BNB BNB Price

BNB Chain Tech Roadmap

History of Binance

Changpeng Zhao, the founder of Binance, a programmer from China, started his cryptocurrency activities back in 2014 with an unsuccessful investment in bitcoin. Nevertheless, four years later, Changpeng Zhao appeared on the cover of Forbes, ranking third on the list of people who became cryptocurrency billionaires. And in 2022, Changpeng Zhao became the richest man in the cryptocurrency world according to Bloomberg. His fortune is valued around $96 billion.

In July 2017, he organized an Initial coin offering, which resulted in the sale of 100 million coins. After the ICO ended, it turned out that a total of $15 million in investments had been raised. The new crypto exchange was named after the merging of the two English words Binary and Finance. As a result, Binance Coin gave Changpeng Zhao the opportunity to create a highly successful centralized business. In 2018, quarterly profits were already estimated at hundreds of millions of USD.

Regular Coin Burning

Once every three months, Binance exchange removes coins from circulation, during which the exchange spends 20% of its quarterly profit to purchase tokens, after which the developers destroy these tokens without the possibility of their recovery. A total of 100,000,000 tokens will be withdrawn from circulation in such a way.

This is how the exchange administration is dealing with the devaluation of its coins. This method began when the cryptocurrency BNB switched to its own blockchain, Binance Chain. Since then, the creator of the exchange set a goal to decrease the number of issued coins by half, thanks to which the BNB coin is growing in value. As a result, the remaining coins will be used as fuel for the system's vitality in Binance.

Mining BNB

You are not able to mine BNB as a proof-of-work cryptocurrency because the Binance blockchain uses proof-of-stake Byzantine Fault Tolerance (BFT) consensus mechanism.

Approximately 200 million coins have been released in total, most of them distributed among the creators, investors (who invested during the ICO gathering) and project sponsors. There are currently no plans to release new coins, so there is no way to get them other than by purchase.

BNB Evolution

Binance launched 28 fiat channels this year, and as a result, users can buy BNB in 46 fiat currencies using different payment methods, including debit card, credit card and bank transfer. This is a very important stage for the acceptance of the whole crypto industry.

With BNB you can not only book hotels, bars, flights, cafes and restaurants, but also buy things online and even take credit. According to the latest information, BNB currently has more than 200 different uses, and more than 150 cryptocurrencies support BNB around the world.

In addition, third-party exchanges are also adding support for the BNB token, for example, Bithumb Global, the largest cryptocurrency exchange in South Korea, has launched a trading pair BNB/USDT, which has certainly helped to popularize the token.

At the beginning of 2022, Binance announced that BNB would become a bridge in the merger of two projects: Binance Chain and Binance Smart Chain. The common network was named BNB Chain and became compatible with Ethereum blockchain. The project supports smart contracts and decentralized applications (DApps). It is also possible to store a BNB coin in this chain and earn some interest.

Binance's Biggest Hack

On October 7, 2022, cryptocurrency exchange Binance has temporarily suspended transfers and other transactions after it discovered a vulnerability in its blockchain-based Smart Chain (BSC) network. Because of this vulnerability, attackers were able to steal between $100 million and $110 million, according to Engadget.

Advantages and Disadvantages of Binance Coin

Why Did Binance Coin's Price Grow So Much?

In general, we can distinguish three reasons.

• The first one is the popularity of the creator of Binance, Changpeng Zhao. This person has a lot of experience in various structures: he worked at Bloomberg Agency, at the Tokyo Stock Exchange, as well as developed software for traders.
• The second thing is the popularity of the Binance exchange itself. Millions of people use its services, and therefore they have to deal with BNB.
• The third reason can be called an aggressive and creative marketing of this project.