What is Binance?
Binance comes from the words “Binary” and “Finance.” It has 2 meanings.
- It is one of the world’s leading cryptocurrency exchanges.
- The BNB Coin is a cryptocurrency which can be used as an intermediary when exchanging money, from one crypto-coin to another.
In 2017, ChangPeng Zhao founded a Chinese company called Beijie Technology. Beijie is the holding company which runs Binance exchange. It is currently headquartered in Hong Kong. Zhao, together with the Binance team, has worked to boost the growth of the platform into one of the most successful exchanges in the world.
What Is the Binance Exchange?
Binance Exchange is one of the popular cryptocurrency exchanges that offers trading in more than 45 virtual coins including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Binance Coin (BNB).
Why should you choose Binance?
In addition to exchange-specific services, Binance also offers other tools, platforms, and services for supporting the overall blockchain ecosystem.
Binance has a blockchain technology incubator called Binance Labs, which focuses on nurturing promising pre-ICO stage projects. It helps deserving cryptocurrency project teams by providing necessary funding for development, advisory resources, and a launchpad for any necessary listing and fundraising exercises.
Binance also offers a site called LaunchPad for hosting new and emerging blockchain projects. One can also create APIs, which stands for application programming interfaces.
It launched its own Binance Coin (BNB) cryptocurrency through an ICO in July 2017. BNB has gained popularity and actively trades with a market cap of around $2.5 billion as of September 2019. It is set to become the native currency of the decentralized Binance exchange.
How Does Binance Coin Work?
From a technical point of view, there isn’t anything particularly unique about Binance Coin. That said, there are some important things to know about Binance Coin.
As it was built upon the Ethereum blockchain, it can be assumed that much of the technology behind it is very similar. After they switched to their blockchain, there may be more significant differences.
One key difference with Ethereum is that Binance Coin cannot support smart contracts, though BNB can be used as ‘gas’ on the Binance blockchain, which is a similarity.
It should be mentioned though that the Binance Coin is centralised which will always be off-putting for cryptocurrency enthusiasts.