The Binance coin (BNB) may be used within the Binance ecosystem where Non-Fungible Tokens (NFTs) are sold, but it is not a NFT.
The Binance coin (BNB) is used as a currency on the Binance blockchain and although this blockchain functions as a network for Non-Fungible Tokens (NFTs), this currency is not unique enough to be non-fungible.
Is BNB a Non-Fungible Token?
The world of crypto-currencies, blockchains and non-fungible tokens (NFTs) can be incredibly confusing when you are starting out. Especially with the continuous introduction of new platforms and terms, it can be difficult to keep up.
The most important thing to note is that an NFT, as the name suggests, is not fungible – meaning that it cannot be replaced by another identical item in the way that $1 can be exchanged for a different $1.
This is because all of its innate value lies in its uniqueness. Blockchains like BNB create the ecosystem or framework in which these NFTs can be created, stored and sold, almost like an NFT marketplace.
Binance coin (BNB) is the native currency used on the BNB blockchain, and since this currency can be traded and exchanged, it cannot be regarded as an NFT.
Although you may hear some people referring to the Binance coin (BNB) as a token, what they really mean is that it is the utility token used within the Binance ecosystem.
What is a utility token?
A utility token like the Binance coin (BNB) may look like a simple crypto-currency at first, but unlike security tokens, they cannot give you ownership of a stake in a project.
Instead, utility tokens give you access to specific functionalities or features within a decentralized system, like a blockchain ecosystem (in this case the BNB Chain).
What makes Binance coin (BNB) so unique?
The main difference between the Binance coin (BNB) and other crypto-currencies, with which you may be more familiar, is the fact that Binance actually has an extensive burning process for the coin.
When the Binance coin was initially released in the 2017 initial coin offering (ICO), around 200,000,000 BNB was released.
However, Binance actually buys back some of the Binance Coin (BNB) annually, so that the supply remains lower than this initial offering. Experts believe that this should ensure that the Binance coin (BNB) value keeps climbing.
What can you do with Binance Coin (BNB)?
Most people mainly use Binance coin (BNB) to pay for transaction fees on Binance and to earn votes within the blockchain.
Binance coin (BNB) is actually also one of the few altcoins that has managed to go beyond its own ecosystem, and it can now be used on a range of other platforms like Canva, TrabelByBit and even some social media platforms.