What is BNB (Build and Build, formerly Binance Coin)? Explaining its Mechanism, Uses, and Future Prospects

2025/10/15 19:13
Editors of Iolite
Written by Iolite Editorial Team
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What is BNB (Build and Build, formerly Binance Coin)? Explaining its Mechanism, Uses, and Future Prospects

What is BNB (Build and Build)? Explaining its Mechanism, Uses, and Future Prospects

Binance, one of the most influential exchanges in the cryptocurrency market, plays a crucial role with 'BNB (Build and Build, formerly Binance Coin)'. Far from being merely a tool for discounted trading fees, BNB serves multiple functions on its native blockchain, the 'BNB Chain'. It is used for gas fees, in DeFi (Decentralized Finance), NFT (Non-Fungible Token) services, gaming, and as an investment target.

This article comprehensively explains the basic information about BNB, its mechanism, use cases, future prospects, and associated risks.

Overview and Origin of BNB (Build and Build)

BNB 1

BNB (Build and Build) was launched in 2017 alongside the inception of Binance. Initially issued as an ERC-20 token on the Ethereum blockchain, it transitioned in 2019 to become the native token of its proprietary blockchain, 'Binance Chain', which has since been renamed to 'BNB Chain'.

It is important to note that Binance does not directly develop the chain, but rather ensures its decentralization. The total supply cap of BNB is set at 200 million tokens, with periodic 'burns' gradually reducing the number in circulation. As of the time of writing, approximately 138 million BNB have been issued, with future burns planned to eventually reduce the total to 100 million BNB.

The Mechanism and Features of BNB (Build and Build) as a Token

BNB 2

The most significant feature of BNB (Build and Build) is its 'versatility'. Specifically, it includes the following:

  • Discount on Trading Fees
    Using BNB (Build and Build) to pay for transaction fees on the Binance (Binance) cryptocurrency exchange can result in discounts of up to 25%.
  • Gas Payments on the BNB Chain
    BNB (Build and Build) is used as gas (fees) for utilizing smart contracts, DeFi (Decentralized Finance), games, and NFT (Non-Fungible Token) platforms on the BNB Chain.
  • Participation in Launchpad
    Ownership of BNB (Build and Build) is often a prerequisite for participating in new token sales (IEOs) on the Binance Launchpad, making it a necessary asset for investment.

Thus, BNB (Build and Build) transcends its role as an exchange token and becomes a core infrastructure within the entire Web3.0 ecosystem.

BNB Chain and the Web3.0 Ecosystem

BNB 3

In September 2020, Binance announced the release of the 'BNB Smart Chain (BSC)', separate from the then-existing Binance Chain. In 2022, it was rebranded and integrated into what is now known as the 'BNB Chain', aiming to form a broader ecosystem.

Before the integration, the characteristics of each were as follows:

  • BNB Smart Chain (BSC)
    Compatible with EVM, capable of executing smart contracts similar to Ethereum. It has become a hub for DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and dApps (Decentralized Applications), with many projects being ported or uniquely developed.
  • BNB Beacon Chain (formerly Binance Chain)
    Primarily focused on fast transactions and token issuance. It has a strong governance layer aspect, enabling staking and voting.

As reiterated, these blockchains have now merged into the BNB Chain, capturing the distinctive features of each. It balances high transaction speed with low gas fees, serving as a foundation for many Web3.0 projects and game-based dApps. Notable examples include 'PancakeSwap' and 'Galxe'.

Price Trends and Market Evaluation of BNB (Build and Build)

BNB 4
Recent one-year trend of BNB

Current Price: ¥180,323

As of October 15, 2025 (CoinMarketCap 'Build and Build (BNB) Price, Chart, and Market Cap')

BNB (Build and Build) was trading below $1 during its 2017 ICO, but during the 2021 cryptocurrency bubble, it briefly exceeded $700. After subsequent adjustments, by October 2025, the price has significantly increased, fluctuating between $1,200 and $1,300.

The price of BNB (Build and Build) is influenced by the following factors:

  • Trading volume and management trends of Binance
  • Implementation and scale of burn events
  • Transaction volume on the BNB Chain
  • New projects on the BNB Chain (DeFi/NFT/Games, etc.)
  • Regulatory trends by the U.S. SEC (Securities and Exchange Commission) and other international regulatory bodies

As of October 2025, BNB (Build and Build) ranks fourth in market capitalization, maintaining stable demand and high liquidity.

Risks and Considerations When Using BNB (Build and Build)

BNB 5

While BNB (Build and Build) has attractive features, it also comes with several risks.

  • Centralization Criticism
    Although the management of BNB and the BNB Chain is not directly conducted by the cryptocurrency exchange Binance, it substantially depends on the company's actions. This has led to criticisms of a divergence from the decentralized ethos promoted by Web3.0.
  • Regulatory Risk
    In the past, BNB has been pointed out by the U.S. SEC (Securities and Exchange Commission) as potentially qualifying as a security. Although perceptions are changing with the shift in government, depending on the classification of exchange tokens, there could be significant regulatory risks.
  • Technical Congestion and Security
    The BNB Chain is known for low gas fees, which leads to a high volume of spam-like transactions, causing network congestion and becoming a breeding ground for hacking incidents. There have also been hacking incidents related to cross-chain bridges in the past.

The Future Potential and Outlook of BNB (Build and Build)

BNB 6

BNB (Build and Build) is likely to continue attracting attention for the following reasons:

  • Further expansion of its unique ecosystem
    The BNB Chain has already implemented ZK-rollups, and plans to focus on multi-chain deployment and further decentralization in the future.
  • Adaptability to regulations
    Binance is advancing the acquisition of multiple licenses globally, and there is potential for BNB (Build and Build) to be accepted as a legal infrastructure.

Integration with Web3.0 services
BNB (Build and Build) is expected to continue serving as a 'currency' or 'gas fee' in next-generation services such as DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), the metaverse, and GameFi.

Summary

BNB 7

BNB (Build and Build) transcends the typical exchange token category, serving as a cornerstone of the smart contract platform and also receiving high acclaim as an investment target. While regulatory risks and operational challenges remain, considering the breadth of its use cases and Binance's influence, BNB (Build and Build) will continue to play a significant role in the cryptocurrency market going forward.

When investing, it is crucial to carefully assess the risks and returns and approach it with a long-term perspective.


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