BNB (Binance Coin) is a platform token issued by Binance Exchange (blockchain trading platform). When I compiled the information, its market value was in the TOP5.
1. Development process
The creation of the BNB chain and BNB token began with the launch of the Binance centralized exchange. Binance exchange was founded in 2017 by Changpeng Zhao. Changpeng Zhao established the Binance cryptocurrency exchange in mid-2017. Binance conducted an initial coin offering (ICO) of BNB, raising approximately $15 million to fund the development of the exchange and further operations. By early 2018, it became the largest cryptocurrency exchange by trading volume, reaching $200 million in profits in its second quarter.
Initially, the BNB token was an Ethereum-based ERC-20 utility token used to reward loyal users with discounted transaction costs. In early 2019, with the launch of Binance Chain, ERC-20 token contracts were replaced by native BEP (Binance Token Standard) token contracts. Binance and its community developed Binance Chain to realize the vision of a decentralized exchange (DEX).
By 2020, the community launched Binance Smart Chain (a modified proof-of-authority EVM-compatible blockchain) using source code from the Ethereum network to host smart contracts, and BNB became native to Binance Chain and Binance Smart Chain Cryptocurrency. In February 2022, Binance Chain (renamed BNB Beacon Chain) and Binance Smart Chain (renamed BNB Smart Chain) developed into a unified modular system called BNB Chain.
In early February 2023, the blockchain BNB Chain launched by Binance announced the white paper of the third blockchain-the decentralized storage infrastructure "BNB Greenfield", with the goal of allowing users and dApps to create in it , store and exchange data with full ownership to form a new data economy. This is the third chain using BNB as its native token after Binance Chain and Smart Chain.
2. The significance, value and repurchase mechanism of BNB on the Binance platform
(1) Discount on Binance platform transaction fees
For users who participate in transactions on the Binance platform, no matter what kind of token they trade, when they need to pay transaction fees, if they hold a sufficient amount of BNB, the system will provide a discount on the fees required (see the specific discount rate below) Table), and convert the equivalent amount of BNB according to the current market value, and use BNB to complete the payment of handling fees.
The discount will decrease each year until the fifth year of binance.
First year: 50% discount
Second year: 25% discount
Third year: 12% discount
Fourth year: 6.75% discount
Fifth year: no discount
(2) Buyback mechanism/destruction mechanism:
After the Binance platform is launched, 20% of the net profit of the Binance platform for the quarter will be used to repurchase BNB every quarter. The repurchased BNB will be directly destroyed. The repurchase record will be announced as soon as possible, and users can browse it through the blockchain. Server query to ensure openness and transparency until the total amount of BNB is destroyed to 100 million. In 2021, BNB will be automatically destroyed every day. The destruction will deflate BNB. In theory, if the total value of BNB remains unchanged, the destruction can cause the currency price to rise.
(3) Decentralized transaction “fuel” (GAS)
BNB is also the fuel for Binance’s decentralized on-chain trading platform. When using the Binance decentralized exchange platform, BNB is required. Including various diversified functions such as deduction of handling fees and rewards.
3. Issuance ratio
The distribution plan for the 200 million BNB tokens issued in July 2017 is:
Founding team (40% or 80 million BNB)
Angel investors (10% or 20 million BNB)
Public sale (50% or 100 million BNB)
The angel round and public sale of 120 million BNB, priced at 15 cents per token, raised a total of $15 million.
Fundraising from the public offering is earmarked for:
35 million BNB (35%) will be used to upgrade the Binance platform and trading system.
50 million BNB (50%) will be used for Binance branding and marketing.
15 million BNB (15%) as emergency reserve.
All initial coins have been distributed, so the liquidity supply curve is now flat. Distribution completion means there is no more illiquid supply.
4. Technical architecture
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(1) BNB smart chain
The BNB Smart Chain is based on the Proof of Stake (PoSA) consensus mechanism and is driven by a network of 21 active validators (2022). The largest validators by stake (including delegated stake) are responsible for validating transactions and generating blocks to ensure network security and maintain the ledger. In addition to the 21 active validators, the BNB Smart Chain has also introduced more inactive validators (called “candidates”) into the validator set. In this case, redundancy means that every hour two candidate validators and 19 active validators will be selected to join the consensus.
For their participation, validators only receive rewards from the gas consumption of transactions, not from newly issued tokens. Double signature detection and reduction mechanisms are implemented to ensure security, stability and finality.
In 2023, BNB Chain announced the 2023 technology roadmap, stating that it will strengthen decentralization, increase Gas limits, and double TPS. As of the end of 2022, the BNB Smart Chain has 29 active validators (21 cabinet validators plus 8 candidate validators), including top network providers such as Coinbase Loud, Figment, InfStones, Ankr, HashKey, NodeReal, BNB Chain will be decentralized in three ways. The 2023 technology roadmap regarding the BNB smart chain mainly includes:
1. Increase the number of nodes : By the end of 2023, it is expected to increase the number of active validators from 29 to 100, which will bring more robustness to the BNB Chain network. The more nodes there are on the network, the more resilient it is.
2. Introduce more consensus mechanisms : The verifiers of the Beacon Chain (a side chain focused on management, including staking and voting) (beacon chain mentioned below) will be open to the community. Currently, it is a group of trusted and Approved validators, and this group of validators can control who can join. Under the controversial voice, BIP-159 was proposed. In 2023, anyone can compete to become a validator (nodes with more stakes can be selected as the new validator).
3. Add on-chain governance : Voting and on-chain decision-making will be added to allow validators to have a say in the direction and operation of BNB Chain.
The gas limit starting in 2022 is 80 million, and then gradually increases to 140 million, which is approximately 4.6 times higher than the Ethereum network and is the largest of all EVM-compatible networks. Such a high Gas limit allows BNBSmart Chain to process more than 2,000 transfer transactions per second. In 2023, BNB Chain plans to further increase the block gas limit to 300 million. This will enable BNB Chain to support up to 5,000 transactions per second.
The BNB chain ecosystem evolves as its architecture evolves. While the ecosystem is expanding and consists of such applications, infrastructure, wallets, and tools, the initial traction in network activity stems from the launch of DeFi applications. Since the launch of BNB Smart Chain, the activity on the network has mainly come from DeFi activities, as the network now hosts more than 400 DeFi protocols (according to the DeFi Llama platform) as well as activity from around 1,000 projects in other fields. It is now the second largest network after Ethereum in terms of total value locked (TVL) and number of applications running on the chain. BNB Chain announced the 2023 technology roadmap to strengthen decentralization, gas restrictions, and TPS will be doubled (baidu.com) 
https://baijiahao.baidu.com/s?id=1757882319542646182&wfr=spider&for=pc
(2) BNB beacon chain
The BNB beacon chain is a side chain of the smart chain, mainly a DEX transaction matching engine built on a point-to-point distributed system. It connects multiple clients using Tendermint Byzantine Fault Tolerance (BFT) consensus. It has a built-in governance module that allows BNB holders to submit proposals for adding trading pairs and changing network parameters. One of the parameters is the amount of BNB burned for Beacon Chain transactions based on the fee schedule. There are also plans to implement listing assets for other chains. Ultimately, this combined approach allows Binance DEX to operate in a decentralized manner and enables the community to democratically change the beacon chain. It is managed in a way that brings value to the network and BNB tokens, while also delivering these functions to the BNB smart chain and BNB sidechains.
In June 2022, BNBChain announced that it would open source its beacon chain (BNB Beacon Chain) and BNBChain DEX, aiming to allow developers to reduce costs and further achieve decentralization. The Beacon Chain will open its verification node restrictions so that external nodes can become validators and participate in governance. Projects on the BNB Beacon Chain include BNBChain DEX, Binance Wallet, and BNBChain Staking.
(3) BNB Greenfield
1.BNB Greenfield’s own system
BNB Greenfield is a distributed storage service ecosystem that provides a scalable, efficient, and low-cost storage solution. In this sense, it is similar to IPFS (Interplanetary File System, distributed storage solution) .
The approximate structure is:
The first layer - the public chain used for accounting ( BNB Greenfield Blockchain)
The second layer - users who provide storage services (Storage Provider)
This public chain is used to record and store consensus metadata. BNB, as its native token for gas and governance, has its own governance logic. Storage Provider (SP) provides storage services and plays corresponding roles. Using GF public chain records, each SP can respond to users' requests for writing (uploading) and reading (downloading) data.
(The picture source is the same as the reference source below)
The complete BNB Greenfield system has joined the already relatively mature BSC public chain and BN community users to communicate with each other. When users want to create and use data on Greenfield, they can communicate with BNB Greenfield through BNB Greenfield dApps (decentralized applications). core infrastructure to interact with. There is a native cross-chain bridge between the GF chain and BSC.
The BNB Greenfield chain uses a POS mechanism based on Tendermint consensus to ensure its own network security, creating blocks every 2 seconds. Here, the responsibilities of the Validator of the GF chain and the SP are not the same.
The core functional modules of the BNB Greenfield system include:
Account module : used to manage users’ account information, including address, balance, etc.
Transaction module : Responsible for processing transaction information between users, including transaction amount, fees, etc.
Contract module : allows users to implement automated transactions and business logic through smart contracts, and can also be used to implement decentralized applications.
Application ecology : including the development and support of various applications and DApps (decentralized applications) to provide user functions and services.
Storage node : The storage module node is used to store data such as transaction information and account information on the blockchain. Nodes are responsible for the infrastructure for storing and retrieving data. Storage nodes can participate in the network in a variety of ways, such as using Binance-hosted cloud storage services, building their own storage nodes, or using third-party storage service providers.
Blockchain network : is used to record interaction information between storage nodes and users, such as storage and retrieval requests, reward mechanisms, etc. The BNB Greenfield storage project is developed based on BSC (EVM compatible). The validator election and governance are based on the proposal voting mechanism. It is revised based on the governance module of the Cosmos SDK. Anyone can create and propose to become a validator.
2. The significance of BNB Greenfield
First of all, the basic function of BNB Greenfield is distributed storage.
For example, using BNB Greenfield, anyone who has a BNB Chain address and holds BNB can:
1. Seamlessly store their data on BNB Greenfield using DropBox.
2. Deploy a website in just a few minutes without completing the tedious work of registering or binding a credit card.
3. Use an interface similar to AWS S3 to programmatically manipulate their data.
4. Store historical data of BNB Smart Chain and other infrastructure data of the BNB ecosystem.
Whether it is Web2 or Web3, storage is a rigid requirement. BNB Greenfield has taken into account the huge Web2 market from the beginning of its design. It uses currently popular APIs. Storage providers will charge fees in US dollars, but the payment will still be in BNB. Pay.
Secondly, the revolutionary nature of BNB Greenfield lies in its compatibility with smart contracts, which brings computing programming capabilities.
A consensus in the blockchain world is that data is also an asset, but for individuals, assets in centralized static storage cannot be monetized. It is just data and it is difficult to become a tradable asset.
BNB Greenfield allows smart contracts to interact with users' own data assets. Ownership and read permissions can be financially managed through NFT by the EOA wallet on the BNB smart chain, realizing that data is owned by individuals and at the same time allowing data to be owned by individuals. Being tradable gives it financial properties.
To use the example in the white paper, when a writer puts the electronic version of his novel on a decentralized storage network, for the author, this storage network is simply a decentralized storage tool.
But in fact, this e-book contains a variety of rights and interests, including copyright, copyright, and film adaptation rights. These are all intangible assets that can directly bring benefits. Traditional storage public chains alone cannot turn it into a financial asset. At this time, BNB Greenfield jumped out and said, Come to me, I will not only help you store it, but also sell your works directly on the BNB Smart Chain through smart contracts to help you make money.
In terms of specific implementation, the author can store and encapsulate the created novel on Greenfield, and then map it to BSC, and change the reading access right to Token or NFT on BSC. Users can only have access to the novel if they purchase a certain Token or NFT with BNB. File rights, so that the novels in storage become assets that can bring revenue.
Another important scenario is decentralized social networking.
Currently, a major problem that plagues various decentralized social protocols and products is how to store social data. Of course, it is impossible to store all of it on the chain. It is more of a composite model that records identity information on the chain and stores data off the chain. .
The emergence of BNB Greenfield provides a new possibility for decentralized social media.
Users can own their own data on BNB Greenfield and store their social graph in a decentralized manner, while different social media front-ends will facilitate users to build social networks, and can also pass any form of token through smart contracts Economy to manage fans and subscribers.
3.Greenfield and BNB Ecology
There is a native cross-chain bridge between the Greenfield blockchain and BSC. The combination of the two can make things happen. BNB Smart Chain provides project resources and traffic for BNB Greenfield, and BNB Greenfield helps projects on BNB Smart Chain proceed better. Cloud storage, as well as bringing utility and financialization opportunities to the data in storage, and programmability to data ownership.
BNB Greenfield did not issue new native assets, but continued to use BNB as the core token. One token is used by three public chains.
Since then, the three public chains of BNB Chain have linked three public chain worlds respectively, forming an ecosystem:
1. BNB Beacon Chain is developed based on Cosmos-SDK and can be linked to the Cosmos ecosystem through IBC;
2. BNB Smart Chain is compatible with EVM and can be linked with other EVM compatible chains and Layer2;
3. BNB Greenfield combines smart contracts with decentralized storage based on the proof of equity of the Tendermint consensus.
In the economic model design of BNB greenfield, users rent storage space and pay BNB; nodes provide the security of the public chain, and the income is BNB; similarly, the income provided by storage service providers is also BNB. In the future, more node services, pledge mining After the mine is launched, it can also drive financial demand for BNB lending.
As the native token of the storage chain, BNB is used for governance and payment of GAS, and can flow between BSC and Greenfield, so this perspective is another value empowerment for BNB. Participants in the entire Greenfield ecosystem are as follows. BSC is responsible for dapp deployment, data resource mirroring, cross-chain and consensus, while Greenfield is responsible for payment, data resources, cross-chain and consensus.
Reference sources:
Interpreting Greenfield: What impact will it have on the value of BNB? (baidu.com) https://baijiahao.baidu.com/s?id=1759617972243844562&wfr=spider&for=pcIn-depth analysis: Is BNB Greenfield undervalued? (baidu.com) https://baijiahao.baidu.com/s?id=1758130502422237863&wfr=spider&for=pc
A growing giant - BNB chain - Zhihu (zhihu.com) https://zhuanlan.zhihu.com/p/537458874