What is BNB?

Binance or BNB for short was issued to fund the launch of the Binance cryptocurrency exchange. A total of 200,000,000 coins were distributed with the condition that no more would ever be created. Binance coin is used to pay for fees within the Binance exchange when trades are executed. In addition, the token undergoes a quarterly buyback program in which Binance uses 20% of their profits to buy back tokens and burn them. In essence, the act of token burning over time causes the underlying value to increase as the supply decreases.

Binance Exchange

The Binance Cryptocurrency Exchange was launched in July of 2017. The rapid expansion of Binance has been hard to miss. With billions of dollars in trading volume passing through the exchange on a monthly basis, there is no doubt as to the success and substantial growth of Binance.

The name itself, Binance, stands for Binary Finance, which conveys the exchanges philosophy of accepting only digital assets. However, the exchange recently launched a feature allowing customers to pay with credit cards through the popular cryptocurrency exchange.

Binance was made to solve the core problems that were plaguing the industry at the time including software architecture, security, customer service, language support. In addition, their matching engine is capable of sustaining 1,400,000 orders per second.

Device coverage also spans across their Website, Mobile application, and a native PC client as well. Revenue is generated through various fee structures implemented into transactions taken on the exchange platform such as trading and withdrawal fees.

Token Burn

Each quarter, the Binance exchange uses 20% of their net revenue to buy back BNB tokens, which it then burns and ultimately destroys them. The token burning process will be carried out until the total supply of BNB is 100,000,000. Equating to half of the initial starting supply. The idea behind the token burn is that as the total supply of BNB decreases, the value of the token conversely increases in conjunction with the tokens utility.

Binance Decentralized Exchange

Binance recently announced they launched the testnet for their DEX or decentralized exchange is known as (you guessed it) Binance DEX. The key difference between the two is that, as a user of a decentralized exchange, you own all of your private keys and manage your own wallet as opposed to an exchange holding your assets in their storage wallets. Furthermore, the DEX will operate across a network of decentralized nodes, and eventually, the network will not be controlled by any singular entity.

Changpang Zhao – CZ for short, the CEO of Binance stated the Binance DEX was capable of 1 second block times which means it will be able to handle the same trading volume as Binance itself. Decentralized exchanges are important because some users prefer to personally manage their own assets reducing the risk of their assets being lost in an exchange hack.

Binance Team

Changpang Zhao, aka CZ – CEO
CZ founded BijieTech a company providing cloud-based exchange system to exchange operators, which he founded in September 2015. Currently powering 30+ exchanges in the Asia region. The company was cash flow positive since day one, closed 36.1 million RMB in revenue, and doubled it the year following. Since the successful launch of Binance, he has focused solely on the project and relinquished his management duties to new CEO.

Before his time at BijieTech, he was the co-founder and CTO of OKcoin, another cryptocurrency exchange. His insight and proven success across many projects in such a short timespan demonstrates his drive, motivation, and ability to lead great projects.

Roger Wang – CTO
Co-founder and CTO of Binance, Roger Wang has 10+ years experience working in the financial industry, he has built technical teams, designed high-level architecture of exchange and clearing systems, and has run operational teams to ensure the security and stability of various exchange systems.

Roger worked at BijieTech with CZ, but prior to that, he spent his time at Nomura Securities, the largest investment bank in Japan. During his time there, Roger was responsible for global credit booking, analytics, and the marking system, which supported thousands of traders and analysts globally.

Even before his time at Nomura, he worked at Morgan Stanley as a tech leader where he designed and built a financial TB level data warehouse used to support a large number of users to provide real-time data analytics and financial modeling.

James Hofbauer – Chief Architect
James is another co-founder of BijieTech and also the Chief Architect for the company. His time is spent hard at work architecting and integrating the core matching engine and its middleware. In addition, he oversees client exchanges’ public endpoints to ensure security and high performance.

Before BijieTech, James worked at Palantir, the data analytics company from Silicon Valley. Palantir uses large-scale high-performance systems to increase cyber-security, anti-money laundering, fraud detection, and even counter-terrorism.

Paul JanKunas – VP of Engineering
Paul is the VP of engineering at BijeTech and is directly responsible for the implementation of C++ to the core matching engine. With more than 15 years of experience in developing an exchange system as well as financial trading applications. Paul diligently spends his time ensuring the performance and scalability of systems. Prior to BijieTech, Paul worked in a small division of the SBI group known as SBI BITS.

Allan Yan – Product Director
Allan was also a co-founder and product director of BijieTech. He has over 10 years of experience in product design, user experience, and trading. His talent singlehandedly pushes the envelope of product innovations in the exchange systems built by his companies and drives products beyond the competition.

Sunny Yi – Operations Director
Sunny, co-founder and ops director at BijieTech. Sunny has years of experience in management and technology consulting. He has led over 20 exchange systems projects. During that time, he provided both comprehensive consulting for strategy and operations, as well as, risk control and system development. Prior to BijieTech, Sunny worked at Accenture as the senior consultant and provided many Top 500 companies for strategic and IT consulting.

Conclusion

Currently, the BNB token is one of the more versatile coins within the cryptocurrency market and has been made available as an exchange of value on multiple platforms using cryptocurrency such as the VIBE or Die game a first-person blockchain shooter. Due to the rapid success of the Binance exchange and the ever-expanding use of utilities for Binance coin, there is a clear picture of sustainable growth in the foreseeable future for this project.

 


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