In 2019, Binance launched the Binance Chain, their blockchain mainnet (BC). After the launch, Binance organised a token exchange during which users may exchange their ERC-20 BNB tokens for Binance Coin (now BNB) on the Binance Chain, as reported by Cointelegraph.
Cointelegraph noted that in order to address the issue of limited potential, Binance introduced a second blockchain in 2020 dubbed the Binance Smart Chain (now the BNB Smart Chain). While the blockchain and BC operate side by side, they have separate functions.
What started out as a straightforward utility token has developed into something far more complex. BNB’s first goal was to reduce Binance trading expenses, but that was just the start. Currently, BNB is a token with a large number of applications and its own blockchain. Initially released as an ERC-20 token on Ethereum, Binance Coin (now BNB) was later transferred to the Binance Chain (now the BNB Chain). It supports the Binance Smart Chain and serves as the network’s native token (now the BNB Smart Chain).
However, Binance has relaunched the blockchain that underpins its website to emphasise decentralisation. Binance Coin was given a new name, and the Binance Chain and Binance Smart Chain were combined to form the BNB Chain.
What began as a simple utility token has evolved into something much more complicated. The primary objective of BNB was to lower Binance trading costs, but that was just the beginning.
BNB is a token with several applications right now and its own blockchain. Binance Coin (now BNB) was initially made available as an ERC-20 token on Ethereum and later moved to the Binance Chain (now the BNB Chain). It serves as the network’s native token and backs the Binance Smart Chain (now the BNB Smart Chain), Cointelegraph stated.
To emphasise decentralisation, Binance has relaunched the blockchain that powers its website. The Binance Chain and Binance Smart Chain were joined to create the BNB Chain, and Binance Coin was given a new name.
(With insights from Cointelegraph)
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