With all the focus on solana and cardano, it’s funny how nobody talks about the world’s fourth largest cryptocurrency and a real challenger in the smart contract space, Binance.
What is Binance?
Binance is a cryptocurrency trading exchange founded by Changpeng Zhao, known in the crypto community as “CZ”. A cryptocurrency trading exchange is similar to the JSE or the New York Stock Exchange, but for products related to crypto.
Due to the wide variety of cryptocurrencies and features offered to its customers, Binance has become a superstar. It has become a ‘go-to’ exchange for many to buy cryptocurrency, with a 2020 crypto exchange volume of around 2 USD–one thousand billion.
Believe it or not, this volume is growing at an alarming rate, with total transaction volume for 2021 ranging from around $ 60 billion to $ 90 billion per day. This means Binance could be on track to make north of $ 20.–billion dollars in trade volume this year. To put that in perspective, the second largest stock exchange is only about a fifth of that volume.
Besides being an exchange for trading cryptos, Binance also has its own blockchain, the Binance Smart Chain (BSC). The BSC offers similar functionality to Ethereum, Solana, and Cardano, in that it seeks to develop an ecosystem of decentralized finance (DeFi) products and services by facilitating these financial transactions using smart contracts.
Challenge is a subsector of the cryptocurrency industry challenging traditional financial institutions, including banks, insurance companies, and stock brokers, where entrepreneurs build trading and lending systems semi-automated on blockchain networks.
Like solana, BSC offers faster transaction times, lower fees, and programming capability that allows developers to easily create complex smart contracts.
But there is a catch… Although the BSC can offer much faster transactions and lower costs, it does make trade-offs to make it happen..
The reason the Ethereum blockchain is “slower” is because a decentralized network runs on thousands of nodes or computers, and therefore it takes time for that network to reach consensus.
The reason the Binance network can operate at a much faster transaction speed is that it only uses 21 validators. Therefore, just like solana, the BSC forgoes a certain decentralization to speed up transactions.
What is the purpose of the Binance coin?
Binance coin (BNB) is the native cryptocurrency of the Binance network. BNB was originally created as an ERC-20 token on the ethereum network, but has since moved away from it and developed its own network, BSC.
BNB was created as an easy way for Binance users to pay trading fees and in addition as a utility token.
A utility token is a token that cannot be viewed as cash but rather gives users access to products and services on that specific platform.
For example, Binance allows users to participate in multiple areas including trading, investing, interest, lending, borrowing, and more. For all of these features, Binance charges a fee. In the process of exchange, users pay lower fees if they paid in BNB. In addition, the more BNB you hold, the more you can benefit from a discount on these trading fees.
Just like using ethereum to pay fees when interacting with ethereum protocols, users must use BNB to interact with BSC and all applications built on it.
The performance of the Binance coin?
We know that Solana and Cardano have drawn all the limelight over the past few months because their returns have been nothing short of amazing.. But Binance Coin’s returns haven’t gone that far.
Below we can see the returns of the largest and most trusted cryptocurrencies.
Binance is currently the third best performing cryptocurrency. It is also the best–perform a centralized cryptocurrency exchange (CEX). But the returns don’t show you everything. You have to follow the money …
Based on total locked-in value (TVL) in smart contract platforms, Binance smart chain is the second largest behind Ethereum, with 13% of all locked-in smart contract value.
The TVL is simply the number of assets currently held on specific smart contract platforms. So TVL shows exactly which smart contract platforms attract the most money and therefore the most adoption.
Why would I invest in this?
There are many good reasons to own BNB. Perhaps most of all, BNB gives you exposure to the world’s largest crypto exchange while also giving you exposure to the second-largest smart contract cryptocurrency.
As noted above, the BSC offers faster transaction times, lower fees, and programming capability that makes it easy for developers to create complex smart contracts. This is clearly an attractive blockchain for developers, as the TVL shows that it is second in terms of assets held in their smart contracts.
Yes, Binance has had its share of regulatory oversight from governments around the world, but it is actively working to resolve the issues that led to these concerns.
Where to buy Binance coins?
The cap–crypto based investment platform Revix (www.revix.com), which is supported by JSE–listed Sabvest, will be one of the first platforms in South Africa to offer Binance coin as a standalone cryptocurrency investment option. Revix will offer BNB from September 24 with a tempting promotion at no cost.
- ● Revix will offer no purchase costs on Binance coin purchases when using rands and pounds sterling for one week (September 24 to 30, 2021).
- ● Revix will also offer a refer a friend promotion: If you refer one or more people using your sponsorship code, you receive double the Revix rewards to the value of R600 by reference. (Promotion valid: from September 17 to 30, 2021.)
Revix also offers several standalone cryptocurrencies, such as bitcoin, ethereum, solana, uniswap, polkadot and many more.
Through Revix, you can also access their ready-made “crypto packets”. Their bundles allow you to effortlessly own an equally weighted basket of the world’s largest and, by default, the best performing cryptocurrencies, without having to create and manage a cryptocurrency wallet yourself. They are like the JSE Top40 or the S&P 500 but for crypto.
Revix brings simplicity, confidence and excellent customer service when investing in cryptocurrencies. Its easy to use online platform allows anyone to securely own the world’s best cryptocurrencies with just a few clicks. Revix guides new customers through the sign-up process until their first deposit and their first investment. Once configured, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember that cryptocurrencies are high risk investments. You should not invest more than what you can afford to lose, and before investing, please consider your level of experience, your investment goals and seek independent financial advice if necessary.
This article is intended for informational purposes only. Opinions expressed are opinions and not facts and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell a cryptocurrency.
To learn more, visit www.revix.com.
- This promoted content has been paid for by the affected party
Binance Coin: The Ethereum Killer Nobody Talks About
Source link Binance Coin: The Ethereum Killer Nobody Talks About