What the F** With Binance Coin (BNB)?
If you have been hearing about BNB or Binance Coin then you will know that is on fire lately. Probably you are confused or out of the loop about what is happening but don’t worry and let me shed light on the matter.
What Are BNB and BSC?
Binance Coin Is also known by BNB in short notation. It was created by Binance almost four years ago as an ERC-20 token to offer more features to the users of the platform.
A few years later, Binance created its own blockchain called Binance Chain and turned BNB as the native currency, something similar as ETH is to the Ethereum Network. Also, at the same time, Binance released its own decentralized exchange as the first application in Binance’s blockchain.
However, if they wanted Binance Chain to be useful then they needed to implement smart contracts. Because the blockchain offers fast and cheap transactions, adding this new feature would have overbooked the network.
To solve the problem, the team created a parallel chain called Binance Smart Chain. They added the smart contracts there and also added compatibility with Ethereum Virtual Machine (EVM).
The Massive Exodus to Binance Smart Chain
We already know about gas fee problems in the Ethereum network. If you tried to breed some crypto kitties lately then you should know that paying $108 in transaction fees is no joke. So, everybody everywhere at any time is running into similar problems.
It looks like some genius invented a platform (probably the same guy who invented Binance) where you introduce ETH and you get the exact same amount but in the BSC at 0 fees cost. And if it wasn’t called Binance Bridge, I would say it could be a scam because it is too good to be true.
So, what happens when you offer the same shit as ETH does but charging a few cents per transaction? That everybody goes crazy, and guess what people use to pay for gas fees on the Binance Chain... Binance Coins!
The Binance Bridge. CZ saving us from gas fees slavery.
Right now, a lot of people are moving to the promised land of BSC and buying BNB on the way, because of that, the currency has skyrocketed from $45 at the beginning of February to $120 in only ten days. Also, BSC supports other coins like BTC or DOT, giving alternative uses to coin hodlers.
I have walked all the way myself from Ethereum to BSC and I cannot be happier about the change, especially when I did buy at $60. Now everything works as it should be, I don't need to pay $67 to withdraw my shit tokens from DeFi applications and then another $87 to stake them.
Resuming, we have seen that all the noise is because some people are moving their funds from Ethereum to BSC. Also, Binance Bridge is a useful tool to change between networks quickly, easy and inexpensive. BNB is used to trade, pay fees, or invest in DeFi applications.
- Did you make the change already or will you do it in the future?
- What price will be BNB by the end of the month?
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STOPCheck out the last post from @hivebuzz:
I had some of the smartchain tokens at one point but I was so confused try to use it that I sold... 😞
I just didn’t understand it, but these Ethereum fee’s are helping me understand! I get it now lol
But yeah if I can get into some defi projects with low fees I’m in...
Sad to hear that :_(
I don't know how it was before, but now, is exactly the same with Metamask. You only need to add BSC to Metamask and it works like Ethereum.
I hope you are still on time.
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