Binance Rebrands Its BNB CoinFebruary 16, 2022 9:48 pm
Binance is currently the largest cryptocurrency exchange by transaction volume and is also well known for its own blockchain ecosystem called Binance Smart Chain that utilizes its own native BNB token.
BNB is currently ranked as the 4th largest blockchain directly after Tether and has a total market capitalization of $71 billion.
However, the company is now renaming the blockchain as the BNB chain and the Binance coin (BNB) now as “Build and Build”.
The move suggests that Binance is trying to separate itself from being associated with the blockchain and the coin in an effort to suggest that the network’s utility can go beyond just being an exchange utility token.
— Blockworks (@Blockworks_) February 15, 2022
“Over the years, we’ve realized that BNB has evolved into something beyond Binance and in fact, BNB means Build and Build (not Binance Coin), it’s something CZ has tweeted before,” Samy Karim, BNB Chain ecosystem coordinator, told The Block.
“The BNB ecosystem is bigger than Binance, and has transcended Binance in terms of its use cases.”
The official announcement comes a week after Binance CEO Changpeng “CZ” Zhao tweeted that BNB stands for “Build’N Build,” i.e., build the community and let the community build.
The removal of the Binance name will provide BNB Chain “with more opportunities and freedom to seek innovations,” said the company. BNB Chain will also become multi-chain, it added.
“BNB Chain will embrace large-scale applications, including GameFi, SocialFi and the Metaverse.
In particular, scaling from one chain to multi-chain, improving scaling solutions and expanding the validator set of BSC from 21 to 41 (with 20 validators functioning as candidate block producers),” said Karim.
The name change of its blockchain ecosystem is not the only thing that Binance has been experimenting with in recent months.
The company has been trying a new concept called “MetaFi” which is essentially a combination of the key words metaverse and finance.
This MetaFi project will focus on building the core infrastructure of the ecosystem in order to be able to support a wide variety of different crypto related projects in the future which includes NFTs, Web3, and decentralized applications of all sorts.
Binance believes that this will most likely be the direction of the future where different blockchains and projects will be connected and communicate with each other as opposed to a single blockchain being used.
The end result would be a parallel based ecosystem where there will be multiple key blockchains that users will interact with.
— Business Today (@business_today) February 16, 2022
The rebranding might be very beneficial to the network and could encourage more growth now that it’s not directly linked to Binance. Binance Smart Chain has been criticized on multiple occasions for being too centralized, leading to several exploits on the network.
With the rebranding, which also includes plans to increase the number of validators, the network will become more decentralized.
Binance also coined the MetaFi concept to describe what the BNB Chain ecosystem could provide. The word combines Metadata and DeFi and simplifies the BNB Chain community goal to have the infrastructure for projects on one network.
As of press time, the BNB is currently the fourth largest crypto asset by market cap, and its value has risen by 0.5% within the last 24 hours to $432.
This price movement has likely been swayed by the general market sentiments, which have added 1.5% to the overall market cap of the industry.
— CryptoMoticons (@crypto_moticons) February 15, 2022
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