The Binance Ecosystem: History, Services, Features
The system offers a unique portfolio with various financial products and tools useful for both novice traders and skilled investors. The system provides all kinds of solutions for users: trading, education, research, philanthropy, investment, business incubation and others.
How It All Started
Binance, a crypto exchange providing traders and investors with the widest range of services, was founded in 2017 by Chinese entrepreneur Changpeng Zhao. In the community, he is commonly known as CZ. The businessman spent several years developing software that allowed him to buy and sell futures on Wall Street.
In the early 2000s, CZ led a team of researchers at Bloomberg Tradebook Futures, then founded Fusion Systems in Shanghai, joined at Blockchain.info as a technology director and was involved in the development of other blockchain projects.
In the months following the creation of Binance, Zhao attracted about $15 million from 20,000 private traders and investors. All thanks to a successful ICO. The exchange was used more actively than initially expected – by January 2018, it had become a global leader in terms of trading volumes. At that time, the registration of new accounts was suspended as a means to update and expand the capabilities of the ecosystem architecture. A few days later, registration resumed and the platform added 240,000 users within an hour.
As of early 2021, Binance had the following statistics:
- spot trading: the maximum daily volume reached $15 billion;
- trading volumes: the average was $3,89 billion per day;
- number of users: 16,7 million;
- number of assets: more than 180 tokens, over 590 trading pairs;
- multilingual: the website interface is available in 38 languages, technical support is available in 11 of those.
Binance Financial Tools
The Binance ecosystem today includes a variety of financial instruments.
Earn. It’s a versatile service that gives earning possibilities for cryptocurrency hodlers. Dozens of financial products are offered for this purpose. By transferring one of the 60 types of tokens into a specific product, one will just have to watch their funds grow. A hodler must have a minimum amount of money available to use the tool, which can vary depending on the tokens.
Smart Pool. It’s a service that enables users to get higher profit by auto-switching hash rate for mining BTC, BCH or BSV based on the SHA256 algorithm. The final mining income is settled in BTC. By the real-time hedging of the Smart Pool, a minimum amount of final mining income is guaranteed. To switch between the general mining and the Smart Pool, you need to activate the tool.
Binance Card. The non-profit foundation has launched its own Visa debit card service with a crypto account that can be used to pay for goods or services at 60 million stores and businesses from around the world. Users’ spot wallets are used to store the money.
Crypto Loans. Users who engage in spot, margin or futures trading can use the cryptocurrency loan tool at any time. The loan can be taken for a period of 7, 14, 30, 90 or 180 days. Interest is calculated hourly. You can repay the debt at any time you choose with an option to delay up to three or seven days with a triple interest rate.
Liquid Swap. This refers to a useful tool that allows you to instantly trade and earn by placing tokens in the pool.
Binance Pay. This service enables contactless and secure international payments in digital currencies on the Binance exchange. The tool allows you to pay for purchases without commission, send crypto to relatives or friends and give tokens. Payment transactions are instantaneous. To comply with regulatory requirements, the credited amount can only be used after 24 hours.
Binance Coin (BNB), considered the most popular among utility tokens, was created within the ecosystem. This digital currency can be bought and sold, exchanged for other tokens, one can pay for goods or services with it, pay transaction fees in the Smart Chain service, etc.
To maintain the value of the cryptocurrency and support markets, the developers are organizing the quarterly BNB burn. The calculation of the number of assets to be burned depends on the volume of trading on the exchange. The maximum possible number of total tokens burned during the entire time can be no more than 50% of the total issue volume.
The ecosystem unit has also created its own Binance USD stablecoin (BUSD), backed 1:1 by U.S. dollars. The token has been approved by the New York State Department of Financial Services, with Paxos being the issuer.
The Binance Ecosystem
The Binance ecosystem includes a range of services:
- Binance Chain. A secure public blockchain system with instant transactions. On its basis, it issues tokens of the BEP-20 standard.
- Binance DEX. A decentralized crypto exchange with a distributed network of nodes that users can use to store private keys and manage their own wallets.
- Binance Smart Chain. A digital environment for decentralized applications based on smart contracts. Compatible with EVM (Ethereum Virtual Machine).
- Binance Labs. A special fund that aims to improve the infrastructure of the ecosystem. Its primary strategy is to invest in blockchain startups to develop the crypto community.
- Binance Launchpad. A platform for IDO token sales.
- Binance X. A division for blockchain development and innovation, the Trust Wallet Core system and the Charity Foundation.
- Binance Cloud. A platform for running exchanges, trading digital and fiat currencies.
- Binance Info. A kind of crypto encyclopedia for theoretical information, white papers, industry news, market data, independent rankings, digital asset reports and expert commentary.
- Binance Academy. A learning center that provides free access to a one-stop library with every material focused on learning about blockchain.
- Binance Charity. A non-profit foundation that aims to develop various sectors of the economy through the implementation of blockchain technology.
- Binance Research. A service providing expert information and analysis which will be interesting for crypto traders, brokers, analysts, researchers and other specialists.
- Binance NFT. A marketplace where digital art and collectibles are generated and sold.
Growing trends and the Binance ecosystem’s further development provide an opportunity to trade, invest and exchange digital currencies. These factors also enable an economic, informational and technological foundation for the industry’s growth.