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Good day friends, I am once again participating in the crypto academy season 2 this time. I am writing Altcoins – Part1 "Looking beyond the Bitcoin" by @yohan2on.

I am writing on Binance coin (BNB)

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it was founded by Changpeng, and was meant to provide solutions to various problems which he found evident in other trading platforms. in fact BNB is a Utility Token.

The ICO of BNB was done on July 2017 raising aout $15m. The funds raised was employed into use in 3 different ways.

1. some part (50%) of it were used to create and build the binance exchange trading platform and conduct various upgrades before it got to the stage they are now.
2. some other portions (40%) of the fund raised were expended on marketing and branding of the Binance product.
3. The remaining part(10%) was kept in the reserve as an emergency fund.

Binance coin was originally an ERc-20 token before it was finally moved to Binance chain after its creation. it is one of the blockchains that does not support smart contracts like Ethereum does.

Binance coin was created to operate as a native crypto asset, which would offer another means to pay for fees that are being charged to traders.

Traders are being charged in BNB when they move their cryptos from Binance exchange platform to a private wallet.

Token policy

BNB total supply is at 200 million tokens, 100 million of this was allocated or released during the initial coin offering, while the remaining are left for the team that built the coin and prime investors. to further ensure the price stability of this coin, the company has plans put in place to burn about 100 million of its token over a period of time.

Method of Transaction processing

It makes use of validator nodes vote to process itys transactions, which is part of its BFT consensus mechanism. Bnb has three different types of nodes
a. The validator nodes which validadtes transaction
b. Witness nodes that witness the process and broadcast transactions
c. Accelerator nodes that are owned by firms and speeds up the process.

[reference](coindesk.com/crypto/binance coin)

The advantages of Binance coin

1. Binance coin is used to facilitate various utilities, which also include trading new token. it is used as a payment method across various services which include but not limited to online purchases, travel, transfers, etc.
2. BNB offers discount on the trading fees, which is being reduced by 50% each year. This draws users and supporters alike and an inducement for daily traders
3. the burning policy of binance coin will lead to increase in its price, enabling price speculation, growth and stability of the coin.
4. Binance coin has been supported in the form of partnerships, have grown to be very popular and one of the largest global crypto exchange. It has taken a giant stride toward security, thereby increasing the credibility of the token and its adoption as well.
5. Binance offers low transaction fees for all traders, and have very fast transaction processing time. it also gives gifts and prizes to its traders regularly.

Disadvantages

1. The stability of the Binance coin is dependent on the exchange reputation. this makes the coin to be highly reliant and cannot move on its own.
2. Binance does not offer smart contracts, making it a centralized exchanne which would also affect the its coin. lets re member that decentralization is very essential for business and investors.
3. Regular security breach in the Binance platform will be a major inhabiting factor in the growth of the coin.

reference

Mining Binance Coin

The binance coin block is mined in every Application-specific integrated circuit(ASIC). the block is then divided between all the miners. the time it takes to mine 1 block of BNB is dependent on the hash rate, which is a function of how powerful your mining setup is. But the best form of mining BNB is by using ASIC.

Personal Experience

I did not know much about Binance coin until the recent regulation in my country banning crypto transactions. since then I have engaged in trading BNB/Eth, and sold it off later. If i had known the price move would be like this, I would have HODL.
however, I am looking forward to Bag more, since the price speculation may hit $1800 before the end of 2021.

Conclusion

Binance coin is a coin for the future with very high potentials. It can get to as much as $1800 before the end of 2021. However, let us always have in mind that like every other crypto, there are associated risk. so we also need to trade with caution while investing in it.

Thanks for going thru my post.