BEP-20 is a token standard introduced by Binance Smart Chain (BSC) that extends the functionality of Ethereum’s ERC-20 standard. The acronym ‘BEP’ stands for Binance Smart Chain Evolution Proposal, and the number ’20’ denotes the proposal’s unique identity.
BEP-20 is a blueprint used for creating and issuing smart contracts on the Binance Smart Chain. BEP-20 tokens follow a specific set of rules that allow them to interact seamlessly with other tokens and dApps within the Binance Smart Chain ecosystem.
BEP-20 tokens can perform various functions such as being swapped with other BEP-20 tokens, used to pay for transaction fees, staked for liquidity mining, or simply held as part of a portfolio.
The Binance Smart Chain was developed with compatibility in mind, therefore, it supports both the BEP-20 and BEP-2 standards. As a result, tokens can exist both on Binance Chain and Binance Smart Chain and swap back and forth.
What is BEP20?
The BEP20 is a token standard for creating tokens on the Binance Smart Chain (BSC). Similar to the ERC20 token standard on Ethereum, BEP20 facilitates smart contract development on the Binance Smart Chain.
The BEP20 tokens are a type of crypto token that operate on the Binance Smart Chain. These tokens are similar to ERC20 tokens, but they are specifically designed to operate on the Binance Smart Chain.
XCN coin is an example of a token that adheres to the BEP20 standard, which is based on the Binance Smart Chain (BSC) blockchain. The BEP20 standard is designed to facilitate the creation and use of tokens on the Binance Smart Chain, similar to how ERC20 tokens operate on the Ethereum blockchain.
BEP-20 tokens represent a diverse range of crypto assets that reside on top of the Binance Smart Chain (BSC). BEP-20 is a technical standard used for all smart contracts on the Binance Smart Chain for token implementations.
BEP-20 is a BNB Chain token standard that was created with the intention of extending ERC-20, which is one of the most common Ethereum token standards. It provides a blueprint for how a token can be spent, who can spend it, and defines rules about its overall usage.
What are the Benefits of Having BEP20 Tokens?
BEP20 tokens offer several benefits for users.
- Interoperability: BEP20 tokens seamlessly interact with other Binance Smart Chain-based applications and assets. This interoperability provides a connected and integrated ecosystem, allowing users to take full advantage of all available tools and resources across platforms.
- Cost-Efficiency: The Binance Smart Chain is known for its fast transaction speeds and lower fees compared to platforms like Ethereum. This makes transactions involving BEP20 tokens more cost-effective, attracting many users and developers.
- Flexibility: The BEP20 standard is also flexible and programmer-friendly, this enables a variety of fungible tokens to be created. Since these tokens run on BNB, validators have leeway in claiming blockchain transactions.
- Speed: One outstanding benefit of BEP20 tokens on the Binance Smart Chain is its speed, facilitating transactions in a faster time frame compared to some other blockchains.
BEP-20 vs. Other Tokens
The BEP-20 token standard is primarily used on Binance Smart Chain, and it shares similarities with other token standards like the ERC-20 (Ethereum) and TRC-20 (Tron). Still, there are defined differences in terms of efficiency, cost, and interoperability.
BEP-20 vs. ERC-20
Transaction Speed and Cost: Compared to the Ethereum network (where ERC-20 tokens operate), Binance Smart Chain (and thus BEP-20 tokens) generally offer faster transactions at a considerably lower cost. ChainGPT is an ERC-20 token built on top of the Ethereum blockchain ensuring security and decentralization.
Integration with Binance: BEP-20 tokens have a closer integration with the Binance ecosystem which potentially offers access to a larger liquidity pool.
BEP-20 vs. TRC-20
Ecosystem: Both BEP-20 tokens and TRC-20 tokens exist in robust ecosystems (Binance Smart Chain and Tron, respectively). However, Binance Smart Chain has seen accelerated growth and adoption due to its compatibility with Ethereum-based applications and lower transaction costs.
Developer Support: Binance Smart Chain and Tron both have committed developer communities, but the former has seen a larger influx of projects migrating from other chains due to lower fees and Ethereum compatibility.
BEP-20 vs. ERC-20
BEP-20 tokens are built on the Binance Smart Chain, offering higher transaction speeds and lower fees. BEP20 tokens can interact seamlessly with other apps and tokens within the Binance Smart Chain ecosystem.
ERC-20 tokens, on the other hand, are built on the Ethereum Network. Ethereum’s ERC-20 standard has been widely adopted and is often used for ICOs. However, high transaction fees and slower speeds compared to BSC have been a concern for users. One example of ERC-20 token is XCN coin, the native toke of the Onyx Protocol platform and is currently ranked #186 in the Ethereum (ERC-20) Tokens sector and ranked #12 in the Binance Smart Chain sector.
BEP-20 vs. BEP-2
BEP-2 tokens are native to the Binance Chain. This standard was the first token standard introduced by Binance and allowed for the creation and issuance of digital tokens on the Binance Chain.
On the other hand, BEP-20 tokens are built to operate on the Binance Smart Chain. They offer compatibility and interoperability with other tokens in the Binance Smart Chain ecosystem and can also interact with Ethereum ERC-20 tokens.
Major BEP-20 Tokens
BEP-20 tokens are the most common type of ERC20 token, which is a standard used to create new cryptocurrencies. It’s a way for developers to create their own cryptocurrency that can be used on the Ethereum blockchain and traded with other people.
Because BEP-20 Tokens are so popular, there are hundreds of them — some with real-world value and others designed just as jokes or experiments in crypto.
Binance Pegged Tokens (Peggy Coins)
Binance Pegged Tokens, also known as Peggy Coins, are tokens issued on the Binance Smart Chain (BEP-2 token format) that are pegged 1:1 to their respective native cryptocurrencies. These tokens enable trading and interaction across different blockchains, as they represent the value of the asset they are linked to while living on the Binance Smart Chain.
PancakeSwap Token (Cake)
PancakeSwap Token, or CAKE, is the native utility token of PancakeSwap, an automated market maker (AMM) and yield farm on the Binance Smart Chain. As a BEP-20 token, CAKE enjoys fast transaction speeds and lower fees compared to tokens on other blockchain networks.
PancakeSwap also pioneered a new token launch model called Initial Farm Offerings (IFO), where tokens are provided to liquidity providers instead of conducting a traditional sale.
BakerySwap (BAKE) is the native utility token of the BakerySwap platform, which is an all-in-one DeFi platform built on Binance Smart Chain (BSC). The platform provides both Automated Market Maker (AMM) and a Non-Fungible Token (NFT) Marketplace.
Users can engage in various activities on the platform, such as exchanging tokens, providing liquidity, participating in liquidity farming, minting NFTs, and trading them. BAKE tokens serve various purposes, including governance, rewards, and participation in platform events.
How Do You Get BEP-20 Tokens?
There are several ways to acquire BEP-20 tokens:
Earning through Cryptocurrency Exchanges: Tokens can be bought directly from a crypto exchange that supports the Binance Smart Chain, such as Binance itself, KuCoin, Kraken and more.
Apart from directly purchasing them on exchanges, there are other methods as well:
PancakeSwap: You can use Binance Bridge or PancakeSwap Bridge to swap compatible tokens from other chains to their BEP-20 equivalents.
Faucets: Certain services or websites give BEP-20 tokens away for free or in exchange for completing tasks.
Wallets: The extension can be installed on your web browser, where you can create a new wallet, and then connect it to the Smart Chain network.
Transfer: You can ask someone who already owns BEP-20 tokens to send them to your Binance Smart Chain address.
Developers can leverage the BEP-20 standard to create tokens compatible with BSC while ensuring operability with DeFi and dApp platforms. This standard has significantly contributed to the growth of the DeFi sector and allowed for enhanced functionality on the Binance Smart Chain.
The interoperability and compatibility of BEP-20 tokens with both the Binance Chain and Binance Smart Chain ensure the efficient usability of tokens across two separate blockchain networks.