UNDERSTANDING BINANCE CHAIN || 10% beneficiary to tron-fan-club

INTRODUCTION

Hello friends, I will like to explain what binance and thereafter I will explain what BNB coin is. Binanca is of the biggest crypto exchange platform with many interesting feature and the also have the own blockchain. So, lets dive into the discussion of today.

WHAT IS BINANCE?

Finance is one of the biggest crypto exchanges platform that competing other big crypto exchange platforms such as Coinbase, FTX, and Gemini. Binance created their blockchain with fast transaction speed and their blockchain coin is called BNB. Thereafter, they created a binance smart contract because they saw the Ethereum blockchain booming so they created the binance smart chain to make people use their blockchain. What smart contract does is allow developers to develop an application and token on a blockchain. All decentralized application uses smart contract technology.

The Binance Chain and binance smart contracts are different. New users can be confused and they can accidentally transfer Binance Chain into Binance Smart Chain. They created the binance smart contract two years after they the created Binance chain. What binance did was to forked Ethereum code to create a binance smart chain but they only made a few changes to make it faster and cheaper.

CONSENSUS MODEL

The binance smart chain uses delegated Proof of Stake and that means that the top 2I people that have the highest BNB stake will be able to validate a transaction.

BSC IS CHEAPER

BTC and Ethereum are very expensive but Binance Smart Chain transaction is very cheap. Some transactions on the Ethereum blockchain can reach $50 per transaction sometime if the blockchain is congested. The binance smart chain is very easy for developers to create a token and this has made many scam tokens to be created. Speaking on people creating scam token and a lot of scammers has created tokens and gotten people to but because it is very used to swap one token to another, scammers have taken advantage of it. Some blockchain has copy binance smart chains such as Polygon blockchain.

TOKENOMICS

In the year 2017, there was about 200 million BNB at the time of launch and 100 million BND was mint by investors at the price of $0.15 per BNB. During Binance ICO, they reach about 15 million dollars. Those investors that bought the coin during the ICO at $0.15 will make a lot of money when BNB reached its all-time high of $672 in 2021. 40% of the BNB was given to the founding team and only about 20% of the BNB per year and the remaining 10% was given to the investor. Binance comes up with a strategy to choke the supply by buying the token every 3 months and burning them. Binance plans to continue by the coin and burning them until the total supply reduces to 100 million.

CONCLUSION

You can use the BNB coin to save transaction fees because it transaction fee is very low. You can also use BNB on some marketplace like Canva to pay for the monthly subscription. There are some traveling benefits you can get from holding BNB. You must know that Binance has binance.com and binance.us.

THANK YOU FOR READING