BNB, formerly known as Binance Coin, itself is a utility token of the Binance Exchange, which is represented in 2 variations on different platforms: BEP2 and BEP20. BNB Coin BSC is built on a BEP20 standard, which is more like Ethereum’s ERC20 standard. Despite the fact that both Binance tokens have the same ticker, they differ a lot.
BNB Smart Chain, formerly known as Binance Smart Chain, was launched in September 2020 as a parallel network to the Binance Chain. The idea behind BNB Smart Chain was to make a programable blockchain, like Ethereum, with smart contracts execution and staking. There are some fundamental differences between BNB Beacon Chain and BNB Smart Chain. First of all, the consensus algorithm was changed from Delegated Proof of Stake (DPoS) to Proof of Staked Authority (PoSA), with BFT transformed into Tower BFT. One of the most important features of the BSC is its full compatibility with Ethereum’s EVM.
BNB BSC could be used not only for a value transfer but also for running smart contracts and powering apps on BSC. The other way to utilise BSC is to pay fees on BNB Beacon Chain with BSC tokens. Last, but not least is tokens superpower to reduce trading costs on the Binance exchange.