What is BNB?

Question

What is BNB?

Accepted Answer

## TLDR

BNB is the native coin of BNB Chain, used to pay for network activity and support applications across its blockchain ecosystem.

1. It pays transaction fees and helps users interact with decentralized applications.
2. It supports BNB Chain’s smart contract, scaling, and data storage networks.
3. It has governance uses and a supply reduction mechanism.

## Deep Dive

### 1. Purpose and uses

BNB is used to pay fees for transactions on BNB Chain and to interact with decentralized applications, such as financial services and games. It began as an exchange utility token in 2017 and later became the native coin of the broader BNB Chain ecosystem. ([BNB Chain](https://www.bnbchain.org/en/what-is-bnb))

### 2. Technology and ecosystem

BNB supports several networks: BNB Smart Chain, where developers run smart contracts; opBNB, a layer 2 network designed to handle transactions more efficiently; and BNB Greenfield, a decentralized data storage network. *Smart contracts* are programs that automatically carry out actions on a blockchain. ([BNB Chain overview](https://www.bnbchain.org/en/blog/exploring-bnb-token-the-heart-of-bnb-chain))

### 3. Governance and supply

BNB holders can participate in BNB Chain’s on-chain governance. The ecosystem also uses token burns, which permanently remove coins from circulation, with a stated long-term supply target of 100 million BNB. ([BNB Chain overview](https://www.bnbchain.org/en/blog/exploring-bnb-token-the-heart-of-bnb-chain))

## Conclusion

BNB is the utility and governance coin at the center of a blockchain ecosystem for applications, transactions, and decentralized data services. How will BNB Chain develop the ways people use its networks?

What is BNB (BNB)?

Deep Dive

1. Purpose and uses

2. Technology and ecosystem

3. Governance and supply

Conclusion

Explore Similar Coins

XRP

Bitcoin

Dogecoin

Ethereum

Cardano

Solana