Learn About BEP20 Token And Its Importance — Digitally Cool

The BEP20 token standard is based on the Binance Smart Chain and specifies rules about BEP20 tokens. Read on to know more!

What Is BEP20?

BEP20 is a token standard. BEP20 serves as an extension of the ERC-20 token. BEP20 tokens are based upon the ERC20 token rules and improve them by providing better speed and cost of transactions based on an enhanced protocol. The BEP20 token standard is based on the Binance Smart Chain and specifies rules about BEP20 tokens.

What Is BEP2?

BEP2 is another token standard that specifies rules for creating and using tokens on the Binance Chain. BEP2 allows faster exchanging of assets on the Binance Chain. The BEP2 token standard defines basic features and standards that all developers must follow to decrease the effort while creating and issuing tokens on the Binance Chain.

What Is BSC?

The BSC (Binance Smart Chain) is a blockchain environment specifically created to develop decentralized applications. BSC allows cross-chain compatibility so developers and users can make the most of it along with the Binance Chain. BSC provides better scalability and intelligent contract functionalities. BSC is also compatible with the EVM (Ethereum Virtual Machine) and allows developers to use its applications with minor adjustments.

Difference Between BEP20 And ERC20 Tokens

Following are the differences between BEP20 and ERC20 tokens -

• Blockchain:ERC20 token standard is for the Ethereum blockchain, whereas the BEP20 token standard is for the BSC (Binance Smart Chain).
• Transaction Fee:BEP20 token transactions cost lower fees in cents, whereas ERC20 token transactions cost in dollars.
• Transaction Speed:BEP20 transactions are faster than ERC20. BEP20 transactions are completed in under 5 seconds, whereas ERC20 ones can take up to 15–20 seconds.
• Token Variety: Ethereum’s ERC20 tokens have thousands of DApps (Decentralised Applications), whereas BEP20 tokens have fewer DApps projects as it is new.
• Security:BEP20 tokens may be faster but provide lesser protection than ERC20 as there are fewer validators on its BSC network than Ethereum.

List of Recommended Exchanges/Wallets That Are BEP20 Supported:
Following are the exchanges/wallets you can consider for BEP20 -

1. Binance is one of the largest and the best crypto exchanges worldwide and allows you to trade BEP20 tokens with ease.
2. FTX is another excellent exchange with over $10 Billion daily trading volume that supports BEP20 tokens.
3. With exception security, high liquidity, and low trading fees, Huobi is another exchange where you can buy or trade BEP20 tokens.
4. A Singapore-based exchange, KuCoin provides support for BEP20 tokens and Spot Trading, Margin trading, and Derivatives, paired with excellent security.
5. The Ledger Nano X comes with excellent security, compatibility, and features that include support for the storage of BEP20 tokens.
6. Trust Wallet:Trust Wallet is a popular, multi-functional, and secure mobile wallet supporting BEP20 tokens and BSC DApps.
7. Providing support for nearly 10,000 tokens and 20 blockchains, including the BEP20 tokens. SafePal is an excellent wallet that you can use to store BEP20 tokens safely.

How To Withdraw BEP-20 Tokens On Binance Smart Chain?

Follow the steps below for withdrawal of BEP20 tokens:

1. Log in to your account and go to > Wallet > Overview.
2. Click on Withdraw.
3. Select a coin and enter the withdrawal address.
4. Select BSC as the network.
5. Enter Amount and check the safety reminder
6. Review the transaction and click confirm

Final Words

BEP20 establishes guidelines that must be followed by all tokens generated on BSC. The BEP20 token standard on Binance Smart Chain applies to every token released or produced on the platform. Utility tokens, stablecoins, and security tokens are examples of such tokens.

Originally published at https://digitallycool.com on November 29, 2021.