BEP-20

What is BEP-20?

BEP-20 is a token standard on the Binance Smart Chain (BSC) that extends the functionality of ERC-20, the most common token standard on the Ethereum blockchain. It defines a set of rules and functions that tokens on the BSC must follow, allowing for seamless integration with wallets, exchanges, and other DApps on the network.

Key Features of BEP-20

1. Compatibility: Designed to be compatible with Ethereum's ERC-20 standard.

2. Functionality: Includes standard functions like transfer, approve, and transferFrom.

3. Flexibility: Allows for the creation of both fungible and non-fungible tokens.

4. Gas Efficiency: Generally offers lower transaction fees compared to Ethereum due to BSC's architecture.

5. Interoperability: Facilitates easy token swaps and cross-chain transfers with Ethereum.

How BEP-20 Works

The BEP-20 standard operates through:

1. Smart Contracts: Tokens are created and managed through smart contracts on the BSC.

2. Standard Interface: Implements a standard set of functions that all BEP-20 tokens must include.

3. Metadata: Includes token metadata like name, symbol, and decimals.

4. Balance Tracking: Maintains a record of token balances for each address.

5. Approval Mechanism: Allows users to approve other addresses to spend tokens on their behalf.

BEP-20 vs. Other Token Standards

Comparing BEP-20 to other standards:

1. ERC-20: BEP-20 is largely compatible with ERC-20 but operates on a different blockchain.

2. BEP-2: An earlier Binance Chain standard, less versatile than BEP-20.

3. ERC-721: Unlike BEP-20, ERC-721 is specifically for non-fungible tokens (NFTs).

4. TRC-20: Similar in concept but operates on the TRON blockchain.

Similar Terms

• ERC-20: The Ethereum token standard that BEP-20 is based on and compatible with.

• Smart Contract: Self-executing contracts with the terms directly written into code, used to create BEP-20 tokens.