What is BNB? | CryptoWallet.com

What is BNB?

BNB is a utility token created by the Binance exchange in 2017. It is predominantly used to pay for trading fees on the platform. However, it can also be used for online shopping at participating stores and was previously necessary to participate in a Binance Community Vote.

Binance incentivizes the use of their utility token (BNB) by providing a slight trading discount to those who pay their fees using it. 

Is BNB a good investment?

BNB is generally not used as an investment but rather as a way to participate in the Binance ecosystem. This is as opposed to BSC (Binance Smart Chain) which users do tend to speculate on regarding price. Binance Smart Chain is a blockchain created by Binance to compete with Ethereum on smart contract functionality at a lower price for fees.

What is the difference between BNB and BSC?

Whereas BNB is a utility token, BSC (Binance Smart Chain) is Binance’s attempt at creating a smart contract platform to compete with Ethereum. Binance Smart Chain is known for its low fees and ease of use. However, this does come at the cost of increased centralization.