“Is this the One to Watch?”
First and foremost, Binance Coin is the digital currency linked with the platform Binance. Binance is one of the world’s leading cryptocurrency exchanges. As cryptocurrencies have gained more popularity, Binance has also seen its user-base grow, due to a number of factors that include an incredible user-friendly experience and low transaction fees.
There are countless crypto exchanges, but many of them suffer from a number of debilitating issues that prevent them from growing their user-bases. Such problem include poor technical architecture, where many exchanges are literally thrown together by people who might have a technical background, but they lack the relevant experience when it comes to the world of finance or operating an exchange.
In order to get the platform up and running as quickly as possible, they will most often choose a simple approach, whilst this might work to begin with, as the traffic grows and the user-base, the system won’t be able to cope with the added pressure. Exchanges, particularly cryptocurrency exchanges need to be engineered from the ground up with efficiency, speed and scalability, and also security. A lack of security, especially in the finance world opens the doors to cyber attacks from around the world, and the potential for the platform to be hacked and private information stolen.
What is Binance Coin?
Binance coin uses the ERC-20 token standard from Ethereum, which outlines a set of rules that all the Ethereum tokens must follow. This means that this particular token warrants developers of all types to meticulously predict how new tokens will work within the larger Ethereum spectrum. There is actually a benefit that the ERC-20 token brings to the table, which is the fact that projects don’t have to be redone every time a new token is released. Rather than have to restructure everything when a new token is set to be released, ERC-20 is actually designed to be compatible with new tokens.
The Binance exchange have designed this cryptocurrency to be used specifically on their platform, and the coin can be used as a method of payment for fees when exchanging fiat currency to cryptocurrency. As well as exchange fees, Binance will also allow you to use the coin to pay for withdrawal fees, listing fees and any other type of fees that may be included on their platform.
Who created it?
- Changpeng Zhao – CEO
Zhao is the founder and CEO of BijieTech, which is a company that provides cloud-based exchange systems to exchange operators.
- Roger Wang – CTO
Wang is the co-founder and Chief Technical Officer, who has been working in the finance industry for over 10 years.
- James Hofbauer – Chief Architect
Co-founder and Chief Architect of BijieTech. Responsible for implementing the core matching engine and its middleware.
- Paul Jankunas – VP of Engineering
Responsible for the C++ implementation of the core machine engine, and has over 15 years experience of developing exchange systems and financial trading applications.
- Allan Yan – Product Director
Co-founder and Product Director of BijieTech. Yan has over 10 years experience dealing with product design, user experience and trading.
- Sunny Li – Co-founder and Operations Director of BijieTech
Li has many years of experience dealing with management and technology consulting.
Why does it exists?
Binance took it upon themselves to create their own crypto coin which is known as BNB, and it is used as an optional method for paying the exchange’s fees. Some of the fees include trading fees – the method of buying or selling coins, listing fees and withdrawal fees. BNB tokens are also used for Binance Launchpad which is a way to invest in ICO’s that take place on the platform.
Because Binance Coin is exclusive to the Binance exchange platform, the only way for it to “grow” so to speak is for the user base of Binance to grow too. Since the coins are used as a method of payment for a number of fees on the platform, if more people join the exchange then the likelihood of Binance coin rising in value increases.
When you have a popular platform like Binance, there are going to be necessary fees when dealing with cryptocurrencies. All of the popular exchanges charge fees for exchanging fiat currency for cryptocurrency, but where Bittrex has a fee of 0.25%. However, when using BNB, this fee is reduced by 50% and the amount is automatically calculated and reduced from the BNB tokens in the wallet.
With all the competition emerging left, right and center fighting for as much coverage of their exchange platform, I believe Binance has a leg up over most, as it shows with their professional and engineered exchange. This specific exchange has been built with the focus being on the future of cryptocurrency trading and exchanges, by creating an efficient, scalable and secure platform. Taking an approach of quality over quantity, Binance have been able to create a platform that will endure for the long-term.