In the early days of cryptocurrencies, creating a new token was a complex task. It required building an entirely new blockchain or using a Bitcoin fork. However, this landscape changed significantly with Ethereum, which repurposed blockchain technology as a development platform.
The subsequent introduction of the ERC-20 token model provided a foundational blueprint for new crypto tokens. As the ecosystem matured, innovative projects like BNB Smart Chain (BSC) emerged, introducing their own token standard—BEP-20.
This guide explores the nuances of BEP-20 tokens, detailing their features and comparing them with the well-established ERC-20 model.
TL;DR
- Developing new cryptocurrencies once required custom blockchains or Bitcoin modifications. Ethereum enabled building atop its platform.
- ERC-20 simplified token creation, establishing a widely adopted foundational model.
- BSC offers a Binance-optimized system similar to ERC-20, enhancing DeFi market competitiveness.
- BEP-20 mirrors ERC-20’s functionality within BSC’s ecosystem.
- The upcoming BNB Chain Fusion (April 2024) will merge Binance’s chains for improved security and efficiency.
Understanding BEP-20 Tokens
BEP-20 is a token standard on BNB Smart Chain (BSC), serving as BSC’s equivalent to Ethereum’s ERC-20. This compatibility allows seamless interaction between the two networks.
Key features:
- Simplified Token Creation: Users can mint BSC tokens without deep programming expertise.
- Smart Contract Compatibility: Powers DeFi projects and tokenized assets.
- BNB-Powered Transactions: All fees are paid in BNB (Binance’s native token).
- DEX Integration: Tokens can trade on Binance’s decentralized exchange.
👉 Discover how BEP-20 fuels DeFi innovation
What is BNB Smart Chain (BSC)?
Launched in September 2020, BSC is Binance’s development-focused blockchain supporting:
- Smart contracts
- DApps
- DeFi protocols
Considered Ethereum’s rival, BSC hosts over 1,400 DApps and processes 2M+ daily transactions.
BEP-20 Token Parameters
Standard parameters ensure consistent token behavior:
| Parameter | Function |
|---|---|
| Blacklist | Blocks malicious addresses |
| Can Mint | Enables inflationary token supply |
| Can Burn | Reduces supply via deflation |
| Can Pause | Halts trades during attacks |
Popular BEP-20 Tokens
- PancakeSwap (CAKE): Leading BSC-based DEX.
- AutoFarm: Yield aggregation platform.
These tokens are available on Binance, Binance DEX, or PancakeSwap.
BEP-20 vs. ERC-20: Key Differences
| Feature | BEP-20 (BSC) | ERC-20 (Ethereum) |
|---|---|---|
| Transaction Speed | ~3s | ~15s–5min |
| Fees | $0.05–$0.15 | $1–$50+ |
| Interoperability | Via Binance Bridge | Native to Ethereum |
Conversion: ERC-20 tokens can be pegged to BEP-20 (and vice versa) fee-free using Binance Bridge.
BEP-20 vs. BEP-2
| BEP-20 (BSC) | BEP-2 (BNB Beacon Chain) | |
|---|---|---|
| Use Case | DeFi/DApp development | Governance/trading |
| Interoperability | Fully compatible via Binance Bridge |
👉 Explore BNB Chain’s dual-chain architecture
BNB Chain Fusion (April 2024)
Binance will merge BEP-2 and BEP-20 into a unified chain to:
- Enhance security
- Streamline transactions
Users must convert BEP-2/BEP-8 tokens to BEP-20 before the deadline.
Conclusion
BEP-20 and ERC-20 are functionally similar but operate on competing networks. With cross-chain bridges and upcoming mergers like BNB Chain Fusion, the focus shifts toward interoperability—a cornerstone of Web3’s future.
FAQs
What is a BEP-20 address?
A wallet address supporting BSC-based tokens (format: 0x...). Always specify the network when receiving funds.
Is BEP-20 the same as ERC-20?
No—BEP-20 runs on BSC, while ERC-20 operates on Ethereum. Tokens require conversion via bridges.
How do I store BEP-20 tokens?
Use OKX Web3 Wallet or other BSC-compatible wallets.
What happens to BEP-2 tokens after the merger?
Convert them to BEP-20 before April 2024 to maintain access.