BEP-20 is a token standard on the Binance Smart Chain that extends Ethereum’s ERC-20, providing a framework for issuing and managing tokens with a focus on flexibility and efficiency.
BEP-20 Meaning
BEP-20 represents a token standard for Binance Smart Chain, extending the ERC-20 protocol from Ethereum. It’s a blueprint for developers to create diverse tokens on Binance Smart Chain, ensuring uniformity within its ecosystem.
Understanding BEP-20
The term BEP stands for Binance Chain Evolution Proposal. Each BEP has a unique number, such as BEP2, BEP20, BEP721, and BEP115, to distinguish it from others. BEP-20 is a set of rules governing the creation and use of tokens on Binance Smart Chain.
- It outlines how tokens are transferred and utilized.
- Developers benefit from a flexible and user-friendly format.
- BEP-20 optimizes transaction costs and speed.
Similar to Ethereum’s ERC-20, BEP-20 tokens are divisible, transferable, and have a defined total supply. BNB coin, the native currency of the platform, is used for transaction fees and validator rewards, akin to Ethereum’s gas fees.
Compatibility and Examples
BEP-20 is compatible with ERC-20, allowing for cross-chain transfers between BEP2/BEP20 and ERC-20 tokens. Notable BEP-20 tokens include Peggy coins, Cake (PancakeSwap token), and BAKE (BakerySwap token).
BEP2 versus BEP20
BEP-2 is the standard for tokens on the BNB Beacon Chain, whereas BEP-20 pertains to the Binance Smart Chain. Both standards are compatible, supporting interoperability and token swaps between the two chains. The BNB coin serves as the native currency for both chains, underpinning their functionality.