I made my research about the computer science behind the Binance token and you are about to find out the truth about mining BNB, So stick around this article and read more below.
BNB is owned by one of the top cryptocurrency exchanges named Binance, which launched Binance coin in 2017 as an initial coin offering (ICO) on the Ethereum blockchain and later migrated into the Binance chain in 2019.
With BNB, users can pay for transaction fees on the Binance exchange.
Can you mine BNB?
Based on the fact that BNB was created with a strict limit of 200 Million BNB (200,000,000 BNB) never to be increased.
Which means no new coin can be created, This makes it impossible to mine Binance coin.
And also the Binance chain runs on the byzantine fault tolerance which is a different consensus protocol than Bitcoin.
So the answer is “No you can’t mine BNB” because the developers already created a limit of coins to be available.
But you can still earn rewards by either being a validator or a holder of the BNB, Below I talk about how you can earn BNB without mining.
During the BNB ICO, they pre-created the coins and sold 50% of the total 200 million BNB at the initial coin offering.
How to mine Binance coin
Let me guess you wish to earn rewards by Mining BNB right? Well, too bad Binance has already created all the coins they need in existence as described by their white paper.
Bitcoin transactions are confirmed and added to the blockchain by miners while for the case of the Binance chain the network transactions are verified by Validators who you can also call Miners.
- The difference between Miners and Validators is that miners create new coins into existence while validators only confirm transactions on the network but they both earn rewards.
Can I be a BNB Validator?
The initial validators are selected from trusted members of the Binance community, and will eventually expand to more members as the Binance blockchain and ecosystem matures, this responsibility will be distributed. The decentralized governance procedure will be introduced and executed. More qualified organization/individual can become Validators.
Due to the above statement from the Binance chain, It is currently not possible to become a BNB validator unless you are a member of the Binance community but in the future, it would be possible.
How can I earn with Binance coin?
Since you can’t be a validator anytime soon, let’s talk about other ways you can make money with the BNB.
If you read up to this point then I guess you probably have some BNB already or planning to purchase the coin.
Well go ahead and purchase Binance coin if you don’t already have possession of the coin then Hodl in hope for an increase in price.
Holding a coin for a long term is all about determination and for the case of Binance coin, It is predicted to increase in value in the future, So it wouldn’t be a bad idea to buy and keep the coin just in case the price increases, you will make profit.
How much is BNB worth?
The Binance coin is a well known valuable asset in the crypto/altcoins sphere but how much exactly is the BNB worth?
Note that BNB is not a stable-coin which means the price never remains the same due to demand and supply, the market is a volatile one.
To see the current price of BNB always check Coin market cap BNB page.
At the time I’m typing this, BNB is currently $23.40, remember to always check as this price changes rapidly.
What is BNB used for?
Every valuable asset is known for its use cases and so does Binance coin.
BNB is used for transaction fees on the Binance exchange as a way for users to pay when they either buy or sell a coin on the Exchange.
Having read through this article I’m sure you understand why BNB can not be mined and a more possible way to benefit from the coin.
My research started from the whitepaper which made me understand that the developers of Binance coin already created a strict limit of coins to be 200,000,000 ( Two hundred million BNB )
So there you have the answer to How To Mine Binance Coin, Thanks for reading and hope you would share using the social media buttons below.