What is BNB Chain and what is BNB?
BNB Chain is a blockchain network that runs smart contracts, and BNB is its native coin for fees and staking. Binance created it and launched it in 2020.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Binance created the chain; it launched in 2020 and was rebranded in 2022.
- People use it for DeFi, NFTs, games and token transfers.
- A limited validator group secures it, and BNB pays the fees.
The names confuse newcomers. Binance runs an exchange, BNB is a coin, and BNB Chain is the network the coin runs on.
What BNB Chain is and how it works
BNB Chain is a unified system that combines the original Binance Chain with BNB Smart Chain. It runs smart contracts written for Ethereum because it uses the same virtual machine. Validators produce the blocks, and the network picks them each day by how much BNB has been staked to them, a design called proof of staked authority.
What is BNB used for?
BNB pays for activity on the network. Fees are charged in BNB, and people also stake the coin to help secure the chain.
- DeFi apps for lending and trading
- NFT marketplaces
- Games that use tokens and in-game items
- Token transfers between wallets
Who created BNB Chain?
Binance created the coin and the chain. The project has changed names and parts more than once, so older guides can be out of date.
How BNB Chain differs from Ethereum
Both networks run the same kind of smart contracts. They differ in who secures the chain and which coin pays fees.
What legal risks has it faced?
US regulators sued Binance and its founder, Changpeng Zhao. The CFTC filed in March 2023 and the SEC in June 2023. Binance settled with the DOJ, the CFTC, OFAC and FinCEN in November 2023; the SEC case was not part of it. Zhao was sentenced in April 2024.
Frequently asked questions
No. Binance runs an exchange; BNB Chain is a separate network.
Yes. A self-custody wallet works with no Binance account.
Wallets built for Ethereum-compatible networks usually work, and you need BNB for fees.
Less than Bitcoin. A smaller validator group makes the blocks and halted the chain in 2022.
