What is Wrapped BNB (WBNB)?
For starters, let's make things clear – Binance, which is one of the biggest crypto exchanges out there, runs a dual-chain system. It has the Binance Chain and the Binance Smart Chain (BSC). The native token of the Binance Chain is BNB and it can only be used on this chain. Wrapped BNB (BNB), on the other hand, complies with the BEP-20 token standard, and thus, can be used on BSC. In essence, Wrapped BNB is like an advanced version of BNB because it has way more capabilities.
Interested in the current Wrapped BNB price? Check out the WBNB price chart above.
What's the difference between these two chains though? Well, the major goal of Binance Chain is to quickly execute trades and manage a large volume of orders from several million Binance users. The Binance Smart Chain, on the other hand, is a considerably more sophisticated blockchain. Its purpose is to expand the capabilities of Binance Chain by running smart contracts and building advanced decentralized applications (dApps).
Wrapped BNB Use Cases
Wrapped BNB provides a way for users to make transactions across multiple blockchains. This means that they can switch from one network to another while still being able to complete their financial transactions. Unlike the BNB token, Wrapped BNB allows users to trade directly with altcoins available on the Binance exchange.
Furthermore, Wrapped BNB can help to alleviate the liquidity issues that come with using other cryptocurrencies when making transactions. Ethereum, for instance, is pricey to utilize due to its high fees. To reduce this cost substantially, one can switch their Ethereum into Wrapped BNB and then complete the transaction. Afterward, the receiver of the funds can convert back from Wrapped BNB into Ethereum – drastically cutting down on costs in the process.
Additionally, Wrapped BNB provides quick transaction services. The exchange of cryptos like Ethereum can take a long time on their own platform. If the currency is changed to the Wrapped BNB coin, however, the trade can be done on another website and then transferred back into its original form with very low fees and much faster speeds.
Finally, Wrapped BNB crypto assets also provide an extra layer of security compared to the standard BNB. While BNB is already secure enough, wrapping it with a private key gives users more control over their accounts and makes it less likely for hackers to target them.
Interested in acquiring WBNB tokens? Don’t forget to observe the live Wrapped BNB price chart. It's great for making a thorough WBNB price analysis.
Who Founded Binance?
Changpeng Zhao (often referred to as CZ) is the founder of Binance. He is a Chinese-Canadian business executive who has over 20 years of experience in technology and finance, having previously worked at Bloomberg Tradebook, Fusion Systems Ltd., Blockchain.info, and OKCoin. In addition to his role at Binance, Changpeng also serves as a member of the board of directors for several blockchain projects, including the Tron Foundation and the Blockchain Charity Foundation.
