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What is BNB?
Introduction
BNB, initially known as Binance Coin, is a cryptocurrency developed by Binance, one of the world’s leading cryptocurrency exchanges.
Originally created in 2017 as part of an Initial Coin Offering (ICO), BNB has evolved from being merely a token to pay for trading fees on the Binance platform to a multifaceted utility token with various applications.
Technical Description
BNB was initially an ERC-20 token on the Ethereum blockchain but later transitioned to Binance’s own blockchain, Binance Chain, and subsequently to Binance Smart Chain (BSC).
BSC operates on a dual-chain architecture, allowing users to build decentralized applications and digital assets on one blockchain and exchange them on Binance’s trading platform on the other.
It uses a consensus mechanism called Proof of Staked Authority (PoSA), which is a blend of Proof of Stake (PoS) and Proof of Authority (PoA).
This mechanism ensures high transaction speed and low fees.
Advantages
Reduced Transaction Fees: BNB offers discounted transaction fees on Binance exchanges, making it attractive for frequent traders.
- Versatility: BNB is used in various applications, including token sales (via Binance…
