Definition of “BEP20” - BEP20, short for Binance Smart Chain Evolution Proposal, is a standard for creating digital tokens on Binance Smart Chain (BSC).
What is BEP20?
BEP20 Definition - BEP20 is the abbreviation of Binance Smart Chain Evolution Proposal, which is a standard for creating digital tokens on Binance Smart Chain (BSC).
BSC is a blockchain, or cryptographic ledger, launched in September 2020 for running smart contracts to enable decentralized applications (dApps).
BSC is designed to run in parallel with Binance Chain, Binance’s original blockchain launched in 2019 to run its cryptocurrency exchange, which does not support smart contracts.
Cryptocurrency tokens are used to process transactions and transfer value on the blockchain.
Token standards create common functionality so that tokens on a common standard can interact with cryptocurrency exchanges and wallets that support that standard.
There are different types of tokens, including utility tokens, security tokens, and stablecoins. 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 specifies the parameters for tokens created on BSC, including how they are issued and used and who can use them.
In addition to native coins created on BSC, the standard also allows the creation of coins pegged 1:1 to other cryptocurrencies such as Bitcoin or Ethereum. Pegged BEP20 tokens enable users to transfer digital assets between BSC and other blockchains.
Users pay BEP20 token transaction fees using Binance Coin (BNB).
Features in the BEP20 standard include:
totalSupply: defines the total number of tokens in the contract
balanceOf: Displays the amount of tokens in the user's address
transfer: Enables a token owner to transfer tokens to another user
transferFrom: Automatic transfer, such as subscription payment
approve: Limits the number of tokens that a smart contract can withdraw from a balance
allowance: Check the unused portion of the balance after a smart contract transaction
name: Provide a name for the token
symbol: specifies the token symbol, such as BNB
decimal: specifies the divisibility of the token according to the number of decimal places
Symbol and decimal are optional parameters for ERC20 tokens, but are required parameters for BEP20 tokens. The BEP20 standard also specifies a required getOwner function that identifies the owner of a BEP20 token.
BEP20 and ERC20
What is the difference between 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 ERC20 was the first standard to provide specifications for tokens used to execute smart contracts.
The BEP20 standard provides flexibility for developers and fast transaction speeds and low processing fees for users.
The cost of transactions on the Ethereum blockchain, known as gas fees, has risen dramatically, increasing the adoption of ERC20 token alternatives, such as BEP20 tokens.
Since BSC is compatible with the Ethereum Virtual Machine (EVM), EVM-based applications can be directly transferred to the BSC platform. Binance's cross-blockchain bridging service Binance Bridge supports the transfer of ERC20 tokens to the BEP20 standard.
