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Written by ElAdmin in News
Mar 27 th, 2024
Simply put, Binance Smart Chain, or BSC, is a blockchain made to run smart contracts. It works together or in parallel with Binance Chain, Binance’s first blockchain used on its non-custodial exchange. The BEP-20 token model allows users to create a new token on the BNB Smart Chain easily.
Since Moralis is built to be cross-chain, you can easily integrate non-BSC projects or other tokens into your BEP20 or BSC build. On top of enabling you to create BSC dApps, Moralis also helps you create a BSC NFT to list on a BSC marketplace. With these platform and token successes in mind, more developers are inspired to build on BSC and create their unique BEP20 tokens.
For example, BEP20 offers the flexibility for pausing network operations in event of network downtime or compromised access. If you want to know the true potential of the BEP20 token standard, then you expenses and benefits: loans offered to workers must review the examples of money market protocols based on the standard. Venus offers a credible protocol for decentralized lending and borrowing on the foundations of BSC.
Like ERC-20, BEP-20 is a token model, and the two share many similarities. However, BEP-20 runs on BSC, while ERC-20 is on Ethereum’s network. As such, ERC-20 tokens need to be converted into BEP-20 tokens if transferred from chain to chain. These are tokens that run on Binance Smart Chain — Binance’s second blockchain. The chain was launched to offer a more scalable development space for crypto talents. BEP-20 is a token model on BNB Smart Chain, which doesn’t differ much from Ethereum’s ERC-20.
With the right resources, such as the right web3 platform and guidance on BEP20, you can create your own BEP20 project on BSC. As Binance Smart Chain starts moving towards NFTs, it is important to wonder about the opportunities you can explore with BEP20. In addition, with a brief overview of successful projects, such as PancakeSwap, you’ve gotten inspiration so you can create and launch your own dApp on BSC.
Some popular examples of the BEP20 tokens include Peggy coins, Cake (PancakeSwap token), and BAKE (BakerySwap token). You can store both BEP20 and ERC20 tokens on crypto wallets like Guarda. Regarding transaction speed, BEP20 transactions happen within 3 seconds, while ERC20 transactions take 15 seconds. In comparison, ERC20 tokens can handle up to 20 transactions per second.
Some consider Binance’s and Ethereum’s ecosystems to be rivals, and they also transfer that rivalry onto the token models. Binance is merging its BEP-2 and BEP-20 chains into a single BNB Chain Fusion by April 2024. Announced on January 8, 2024, this move combines Binance’s dual-chain system into one, requiring users to convert BEP-2 and BEP-8 tokens into BEP-20 to maintain their assets.
Users can obtain any of these, or other BEP-20 tokens, on the Binance exchange, Binance DEX or PancakeSwap. Besides the basic functionalities, BEP20 assets also possess the capability of exchange – swap. Much like ERC-20 tokens running on Ethereum, BEP-20 tokens tokens run on BNB Chain.
Furthermore, ERC-20 tokens’ gas fees for transactions can be quite expensive compared to BEP-20’s low transaction costs. We will explain the reason for the high gas fee in the comparison part of this article. BEP20 and ERC20 are two different types of tokens, both of which run on their Binance and Ethereum blockchains, respectively.
Therefore, Binance Smart Chain evolved as a favorable answer for accommodating smart contracts alongside automated transactions. As a matter of fact, Binance Smart Chain or BSC set the foundations for the DEX project of Binance. While BSC operates as a separate chain for digital assets, it can be considered an extension of the BNB Beacon Chain. Both feature the same dual-chain architecture, which allows them to communicate with one another. The two chains are interoperable, and swapping BEP-20 tokens with BEP-2 tokens is simple.
You’re now familiar with Binance Smart Chain’s evolution protocol or BEP20 token standard. In addition, you’ve learned how Binance Smart Chain works relative to Binance Chain and how BEP2 and BEP20 tokens interact with each other and how they interact with BNB. It was created in September 2020, after the Decentralized Finance (DeFi) sector went mainstream. Things like staking, decentralized lending, and other DeFi services were available for years. However, they never captured the attention of the wider crypto industry. The subsequent arrival of the ERC-20 token model offered a foundational blueprint for developing new cryptocurrency tokens.
Hence, they share some similarities, such as the transferability requirements, divisibility standards, and how total supply is defined. From learning what is ERC20 and what is BEP20 to exploring the benefits of using an ERC20 wallet or a BEP20 wallet, this guide covers everything you need to know. Creating a BEP-20 token involves using smart contracts on the BNB Chain. Developers can utilize platforms like Remix IDE and follow specific guidelines to deploy their own BEP-20 tokens.
BEP20 tokens operate on the BEP20 network of the BNB Smart Chain (formerly Binance Smart Chain), whereas ERC20 tokens are built on the ERC20 chain of the Ethereum network. In the rapidly evolving world of cryptocurrency and blockchain technology, understanding various token standards and their applications is crucial. Both chains feature BNB as their main native digital asset, and BNB fuels both token models.
Programmers who are new to blockchain or are still finding their way around the space should look up tutorials on Solidity, smart contracts, and JavaScript. You’re now familiar with what both Binance Smart Chain and BEP20 is. Moreover, you now understand why certain developers choose the BEP20 token standard when developing dApps and projects. Furthermore, BEP2 and BEP20 are standards for their respective chain, such as Binance Chain and Binance Smart Chain. We also looked at essential parameters for the BEP20 token standard and overviewed the differences between BEP20 and ERC20. The BEP20 standard is similar to Ethereum’s ERC20 standard in many ways, but it also expands on it.
By now, you should be curious about the best way to create a BEP20 token. There are a few efficient ways to do it, but the best way to create a BEP20 token is with Moralis, today’s most comprehensive Web3 operating system. As a complementary infrastructure, BSC operates independently from Binance Chain.
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