Binance Coin (BNB) is a cryptocurrency issued by the Binance exchange – the largest cryptocurrency exchange by trading volume. The BNB protocol has a strict maximum of 200 million tokens. Unlike Bitcoin and Ethereum, Binance uses one fifth of its quarterly profits, to repurchase and permanently retire (”burn”) BNB coins held in the exchange’s treasury.

BNB was originally created as a utility token for discounted trading fees, but its modes of implementation have since promulgated to numerous applications, including payments for transaction fees , entertainment, travel bookings, online services, and financial services. This has ensued as a result of Binance launching the Binance Smart Chain for the development of decentralized apps. This dual-chain architecture has revolutionized how the Binance network processes transactions and substantially improved its scalability following the implementation.

The transaction fees of the BNB network are notably lower than that of BTC and ETH, overcoming the primary limitations of the two largest cryptocurrencies in the EC10 bundle. The primary advantage of BNB is that it is underpinned by the world’s largest crypto exchange, granting it a powerful intermediary capability between cryptocurrencies. The Binance exchange itself, advocates measuring the value of crypto assets against BNB, instead of against the USD, for example. As such, the Binance platform has accommodated up to 1.4 million transactions per second using BNB as a medium of exchange.