BEP-20 is the token standard on Binance Smart Chain (BSC), extending Ethereum’s popular ERC-20 framework. It serves as a technical blueprint for creating interoperable tokens within the BSC ecosystem, ensuring compatibility with decentralized applications (DApps), wallets, and exchanges.
Understanding BEP20: Key Features
1. BEP20 vs. ERC-20 and BEP-2
- ERC-20 Compatibility: BEP-20 mirrors Ethereum’s ERC-20 standard, enabling seamless cross-chain integrations.
- BEP-2 Synergy: Unlike BEP-2 (Binance Chain’s native token standard), BEP-20 operates on Binance Smart Chain, which supports smart contracts and DeFi protocols.
2. Core Functions of BEP20 Tokens
- Flexible Token Creation: Developers can launch utility tokens, stablecoins (e.g., BUSD), or pegged assets (e.g., "Peggy" coins like BEP-20 versions of LINK/XRP).
- BNB for Transactions: Transferring BEP-20 tokens requires BNB to pay gas fees, incentivizing validators.
3. Binance Smart Chain’s Dual-Architecture
Complementary Chains:
- Binance Chain: Optimized for ultra-fast trading.
- Binance Smart Chain: Supports smart contracts and DApps without congesting the original chain.
How BEP20 Tokens Work
Token Standards Explained
| Standard | Blockchain | Use Case |
|----------|------------------|------------------------------|
| BEP-20 | Binance Smart Chain | DeFi, NFTs, Stablecoins |
| ERC-20 | Ethereum | ICOs, Utility Tokens |
| BEP-2 | Binance Chain | Native Binance Chain Assets |
Examples of BEP20 Tokens
- BNB (Binance Coin): Native currency for BSC transactions.
- BUSD: A regulated stablecoin pegged to the USD.
- Peggy Tokens: Cross-chain assets like BTCB (Bitcoin-pegged BEP-20).
FAQs About BEP20
1. Is BEP20 the same as ERC-20?
No. While both are token standards, BEP-20 runs on Binance Smart Chain, whereas ERC-20 operates on Ethereum.
2. Why use BEP20 over BEP-2?
BEP-20 supports smart contracts, making it ideal for DeFi projects, unlike BEP-2’s focus on trading speed.
3. How do I transfer BEP20 tokens?
You’ll need BNB in your wallet to cover gas fees.
👉 Learn how to trade BEP20 tokens securely
4. Can BEP20 tokens bridge to other blockchains?
Yes! Projects like Binance Bridge enable conversions between BEP-20 and ERC-20/other standards.
Why BEP20 Matters
- Scalability: BSC’s low fees and high throughput attract developers.
- Interoperability: Seamless integration with Ethereum tools (MetaMask, Web3.js).
- Innovation: Powers DeFi platforms (PancakeSwap), NFTs, and more.
Final Thoughts
BEP-20 is pivotal for Binance Smart Chain’s growth, offering developers a versatile framework to build tokens for diverse use cases—from gaming assets to financial instruments. Its synergy with Ethereum’s ecosystem and low-cost transactions make it a standout choice in blockchain development.
For deeper insights, check out our BSC developer guide.