In September 2020, Binance launched the Binance Smart Chain (BSC), a blockchain network that runs in parallel with the Binance Chain. Its primary focus is to facilitate fast, decentralized (or non-custodial) trading. BSC boasts smart contract functionality and compatibility with the Ethereum Virtual Machine.

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BNB was originally issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. ERC-20 BNB tokens were later swapped with BEP-2 BNB on a 1:1 ratio. The BEP-2 BNB is the native coin of the Binance Chain 100 million BNBs were offered in the ICO, but the current total supply is lower due to periodic burning events, in which Binance destroyed BNB held in its treasury. 

Binance (BNB) Cryptocurrency 

Binance Academy. (2021, November 4). What is BNB? Binance Academy. Retrieved November 18, 2021, from https://academy.binance.com/en/articles/what-is-bnb. 

Binance Whitepaper

- Pay for trading fees on the Binance exchange
- Pay for trading fees on Binance DEX (Decentralized Exchange)
- Pay for transaction fees on the Binance Chain
- Pay for goods and services for both online and in-store purchases (eusing Binance Card or Binance Pay)
- Book hotels and, flights.


Uses for BNB

ERC-20 is a technical standard used to issue and implement tokens on the Ethereum blockchain. The standard describes a common set of rules that should be followed for a token to function properly within the Ethereum ecosystem. ERC-20 gives developers a list of rules to follow, which enables seamless functioning within the larger Ethereum platform. Numerous decentralized applications and services support ERC-20 tokens, making it easier for community members and businesses to adopt and use them on a wide range of applications (such as cryptocurrency wallets.

ERC-20

BEP-2 is a technical standard for the issuance and implementation of tokens on the Binance Chain. This standard defines a set of rules that tokens should follow to function in the Binance Chain ecosystem. BEP-2 isn’t a piece of software, but rather a set of technical specifications. These rules ensure that tokens in the Binance Chain ecosystem can seamlessly interact with each other. BEP-2 tokens can represent a wide range of digital assets and tradable goods.

BEP-2

When trading cryptocurrencies on the Binance Exchange, each trade will incur a standard fee of 0.1%. One can either pay the trading fees using the assets you are trading, or you can pay for them with BNB. If you choose to pay in BNB, you will get a discount. 

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