NFTs, or Non-Fungible Tokens, have rapidly evolved past just basic doodles. Today, they’re surprising regulators and changing the playing field in unexpected and dangerous ways in the world of finance. Written by Li Wei, Blockchain Content Strategist. Nathan will tell you what NFTs really are, how they work, and why they’re becoming so prevalent and influential in our financial landscape. Whether you’re a blockchain tech expert or someone just looking to learn more about crypto, this article is designed to arm you with smart, simple, actionable crypto insights.
Understanding Binance Coin (BNB)
What is BNB?
BNB, the native cryptocurrency of the Binance ecosystem, was first launched by Binance as a utility token for discounted trading fees. Originally launched as a utility token to receive discounted trading fees on the Binance exchange, BNB has evolved significantly since then. Ever since, it’s been radically different. Today, it serves an essential purpose within the larger Binance ecosystem — most notably, the BNB Chain. BNB has a much more centralized origin than either Bitcoin or Ethereum. Moreover, it is directly tied to the Binance exchange itself.
Who created Binance Coin (BNB)?
Binance Coin was not an intellectual experiment contrived by Changpeng Zhao and the Binance team. It was initially issued in July 2017 with an Initial Coin Offering (ICO). The original purpose of the coin was to provide funding that would help develop the exchange platform Binance itself had launched. BNB as a token has extended far beyond this. It rapidly turned into a core part of the Binance Smart Chain, which has recently rebranded to the BNB Chain.
The Evolution of BNB and BSC
A Brief History of BNB
The landscape of NFTs changed dramatically with the launch of CryptoKitties in 2017. This early example was a powerful proof of concept for the value and importance of cryptographically unique digital assets stored on blockchain. Non-fungibility is another important aspect of the NFT revolution. Each token has its own individual value that cannot be easily traded equally like fiat currencies. Back in 2021, NFT sales hovered at 1.5 million. By 2022, they had exploded to more than 27 million, a testament to the rapid pace of market growth.
What is the BNB Chain?
The BNB Chain is another blockchain ecosystem created and launched by major crypto exchange Binance. It consists of two main chains: BNB Beacon Chain and BNB Smart Chain (BSC). Developers together. Governance is the primary focus of the BNB Beacon Chain. By comparison, the BSC is Ethereum Virtual Machine (EVM) compatible and offers full support for smart contracts. This enables developers to create decentralized applications (DApps) and mint NFTs on the BNB Chain. Compared to the Ethereum network, the BNB Chain provides quicker transaction speeds and cheaper costs. This encourages innovation, which in turn makes it an attractive platform to develop NFT projects.
Functionality of the BNB Chain
Proof of Staked Authority (PoSA)
The BNB Chain uses a consensus mechanism known as Proof of Staked Authority (PoSA). This PoS/DPoS hybrid approach is not unique to ARK. In PoSA, the validators are chosen according to their staked BNB and their repute. This new centralized-decentralized district system would ensure a greater balance between decentralization and efficiency.
Role of Validators
Validators on the BNB Chain are responsible for verifying transactions and maintaining the integrity of the blockchain. They stake BNB and subsequently offer their services to participate in the consensus process, and in return, they receive rewards. In addition, the number of validators is kept intentionally low in Ethereum to improve transaction speeds.
Transaction Fees Explained
Transaction fees are lower on the BNB Chain than on Ethereum. This underlines one of the biggest benefits of using the BNB Chain for NFT transactions. Reducing fees ensures users can purchase, sell, and trade NFTs without facing hefty transaction fees.
The Burn Mechanism
BNB has a unique built-in burn mechanism, where a portion of the supply BNB is regularly destroyed. This is intended to lower BNB’s total supply, which helps increase its value over time. These burns take place on a quarterly basis and are dependent on the trading volume occurring on the Binance exchange and BNB Chain.
Ethereum Virtual Machine (EVM) Compatibility
Like many other chains, the BNB Chain is compatible with the Ethereum Virtual Machine (EVM). This makes it easier for developers to migrate their Ethereum-based DApps and smart contracts to the BNB Chain. This compatibility has led to thousands of developers flocking to the BNB Chain, making it one of the fastest-growing and most adopted blockchains available.
Utilizing Smart Contracts
Smart contracts are self-executing agreements encoded and stored on the blockchain. In practice, they largely automate enforcement of the terms of a contract between buyers and sellers. NFTs employ smart contracts to establish ownership and features of a digital asset.
Decentralized Applications (DApps)
Decentralized Applications (DApps) are applications that exist and operate on a blockchain network. illustration of censorship resistance and POF They are not controlled by any one person or company, which makes them inherently more censorship resistant and POF resistant. Over the long term, the BNB Chain’s ecosystem is diverse, with hundreds of DApps like popular NFT marketplaces, DeFi platforms, and blockchain games.
NFTs on the BNB Chain
NFTs on the BNB Chain operate just like NFTs on other blockchain networks. Like a physical piece of art or real estate, each NFT is entirely unique and ownership is verified on the blockchain. The BNB Chain’s lower fees and quicker transaction speeds than Ethereum make it an attractive option for NFT creators and collectors.
Tokenization Features
BNB Chain offers the technological and infrastructural means to tokenize any kind of asset, especially real-world assets such as real estate, art pieces, and commodities. Tokenization is taking the rights associated with an asset and placing those rights into a digital token that can be freely traded on the blockchain. This has the potential to improve the liquidity and accessibility of these assets.
Pros and Cons of BNB Coin
Advantages in DeFi
BNB has multiple benefits within the decentralized finance (DeFi) ecosystem. Its compatibility with the Ethereum Virtual Machine (EVM) makes integration with all of the major DeFi protocols easy. Additional benefits lower transaction fees on the BNB Chain help encourage healthy user engagement with the DeFi sector. This much lower cost of using the service increases participation across lending, borrowing, and yield farming.
Centralized Finance (CeFi) Considerations
BNB is deeply connected with centralized finance (CeFi) via the largest exchange, Binance. In fact, it’s a major part of the overall decentralized finance (DeFi) universe. With over 70 million users, the Binance exchange serves as a central access point for users on both sides of the CeFi and DeFi aisle. This easy integration is an incredible boon for intelligent users who seek to maximize their financial opportunities.
PayFi Opportunities
BNB unlocks new prospects within PayFi (Payment Finance) industry. It is accepted as a means of payment for goods and services, virtual and in-person. Stakeholders have already been onboarded. The Binance Pay platform is straightforward, making it easy for users to send and receive BNB payments. This can be a safe, easy and inexpensive way to exchange money with other people.
Acquiring Binance Coin (BNB)
Recommended Wallets for BNB
To store BNB, you’ll need a wallet that supports it. Here are a few options:
- Trust Wallet: A mobile wallet that supports BNB and other cryptocurrencies. It's user-friendly and allows you to interact with DApps on the BNB Chain.
- MetaMask: A popular browser extension wallet that can be configured to work with the BNB Chain. It's widely used in the DeFi space.
- Ledger Nano S/X: Hardware wallets that provide a secure way to store your BNB offline.
Buying on Centralized Exchanges (CEXs)
The primary method of purchasing BNB is on centralized exchanges (CEXs) such as Binance, Coinbase and Kraken. These exchanges come with an easy to use development environment, fast transaction speeds and multiple options of fiat currencies. To purchase BNB on a centralized exchange, you’ll first need to register for an account, go through the KYC verification process, and deposit funds.
Earning BNB Through Rewards
You can earn BNB with different rewards programs. Take, for example, the Binance exchange, which rewards users for staking BNB and taking part in similar activities. In fact, some DeFi platforms can provide users with BNB rewards if they provide liquidity on those platforms.
Peer-to-Peer Transactions for BNB
Peer-to-peer (P2P) transactions provide a convenient way to buy and sell BNB directly with other users. This can be especially convenient if you’re looking to avoid touching a centralized exchange. Currently, Binance P2P is one of the largest platforms supporting P2P BNB transactions.
Staking Rewards Explained
Staking requires you to lock up your BNB in a wallet to help the BNB Chain’s consensus mechanism. In return, you earn staking rewards. Your reward earning potential varies based on how much BNB you stake and the length of your staking term.
Using Decentralized Exchanges (DEXs)
Using a decentralized exchange (DEX) you can trade BNB directly with other users without having to trust a central intermediary. PancakeSwap is one of the most popular DEXs on the BNB Chain, where you can swap your BNB for other tokens.
How to Buy BNB in 2025
We know that making predictions about the future can be difficult. The mechanics of purchasing BNB in 2025 will probably look a lot like purchasing it today. You’ll continue to find BNB available for purchase on centralized exchanges, decentralized exchanges, and via P2P transactions. The first key difference might be access to better features and tools to purchase and sell BNB.
Selling BNB Effectively
Selling BNB smartly means knowing where to sell and when to place your trade. Consider the following factors:
- Exchange Fees: Compare the fees charged by different exchanges before selling your BNB.
- Market Conditions: Monitor market conditions and sell when the price is favorable.
- Order Types: Use limit orders to specify the price at which you want to sell your BNB.
Storing Your BNB Safely
Storing your BNB securely is important in order to safeguard your investment. While transactions on the blockchain are secure, there have been instances of hacking or theft from peer-to-peer wallets, for example. Here are some tips:
- Use a Hardware Wallet: Hardware wallets provide the most secure way to store your BNB offline.
- Enable Two-Factor Authentication (2FA): Enable 2FA on your exchange and wallet accounts to add an extra layer of security.
- Keep Your Private Keys Safe: Never share your private keys with anyone.
- Use Strong Passwords: Use strong, unique passwords for your exchange and wallet accounts.
- Be Aware of Phishing Scams: Be cautious of phishing scams that try to trick you into revealing your private keys or login credentials.
The Future Prospects of BNB Coin
As with any crypto asset, the future prospects of BNB coin are intimately connected to the vision and success of the Binance ecosystem. As Binance grows its offerings and continues to add users, the demand for BNB should grow right alongside it. Some of these NFT collections will be worth hundreds of thousands in a few years or even months. Because the future, we believe, is where the long-term results lie. That said, remember that the cryptocurrency market is extremely speculative and volatile, and values may even jump or plummet in minutes.
Conclusion: Evaluating BNB as an Investment
To properly assess BNB as an investment, there are a number of factors you need to take into account. Social influence contributes to the decision to invest in NFTs. The trust in a YouTuber, a large community, or a friend can influence whether one enters a project or not. A strong feeling of being part of a community of other collectors and investors often drives all but the most analytical NFT investors. Many started buying NFTs for art's sake. Hedonic motivation and habit are determinants of technology use. For users, perceived risk is central. They understand that by investing in NFTs they risk losing their investment. The risk is completely financial and very high due to fraud and anonymity.
If the goal is to invest in NFTs, you’ll need to stack utility on it to get it through the current gauntlet of entry barriers. If you are considering investing in BNB or any other crypto asset, always do your own research. Learn what risks are out there so you can best protect your investment.
Safe Platforms to Buy BNB
- Binance: The most obvious choice, given its direct connection to BNB.
- Coinbase: A user-friendly platform with a good reputation for security.
- Kraken: Another reputable exchange with a wide range of cryptocurrencies.
Current Value of $1 in BNB
The current value of $1 expressed in BNB will vary based on the prevailing exchange rate. You can use a crypto converter to know how much BNB you can get for $1.
Is BNB Comparable to Bitcoin?
Though BNB and Bitcoin are both cryptocurrencies, they have different functions. Bitcoin is fundamentally a decentralized store of value and medium of exchange. BNB primarily serves as a utility token, used within the Binance ecosystem.
Popularity Factors of BNB
- Utility: BNB has a wide range of uses within the Binance ecosystem, including discounted trading fees, staking rewards, and payments.
- Growth of Binance: The growth of the Binance exchange and the BNB Chain has contributed to the popularity of BNB.
- Burn Mechanism: The BNB burn mechanism helps to reduce the supply of BNB, which can potentially increase its value.