Difference between BNB and Wrapped BNB

Difference between BNB and Wrapped BNB

Binance Coin was created in July 2017. Initially, it worked on the Ethereum blockchain using the ERC20 token before it became Binance’s native currency on its own blockchain, called the Binance Chain.

Some differences between BNB and wrapped BNB

As I mentioned above, wrapped BNB is the updated version of BNB. So what was the need to launch wrapped BNB by the Binance Company? As an investor or out of curiosity, you might be wondering this. So, lets’ discuss the differences that are between BNB and wrapped BNB, and because of that wrapped BNB was launched in the market.

Association

One of the main differences between BNB and wrapped BNB is that BNB is normally not related to the BEP 20 standard.

Currency exchange

Since BNB is not tied to the BEP 20 standard, these currencies cannot be used with most cryptographic tokens.

However, due to the BEP 20 standard, unlike BNB, wrapped BNB can be used in the Binance Smart Chain and exchanged for any type of cryptocurrency.

Creation

As mentioned above, Binance created wrapped BNB for a specific purpose. Usually, the BNB or Binance Coin was technically created right after the start of the Binance chain.

This special chain allows users to exchange, dispense and use digital currencies on the blockchain easily. It uses its only national currency, BNB, for all activities.

On the other hand, after the launch of Binance Smart Chain, the wrapped NBB was created. This particular chain is usually a dual chain system that Binance is working on right now.

This is another blockchain that runs in parallel with the Binance ecosystem. This special blockchain allows programming on Binance Chain and the Smart Chain function supports a large number of Smart Contracts.

It also supports EVM or Ethereum Virtual Machine, in addition to performing your traditional tasks. So what was needed was wrapped BNB which can act much more like BNB on steroids.

Applications

Another key difference between wrapped BNB and traditional Binance coins lies in their respective uses. As already mentioned, Binance Coins do not comply with the rules of the BEP 20 standard and therefore cannot be used by other applications.

By comparison, Wrapped BNB follows the BEP 20 standard, which is ideally an extension of the ERC 20 standard, allowing it to be used by other wallets and applications such as DEX with any type of crypto token on the Binance Smart Chain.

Need

Generally, encryption users need the wrapped BNB to fulfill all these different BNB purposes, but without diminishing the value of the latter. It also helps further the growth of the Binance ecosystem.

In comparison, neither of these purposes can be achieved with Binance Coin. Also, BNB does not allow you to trade Altcoins directly, which are generally available on the Binance exchange platform, unlike wrapped BNB.

Blockchain Difference

Both Binance Blockchain and Binance Smart Chain appear to be the same to most users, but differ significantly, although both types can communicate with each other simply and natively. The

Binance Chain, on which Binance Coin works, usually comes with an archaic and simple design. The main objective of this blockchain is to speed up the trading process and increase the ability to process multiple orders from several million users on the Binance platform.

On the other hand, the Binance Smart Chain that the wrapped BNB token works on has a much more sophisticated design and more advanced functionality. This particular blockchain was typically designed as an open-source, community-based project.

The main function of this particular blockchain is to create complex decentralized applications and execute smart contracts. This further extends the functionality and performance level of the Binance Chain.

Statistical Differences

There are some key statistical differences between BNB and wrapped BNB including price, market capitalization, and other aspects.

For wrapped BNB, the price is 492,369, the market capitalization is 3,381,999,035, the value of the tokens in circulation is 6,868,830, and the trading volume is 672,277,433, all in US dollars as of September 10, 2021.

Compared to The Price of Binance Coin is 493,210, its market capitalization is 82,926,809,853, the available offer is 168,137,000, and the trading volume is 2,334,860,000 as of September 10, 2021.

All of these values are in USD and as of this writing, vary every day. Therefore, it is advisable to consult the charts before investing.

Which is better – BNB or wrapped BNB?

As you all may know, Binance is one of the most popular and widely used crypto platforms. It has always tried to improve its services to provide a better experience and convenience to users.

The latest of its improvements allows users to safely package Binance Coins.

Although both BNB and wrapped BNB differ in several respects, one cannot be said to be better than the other. Which one is better varies according to your needs and preferences!

For example, if you are comfortable with a standard token that is not BEP 20, you can choose the Binance coins you want to trade or go for wrapped BNB tokens.

Also, wrapped BNB tokens allow you to trade a large number of cryptocurrencies, including altcoins, increasing your chances of making more profit.


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