BEP20 – Everything About This Binance Smart Chain Token

The BEP20 token standard for Binance’s smart chain is identical to the ERC20 standard. If you look closely, each token developed or issued on the Binance Smart Chain is subject to the BEP20 standard. Securities, service tokens, and stablecoins are a few examples. Additionally, BEP20 supports the creation of “Peggy Coins,” a special class of cryptocurrency tokens that you may peg to various assets.

What Is BEP20?

Similar to how ERC20 is used to create tokens on Ethereum, BEP20 is a standard for creating tokens on BSC. It is a crucial instrument for allowing the creation of smart contracts here on Binance Smart Chain. BEP, or “Binance Smart Chain Evolution Proposal.”

It functions as a set of guidelines for tokens that specify how they may be used, who can use them, and other usage restrictions. It works with Ethereum’s ERC-20 and Binance Chain’s BEP-2 because of their similarities.

As a technical standard for Binance Smart Chain, BEP-20 was created to give developers a flexible framework to introduce various tokens. These might be anything from money kept in a bank vault to stock in a company (i.e., a stablecoin).

The token contains fundamental functions, including transfer, balance return, and possession inspection, and is contract-compatible. It is the most effective token available on a Defi platform that allows high-demand contracts like Leonicorn Swap. Any Ethereum dApp can be easily adapted, and you can learn about each of Binance Smart Chain’s capabilities.

What Is Binance Smart Chain?

Smart contracts may be executed on the blockchain technology known as Binance Smart Chain (BSC). Together, they create Binance Chain, a blockchain carefully constructed for lightning-fast trading and massively increased transactions throughout.

One of the biggest centralized cryptocurrency exchanges, Binance, introduced Binance Chain in 2019 to complement Binance DEX, its decentralized counterpart. Fast and decentralized (fragmented) trading was a specific goal of Binance Chain’s architecture. It included the BNB token, which has a fixed quantity of 200 million tokens.

An alternative blockchain network for programmable smart contracts called Binance Smart Chain (BSC) was introduced in September ’20. Since BSC is compatible with Ethereum Virtual Machine (EVM), the developers do not need to transition their already EVM-based apps to the BSC platform.

What Is Taking Place On The Binance Smart Chain?

Smart Chain, a low-cost, fast substitute for Ethereum supported by one of the biggest cryptocurrency firms in the world, already has a huge number of DApps and Defi applications running on its chain.

While several Defi protocols have transferred from these other blockchain networks to Smart Chain, hundreds of DApps built specifically for Smart Chain have appeared and have seen rapid user growth.

The majority of activity on BSC is centered around defi protocols like PancakeSwap, Venus, and Autofarm. That does not, however, imply that Smart Chain is limited to decentralized finance.

On Smart Chain, sports and betting DApps have also flourished. The first NFTs started to surface in mid-2021 to give BSC users access to the same crypto-collectibles as users on other chains.

How To Withdraw BEP-20 Tokens On Binance Smart Chain?

Here are the steps:

• Open your Binance.com account and log in. Click [Overview] after selecting [Wallet] in the upper right corner.

• Click [Withdraw] in the Wallet Overview window.

• Select the currency you wish to withdraw (in our example, BNB) and input the withdrawal address once you are at the withdrawal menu (obtained from Trust Wallet). Enter the sum you wish to withdraw after choosing BNB Smart Chain (BEP20) as the transfer network.

• A pop-up box will show after choosing BNB Smart Chain as the transfer network to ask you to confirm that you know what you are doing.

• Like any other withdrawal, the next stages are the same. A verification screen will show up to let you know the specifics of the transaction, including the exchange rate and charges.

• You must input your security code to authorize the withdrawal after confirmation.

• These procedures eliminate the requirement for manual BEP-2 to BEP-20 conversion. You are free to engage with any authorized DApp or project after receiving the payment to your Trust Wallet.

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BEP20 vs. Other Tokens

Several smart contract-capable programmable blockchain systems are available, each with a unique token standard. In this part, BEP-20 will be contrasted with ERC-20 and BEP-2, two of the most well-established and influential token standards in use.

BEP-20 vs. ERC-20

The token specifications for BEP-20 and ERC-20 are quite similar. The core components of ownership, transfer, and token issuance are all handled via BEP-20, an upgraded version of the ERC-20 standard.

You may convert your native cryptocurrency holdings to BEP-2 or BEP-20 tokens using Binance Bridge. Let’s use the following illustration to illustrate this: Binance Bridge will perform the cross-chain conversion from ERC-20 stablecoin to BEP-2/BEP-20 tokens, which can be utilized either on Binance Chain or DApps operating on BSC if you’re moving ERC-20 stablecoin to BSC.

Peg-in refers to converting from the original blockchain (ERC-20) to BEP-20. This conversion also functions in the other way (known as “Peg-out”), which involves converting from BEP-20 to the original blockchain (ERC-20). To perform the Peg-in and Peg-out operations, a suitable wallet is required, such as the Binance Chain wallet or MetaMask.

BEP-20 vs. BEP-2

The Binance Chain’s token standard is BEP-2. The BEP-20 and BEP-2 standards operate concurrently and are completely compatible. BNB, the native coin of Binance Chain & BSC, across the network supports the BEP-20 and BEP-2.

The Binance Chain may be viewed as extending into the Binance Smart Chain. They are completely compatible with one another, and both adhere to the dual-chain design. From their compatible wallet, users may quickly exchange BEP-20 tokens from the BSC for BEP-2 tokens on the Binance Chain (Binance Chain Wallet, Trust Wallet).

Major BEP-20 Tokens List

Binance Pegged Tokens (Peggy Coins)

On the BSC platform, Peggy Coins are one category of BEP-20 tokens that are tied to and completely backed by 1:1 crypto assets. The BSC platform now supports such as ETH, BTC, and USDT.

PancakeSwap Token (Cake)

PancakeSwap, which as of this writing, has a market cap of $5.17 billion, is unquestionably the most well-liked DApp on the BSC platform. Consider PancakeSwap as the Ethereum-based SushiSwap and Uniswap’s BSC equivalent, with more benefits and functionality.

BakerySwap (BAKE)

Another decentralized exchange on the BSC platform is called BakerySwap. At the time of writing, its total market value exceeded $3.5 billion. Despite having features like BakerySwap Launchpad, and NFT Combo pool, it has more advanced functionality than PancakeSwap despite having a similar-sounding name.

How Do You Get BEP-20 Tokens?

BEP-20 tokens can be acquired in the same manner as other tokens. Here are four methods for obtaining some BEP-20 tokens:

Binance: Among the largest centralized cryptocurrency exchanges is Binance. Register for an account, look for the BEP-20 token you want and buy it using fiat money or cryptocurrency.

Binance DEX: The autonomous variant of the Binance cryptocurrency exchange is called Binance DEX. In a non-custodial setting, you may utilize Binance DEX to find and purchase prospective BEP-20 tokens.

Trust Wallet: The most well-known multicurrency wallet currently on the market is Trust Wallet. Finding and buying BEP-20 tokens directly through the Trust Wallet interface is quite straightforward.

How Do You Store BEP-20 Tokens?

Keeping your BEP-20 tokens safe is as simple as it gets. The only thing you require is, indeed, a wallet that accepts BEP-20 tokens. The following three methods are available for storing BEP-20 tokens:

Metamask: Despite being a well-known Ethereum wallet, Metamask may be integrated with BSC to hold BEP-20 tokens.

Trust Wallet: A decentralized multiple currency wallets is Trust Wallet. Without leaving the Trust Wallet UI, you may transfer, receive, store, trade, and buy BEP-20 tokens.

Binance Chain Wallet: Chrome and Firefox users may add the browser extension Binance Chain Wallet to their browsers. It facilitates storing BEP-20 tokens and interacting with DApps on the BSC network and is incredibly simple to use.

Pros and Cons of BEP20 And Binance Smart Chain

Pros Of BEP20 And BSC:

Transaction speed: BSC is presently one of the quickest platforms for smart contracts, which helps explain its rapid expansion. It is at least four times quicker than Ethereum, with blocks created every 3 seconds compared to every 13 seconds for Ethereum.

Low gas prices: Currently, processing a transfer on BSC takes an average of Five Gwei, a significant saving over the 30-40 Gwei required on Ethereum. Operating a dApp on BSC costs eight times less than running a similar app on Ethereum.

Cross-chain compatibility: In addition to being able to run on the Ethereum virtual machine (EVM), BSC also supports pegged currencies from several other blockchains, enabling users to build a variety of tokens that may be used on the network. Cross-chain interoperability raises the tokens’ value, usefulness, and liquidity.

Credible platform: Binance is amongst the most well-known exchanges, and the BSC also benefits from this credibility. The exchange is crucial to the PoSA consensus since it verifies each validator on the network, assuring the security and dependability of the blockchain.

Cons Of BEP20 And BSC:

The main complaint leveled about BSC is its degree of centralization.- The Binance exchange is unduly engaged in the efficient operation and upkeep of the blockchain due to the Proof of Staked Authority agreement method, creating a significant central point of failure. Both BSC and BC rely too heavily on the Binance market.

Having an excessive reliance on Ethereum – Binance took considerable measures to mimic the Ethereum blockchain, making it simple to migrate Ethereum-based decentralized applications to BSC. Because of this, there hasn’t been much innovation in BSC beyond what is currently accessible on Ethereum. Binance will always be in the shade of Ethereum unless it invests in regional development on the BSC network.

How To Create A BEP20 Token?

Here are the steps toward creating a BEP20 Token:

• Take a Node

• Set up unique RCP

• Assemble your BNB

• Now, get the wallet address from the MetaMask account and open it.

• Decentralization and open-source software have many advantages. Still, the ability to copy, paste, and modify the code is the most important one.

• One of the most often used platforms for deploying smart contracts is Remix.

• You must modify very few pieces of code to copy it from OpenZeppelin.

• When implementing the smart contract, the next line discusses creating the token and depositing a receipt into the user’s wallet.

• Select the symbol for “deploy and perform transactions” now.

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Should You Use BEP20?

Yes. In May 2020, Binance Smart Chain was introduced. It has gathered a lot of momentum, and there are now several interesting DApps on the platform that use BEP-20 tokens.

The ERC-20 equivalent of Ethereum, BEP-20 tokens offer a far superior alternative with minimal fees and great transaction throughput. For the whole ecosystem, the ability to seamlessly switch between BEP-20 and BEP-2, as well as BEP-20 versions of the pegged assets, can be a game changer.

Frequently Asked Questions: