What Are the Differences Between Binance and BNB Chain? (2024)

BNB

by Samuel Mbaki

October 28, 2022

Binance is a centralized company operating the world's largest crypto exchange. BNB Chain is a decentralized blockchain network.

How Binance and BNB Chain Are Related

While it is easy to conflate Binance with BNB Chain, they are separate entities and do not have the same relationship as, for example, the Ethereum Foundation and Ethereum.

The world’s largest cryptocurrency exchange Binance launched BNB Chain in February 2022, consisting of BNB Beacon Chain (previously Binance Chain) and BNB Smart Chain (previously Binance Smart Chain).

Recently, Binance published a blog clarifying the distinctions between the company and the blockchain:

"Above all else, Binance is but a part of the BNB ecosystem, rather than the other way around."

Below we will highlight the main characteristics and differences between the two influential blockchain entities.

Binance Exchange

Binance is a Centralized Exchange launched by Changpeng Zhao (CZ) and Yi He in 2017.
Zhao has served as its CEO since launch.
Binance has become by far the world’s largest crypto exchange according to metrics such as trading volume, traffic, users and more.
The exchange also has an American counterpart, Binance.US, that is under independent management.

BNB Chain

Binance launched Binance Chain in April 2019, switching over the BNB utility token from Ethereum (where it had launched in 2017).
Smart contract-compatible Binance Smart Chain was launched in September 2020.
In February 2022, BNB Chain was launched, combining and renaming the two chains.
BNB Chain is the most popular blockchain, with 4 million daily transactions, more than 200 million unique addresses and nearly 1.4 million contracts, according to information from BSCScan and Solidus Labs.

Differences

Here are the key differences between Binance and BNB Chain:

Binance is a crypto exchange, while BNB Chain is a decentralized blockchain network.
Binance is the parent company that came up with the idea of developing the BNB Chain.
Binance is a centralized company, while BNB Chain is a decentralized blockchain on its way to 41 validators.
BNB is the native token of both Binance and BNB Chain, but it runs on BNB Chain.

Author

Samuel Mbaki

Samuel is a passionate blockchain reporter with an experience of about four years. His fascination with technology is what brought him to the crypto space. Since then, he has researched, learned about it, and educated others through his writing skills.

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FAQs

What Are the Differences Between Binance and BNB Chain? ›

BNB Chain is a blockchain network, while Binance is a cryptocurrency exchange. Binance is a centralized company that operates the world's largest crypto exchange whereas BNB Chain is an EVM-compatible Layer 1 Blockchain. Binance can use chains including BEP 20, ERC, TRC, etc whereas the BNB Chain uses BNB Smart Chain.

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Are BNB and Binance Smart Chain the same? ›

Due to the network's high transaction speed, low transaction cost, and EVM compatibility, BSC quickly gained traction as the DeFi movement took off and Ethereum suffered from chronic congestion and high fees. In February 2022, Binance Smart Chain was rebranded as BNB Smart Chain.

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Is BNB chain owned by Binance? ›

Binance Does Not Own or Control BNB Chain

While Binance introduced the original idea and remains a supporter, its vision for BNB Chain was for the network to be decentralized and independent. BNB Chain operates with a community-driven approach, allowing anyone to become a network validator through BNB stakes.

What does BNB chain mean? ›

BNB Chain is a blockchain created by Binance (BNB 1.99%), the world's largest cryptocurrency exchange by trading volume. The blockchain is fueled by BNB, formerly known as Binance coin. It's a decentralized, open-source ecosystem that helps users create, store, and exchange data.

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What makes Binance different? ›

Range of Trading Options

One of the key factors differentiating Binance and Binance US is the variety of cryptocurrencies available for trading. The range of trading options offered by an exchange platform often influences an investor's decision when choosing between different platforms.

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What is Binance Smart Chain called now? ›

The Binance Smart Chain (BSC) is now the BNB Chain. BSC, crypto exchange Binance's layer-1 blockchain, recently announced the merger of the Binance Smart Chain and the Binance Chain to form the BNB Chain.

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Is BEP20 the same as Binance Smart Chain? ›

BEP-20 is a token standard extending Ethereum's ERC-20 standards. It is the token standard powering the Binance Smart Chain.

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Is Binance legal in the US? ›

Binance is unavailable in the United States. However, its subsidiary, Binance.US, is available in most states. In a handful of states, Binance.US is available and legal but had temporarily paused the onboarding of new users as of May 2024.

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Should I swap BNB beacon chain to smart chain? ›

As the BNB Beacon Chain will shut down in late June 2024, the LIQUID app will not be able to broadcast transactions to the blockchain. If you hold BNB on the Binance Beacon Chain, you must transfer it to the Binance Smart Chain (BSC) before the fusion to ensure you preserve your tokens.

What happened with Binance? ›

The CFTC brought civil proceedings against Binance in March 2023 for failing to put in place an anti-money laundering program that would have identified and stopped dirty money transactions such as the financing of terrorism and illicit drug sales.

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Is the BNB chain safe? ›

BNB Chain accounts for 0.9% vulnerabilities of the entire ecosystem based on the TVL in Q1 2023. The BNB Chain, despite its significant economic activity, exhibited remarkable security during Q1 of 2023.

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Who is the owner of BNB chain? ›

Binance is owned by the Chinese-Canadian businessman and investor Changpeng Zhao, also known as CZ. He is the founder and CEO of Binance, which was launched in 2017.

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How much is $1 BNB in USD? ›

$549.03

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What is the disadvantage of Binance? ›

Cons of Binance

Limited Fiat Options: The selection of supported fiat currencies may be limited. Risk of Hacks: Binance has experienced security breaches in the past. Withdrawal Fees: Binance may charge withdrawal fees for certain cryptocurrencies.

What is the difference between BNB and Binance? ›

Some of the key differences between Binance and BNB Chain are: BNB Chain is a blockchain network, while Binance is a cryptocurrency exchange. Binance is a centralized company that operates the world's largest crypto exchange whereas BNB Chain is an EVM-compatible Layer 1 Blockchain.

Is it better to use Coinbase or Binance? ›

If you're looking for a platform with low fees and comprehensive tools for experienced traders, Binance might be the better choice. However, if you're a beginner looking for a user-friendly platform with a strong reputation and regulatory compliance, Coinbase is likely the better choice.

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Can you buy BNB smart chain on Binance? ›

Binance is a centralized exchange where you can buy several cryptocurrencies including BNB. Before you can use the Binance platform, you'll need to open an account and verify your identification. Choose how you want to buy the BNB asset.

Are BEP2 and BEP20 the same? ›

Blockchain Platform: BEP2 tokens are native to Binance Chain, while BEP20 tokens are native to Binance Smart Chain. Consensus Algorithm: BEP2 uses Proof of Work (PoW), while BEP20 employs Proof of Stake Authority. Transaction Cost: BEP2 tokens involve gas fees, while BEP20 tokens do not charge transaction fees.

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What is my BNB smart chain address? ›

Get Your BNB Smart Chain Address:

In the Trust Wallet app, tap on the 'Receive' button. Select 'BNB Smart Chain' from the list of supported cryptocurrencies. Your BNB Smart Chain address will be displayed as an alphanumeric string and a QR code. Share this address to receive funds.

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