What is Binance Coin?
Binance Coin is a crypto-coin issued by Binance, and BNB is its emblem. Binance coin runs over the Ethereum blockchain using ERC 20 benchmark, also contains a strict limitation of maximum 200 million BNB tokens.
The Binance coin is used to fuel the operations of on the Binance exchange. It supports multiple utilities around the Binance ecosystem, including paying for trading charges, exchange fees, listing fees, and some other prices on the Binance exchange.
Why is Binance Coin used?
Binance gives you a major rebate when charges are paid in BNB as opposed to in BTC. According to their whitepaper,
You can use BNB to pay for any fees on our platform, including but not limited to:
● Exchange fees
● Withdraw fees
● Listing fees
● Any other fee
When you use BNB to pay for fees, you will receive a significant discount:
In the first year, there’s a 50% markdown on all fees, in the next year there’s a 25% rebate, at the next year there’s a 12.5% markdown, at the 4th year that’s at 6.75%, and by the 5th year onwards there’s not any markdown. This system is used as a motivating force for customers to buy BNB and trade using Binance.
There are two benefits to this: The trading expenses are compensated for in BNB, rather than in the coin which you’re exchanging, which means you don’t have to leave the clean there (on the grounds that binance does not trade decimals).
According to the Binance coin whitepaper, Binance intends to utilize 20% of their earnings each quarter to buyback and burn off BNB, until 50% of their entire BNB distribution (100 million) is burnt.
The BNB token permit you to get discounts for services offered by the Binance platform. At the moment, Binance is a cryptocurrency exchange, which later on will develop into a decentralized market of blockchain assets. BNB also provides users access to complex features to be utilized on the new decentralized market.
More about Binance and Binance Coin
Since the BNB token is made only as an electronic tool which offers a discount for customers on the Binance exchange, it can be traded only on the Binance platform. At the moment, the cryptocurrency BNB can be traded for other 40 cryptocurrencies on the Binance exchange.
The Binance exchange platform presents all the important features necessary for a big exchange. It has all the major crypto trading pairs, multiple languages, multiple device platforms, an intuitive user interface, and more importantly, exceptionally large throughput from its arrangement fitting engine of around 1,400,000 orders each second.
Binance doesn’t offer fiat trades (eg. US dollars) into the cryptocurrency market but instead focuses only on crypto-to-crypto. It highlights safety, speed, and customer service above all else.
Binance Coin Team
The team is led by Changpeng Zhao, and it has experience in both wall-street and crypto finance. The members of the team have a track record of successful startups.
Binance Technology
Binance can process 1,400,000 orders per second, which makes it one of the fastest exchange in the market.
What are the Features of Binance?
- Speed
Binance makes a difference in the execution speed of the transactions. The engine underlying Binance, in fact, is already powering 30+ other exchanges in Asia.
- Team & Partnerships
The CEO of Binance is Changpeng Zhao, who has a profound background in trading, finance, and blockchain technology. He’s also the creator of BijieTech (the firm behind the underlying execution engine) in addition to a co-founder of OKCoin (among the biggest Bitcoin exchanges).
The CMO is Yi He, among the primary cryptocurrency pros in China and a co-founder of all OKCoin. They have got a close partnership with the most promising blockchain protocol from China, NEO smart market, led by Da Hongfei (in actuality, Binance delivers fee-free withdrawal of NEO and GAS).
- Binance Coin (BNB)
The users who own BNB will get reductions on all trading charges (50%for the initial year).
Additionally, all ICOs provided on Binance are going to have a reduction for using BNB to spend, and also the long-term guarantee is possessing a bet of a future entirely decentralized market that rumours have is currently in the works. There’ll be organic deflation as each quarter, Binance will utilize 20% of earnings to purchase back BNB and ruin them, therefore steadily driving the cost (up to 50 % of BNB in flow ).
What are the cons of using Binance?
- Limited Coins
In contrast to other exchange platforms, Binance provides a relatively limited choice of coins to exchange. This list may continue to enlarge (OAX, DNT, MCO, ICN) nevertheless and won’t be a con for extended.
In Sep 2017, Binance included a Community Coin a Month program in which the coin having the greatest community votes will be recorded.
- Limited Documentation
Binance is natively Chinese; this means that by default, documentation will start in Chinese and suffer from translation differences.
- No fiat currency exchange
You can only use crypto for trading on Binance, as fiat exchanges have much more regulatory scrutiny.