## **What is BNB Token and BNB Smart Chain?** BNB Smart Chain, formerly known as Binance Smart Chain, is an Ethereum Virtual Machine (EVM)-compatible blockchain platform capable of running general-purpose smart contracts. It is a base layer, or Layer 1 (L1), part of the BNB Chain blockchain ecosystem developed with the support of the cryptocurrency exchange Binance. It is known for its fast transaction times and low transaction costs. The BNB token is the fuel for BNB Smart Chain. Originally known as Binance Coin, BNB has been renamed to “Build and Build.” In addition to serving as the “gas” token for BNB Smart Chain, BNB also grants holders on-chain governance rights. ## **What is BNB Token?** BNB is the native token of the BNB Chain ecosystem, which includes BNB Smart Chain (BSC) and BNB Beacon Chain. On BNB Smart Chain, BNB is used to pay transaction fees and participate in the network consensus mechanism. BNB is also used as a utility token that allows users to receive discounts on transaction fees when trading on the centralized cryptocurrency exchange Binance. Over time, Binance has expanded the functions of BNB, integrating it into various aspects of the Binance ecosystem, such as their decentralized exchange (Binance DEX), token launch platform (Binance Launchpad), and more. ## **How does BNB Smart Chain work?** BNB Smart Chain operates on a Proof of Staked Authority (PoSA) consensus mechanism that combines features of Delegated Proof of Stake (DPoS) and Proof of Authority (PoA). Validators are selected through staking-based governance, while “Candidates” act as reserves to maintain the functionality of the network when it is under stress. This hybrid approach ensures that blocks are produced by a limited number of validators, thus increasing efficiency and decentralization. With a short block time of 3 seconds, transactions can be confirmed quickly, providing a seamless experience for users. BNB Smart Chain supports smart contracts and EVM-compatible protocols, facilitating cross-chain transfers and other communications. The native token, BNB, is used for smart contract execution and staking. There is no inflation of the BNB token, meaning validators do not earn a block reward. Instead, validators are compensated in BNB through transaction fees for executing smart contracts, although a portion of these fees are redeemed by the BNB Chain protocol. ## **History of BNB Smart Chain and BNB Token** Cryptocurrency exchange Binance and BNB token were established in 2017. Initially, BNB token was an ERC-20 token on the Ethereum blockchain. In 2019, it migrated to Binance Exchange’s proprietary blockchain called Binance Chain, and later became the fuel for Binance Smart Chain (BSC), which was launched in September 2020. With its high transaction speed, low transaction cost, and EVM compatibility, BSC quickly gained popularity amid the rise of the DeFi movement and Ethereum’s chronic congestion and high fees. In February 2022, Binance Smart Chain was renamed to BNB Smart Chain. BNB Smart Chain is part of the BNB Chain blockchain ecosystem, which includes BNB Beacon Chain (the staking and governance layer), BNB Smart Chain (the smart contract execution layer), ZkBNB (a zero-knowledge proof rollup for scaling), and BNB Greenfield (a decentralized data storage platform). ## **How can you use BNB and BNB Smart Chain?** Anyone can buy, sell, send, receive, and hold BNB in ​​the [Bitcoin.com](http://Bitcoin.com) Wallet app. Advanced users also have the option to directly interact with Decentralized Apps (dApps) on the BNB Smart Chain network using the [Bitcoin.com](http://Bitcoin.com) Wallet (via WalletConnect). DApps on BNB Smart Chain enable DeFi use cases such as trading, lending and borrowing, prediction markets, crypto derivatives, synthetic assets, NFTs, and more. ## **Resources** For an up-to-date list of top decentralized applications on BNB Smart Chain, please refer to DAppRadar. To learn how to connect to dApps in the [Bitcoin.com](http://Bitcoin.com) Wallet app, please refer to this guide. For more information on BNB Smart Chain, please refer to this document. Connecting BNB Smart Chain to Ethereum You can transfer selected Ethereum crypto assets to BNB Smart Chain using the officially recommended Celer cBridge. The bridging process will take some time, which will be estimated by the bridge itself. After that, you can do most of the same things you would do on Ethereum like swapping, lending/funding, and adding liquidity to pools, but with much lower fees and faster transaction times. You can transfer your assets back to the Ethereum mainnet whenever you want.