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The Binance coin, called BNB, is the primary token used in the BNB Chain ecosystem created by the cryptocurrency exchange platform Binance. BNB Chain is an ecosystem of blockchains that includes BNB Beacon Chain, BNB Smart Chain, ZkBNB, and BNB Greenfield. 

The native token BNB also serves as a utility token that provides users with discounts on transaction fees when trading on the Binance platform. BNB has been integrated into different facets of the Binance ecosystem, expanding its usefulness.

A Brief History of BNB

BNB was created and launched in July 2017 by Binance, one of the biggest cryptocurrency exchanges. The Binance coin (BNB) was initially created as an ERC-20 token on the Ethereum blockchain.

In April 2019, Binance launched its own blockchain network, known as the BNB Chain. BNB was migrated from the Ethereum network to its native blockchain. This migration enabled BNB to be used for other purposes beyond just transaction fee discounts. 

Similarly, in September 2020, Binance introduced the Binance Smart Chain (BSC), another blockchain parallel to the BNB Chain. The BSC blockchain was rebranded as the BNB Smart Chain in 2022.

The BNB Smart Chain supports smart contracts and decentralized applications (dApps). This blockchain operates on a Proof of Staked Authority (PoSA) consensus mechanism. In PoSA, the authority nodes, also called the validators, are selected based on both their stake (the amount of cryptocurrency they hold) in the network and their reputation or identity. This reputation is earned by efficiently performing validation assignments.

The PoSA consensus mechanism ensures that blocks are produced by a limited set of validators, thus enhancing efficiency. The BNB Smart Chain blockchain can handle up to 100 transactions every second, making it a good choice for dApps and gaming platforms that require high-speed and low-cost transactions.