Definition of ‘BEP20’ - BEP20, an abbreviation of Binance Smart Chain Evolution Proposal, is the standard for creating digital tokens on the Binance Smart Chain (BSC).
What is BEP20?
BEP20 Definition - BEP20, an abbreviation of Binance Smart Chain Evolution Proposal, is the standard for creating digital tokens on the Binance Smart Chain (BSC).
BSC is a blockchain, or cryptographic ledger, that was launched in September 2020 to run smart contracts for enabling decentralized applications (dApps).
BSC is designed to operate parallel to the Binance Chain, the initial blockchain that Binance launched in 2019 to run its cryptocurrency exchange and does not support smart contracts.
Cryptocurrency tokens are used to process transactions and transfer value on a blockchain.
Token standards create common functionality so that tokens on a common standard can interact with cryptocurrency exchanges and wallets that support the standard.
There are different types of tokens, including utility tokens, security tokens, and stablecoins. The Binance Chain uses the BEP2 token standard and BSC uses the BEP20 standard. The two standards are fully interoperable, so users can transfer assets between the two.
BEP20 sets out the parameters for tokens created on BSC, including how they can be issued and used and who can use them.
In addition to native coins created on BSC, the standard enables the creation of coins that are pegged at a 1:1 ratio to other cryptocurrencies such as Bitcoin or Ethereum. Pegged BEP20 tokens enable users to transfer digital assets between BSC and other blockchains.
Users pay for BEP20 token transactions using Binance coin BNB.
The functions in the BEP20 standard include:
totalSupply: defines the total number of tokens in a contract
balanceOf: shows the number of tokens in a user address
transfer: enables a token owner to transfer tokens to another user
transferFrom: automates transfers, such as for subscription payments
approve: limits the number of tokens a smart contract can withdraw from a balance
allowance: checks the unspent portion of a balance after a smart contract transaction
name: provides a name for the token
symbol: specifies the token symbol, e.g. BNB
decimal: specifies how divisible a token can be based on the number of decimal places
Symbol and decimal are optional for ERC20 tokens, but they are required parameters for BEP20 tokens. The BEP20 standard also specifies a required getOwner function that identifies the owner of a BEP20 token.
BEP20 vs ERC20
What are the differences between the BEP20 and ERC20 standards? BEP20 extends the functionality of the ERC20 standard for tokens on the Ethereum blockchain.
Ethereum was the first blockchain to offer smart contracts, and the ERC20 was the first standard to provide specifications for tokens used in executing smart contracts.
The BEP20 standard offers developers flexibility and provides users with fast transaction speeds and low processing fees.
A sharp rise in transaction costs, known as gas fees, on the Ethereum blockchain has increased the adoption of alternatives to ERC20 tokens such as the BEP20 tokens.
As the BSC is compatible with Ethereum Virtual Machine (EVM), applications based on EVM can be transferred directly onto the BSC platform. Binance’s cross-blockchain bridging service Binance Bridge supports transfers of ERC20 tokens to the BEP20 standard.
Which coins are BEP20?
There is a growing number of cryptocurrency coins based on the BEP20 standard. In addition to BNB and the Binance US dollar stablecoin BUSD, some of the largest BEP20 tokens include CAKE, BakeryToken, BurgerSwap, Safemoon, Cream, Swipe, and wrapped BNB.
Is BEP20 the same as BSC?
BEP20 is not the same as BSC. BEP20 is the standard that sets out the functionality of digital tokens that run on the BSC blockchain. BSC is the network, while BEP20 provides the framework for the tokens that run on the network.