Binance Coin (BNB) was created by the popular cryptocurrency exchange Binance as the native token for their platform. While BNB was originally intended to be used for paying fees on Binance, the coin has expanded far beyond just the Binance ecosystem over the years.
BNB now powers an entire blockchain network called Binance Chain that facilitates creation of new tokens and decentralized apps (dApps). The coin can be integrated by merchants, apps and protocols seeking to leverage the large user base and liquidity available through Binance and Binance Chain.
Integrations for Payments and Commerce
One of the most common integrations for BNB is as a payment method on e-commerce platforms and with online merchants. The ability to instantly send BNB anywhere in the world with low fees makes it appealing as a checkout and payment option.
Services like PayTrie and Koinal act as fiat-to-crypto gateways and allow merchants to accept BNB payments from customers. Well-known brands like electronics retailer Newegg and luxury watch dealership Chronext have integrated BNB payments through such providers. Travel booking platform Travala.com also accepts BNB as a payment method.
For merchants, integrating BNB can open up a new customer base in the crypto community. It also allows tapping into emerging markets where bank account ownership is low but smartphone usage is high.
As Vansh from Koinal explained:
"Integrating crypto payments allows online businesses to be part of financial inclusion. Even unbanked users can participate in the global digital economy with just a smartphone."
Accessing Binance Chain Ecosystem
Protocols and dApps can integrate BNB as a utility token to gain easy access to the liquidity and user base on Binance Chain.
New tokens issued on Binance Chain get listed on Binance's decentralized exchange. This gives them immediate potential to be traded by millions of users. Protocols can leverage the Binance brand to bootstrap adoption for their decentralized apps.
For example, gaming dApp Froyo Games built on Binance Chain to gain exposure to Binance users interested in blockchain gaming. Its FROC token gets listed on Binance DEX upon issuance.
In a similar vein, savings protocol Venus integrated BNB as an asset option. Users can earn interest by lending out BNB. This taps into strong demand from margin traders on Binance looking to borrow the coin.
Unlocking Discounts and Privileges
Loyalty and rewards programs integrated with BNB provide discounts or exclusive privileges to BNB holders.
- Travel platform TRAVALA offers discounts on hotel and flight bookings if users pay with BNB.
- Crypto tax software CryptoTrader.Tax gives 25% off on subscriptions for customers paying in BNB.
This incentivizes users to hold BNB for the additional utility it unlocks. It can create stickiness and increase usage of the partner platform.
Simplifying Contract Interactions
Some decentralized apps are integrating BNB as "gas" to power interactions and transactions on their platforms.
Instead of managing protocol-specific tokens for gas, apps allow using the widely available BNB for this purpose. It lowers friction for users by removing the need to purchase and manage different gas tokens.
For instance, decentralized crowdfunding platform Seedify uses BNB to power its ecosystem. Users can create campaigns, back projects, and interact seamlessly just using BNB without buying additional native tokens.
As Adrien from Seedify explained:
"Integrating BNB as gas simplifies the experience for users. They don't have to worry about getting project-specific tokens to pay gas fees."
The Bottom Line
The utility and adoption of Binance Coin continues to grow through creative integrations beyond just Binance exchange. Merchants are using it for payments, protocols leverage it for liquidity and users, while apps build on Binance Chain to benefit from the ecosystem.
With its brand recognition and large user base, we can expect Binance Coin's integrations and use cases to expand even further. The coin's role is evolving from a simple exchange token to a meaningful cryptocurrency driving real-world adoption.
Which types of apps can benefit most from BNB integration?
Decentralized finance (DeFi) applications stand to gain the most from integrating Binance Coin. Here are two reasons why:
- Access to Binance liquidity pools: BNB provides easy access to Binance's liquidity pools for lending, borrowing or margin trading. DeFi apps can tap into these pools by adding BNB as a supported asset.
- Lower user onboarding friction: By integrating BNB for gas fees or payments, DeFi apps can leverage its availability and avoid introducing new tokens that add friction during onboarding.
DeFi users are already familiar with handling BNB for trading or transfers. Supporting it as gas or payments can thus smoothen the initial learning curve for new DeFi users. This makes the integration especially impactful for DeFi applications looking to expand their user base.
What are some emerging use cases for the BNB coin?
Some emerging use cases that can expand utility for BNB holders include:
- NFT purchases on Binance NFT marketplace: As NFT adoption grows, BNB can be integrated as a payment option on major NFT marketplaces like Binance NFT to boost its utility.
- Staking for parachain slots: BNB can be staked to crowdloan parachain slots on interconnected blockchains like Polkadot. This provides an earning opportunity for BNB holders.
- Metaverse interactions: Virtual worlds and metaverse games can integrate BNB for in-app interactions like asset purchases, unlocking content or avatar customizations.
- Fiat on-ramps: As crypto adoption grows, BNB on-ramps through integrations with payment apps, retailers and remittance providers can significantly expand accessibility in emerging markets.
- Lending in DeFi protocols: BNB's integration in decentralized lending protocols like Venus demonstrates potential to serve as a popular asset for earning yield through lending.
Expanding real-world utility is key for the long-term viability of any cryptocurrency. Binance Coin has shown promising progress on this front with its growing integrations. More use cases like the above will help cement its position in the broader crypto economy.