus algorithm is designed to be more efficient and scalable than other consensus algorithms, such as Proof of Work (PoW) and Proof of Stake (PoS). This is because it requires less computational power to reach consensus, and it allows for faster transaction processing.
In a DPoS system, users can vote for validators (also known as “delegates“) who are responsible for validating transactions and maintaining the network. The validators are chosen by the users through a voting process, and the validators that receive the most votes are selected to produce blocks and validate transactions. The validators are known as “validator nodes,” are responsible for validating transactions and producing blocks. The validator nodes are required to maintain a certain level of “stake” in order to participate in the network.
The BNB Chain is designed to support a wide range of decentralized applications (DApps) and use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and more. One of the key features of the BNB Chain is its high-speed transaction processing capabilities, which allow it to handle thousands of transactions per second.
The BNB Chain is also being used for gaming applications, as it allows developers to create decentralized games that are provably fair and transparent. This is because the rules of the game are encoded into smart contracts, which are transparent and cannot be altered by any single party. The BNB Chain’s fast transaction speeds and low fees make it an attractive option for developers looking to build decentralized games.
Overall, the BNB Chain is a powerful and versatile platform for building decentralized applications and driving the adoption of blockchain technology. Its compatibility with Ethereum, high-speed transaction processing, and strong support from the Binance ecosystem make it a promising option for developers and users looking to build and use DApps.