BEP20 provides an easy way for developers to launch different tokens on the innovative Binance Smart Chain ecosystem. This token standard gives a clear framework of rules and guidelines, making it simple to create new tokens that seamlessly adhere with the blockchain’s infrastructure.
Therefore, whether you’re launching your own token or using existing tokens, chances are they’ll be compliant with this all-encompassing protocol.
What Is BEP-20?
BEP-20 is the Binance Smart Chain’s cutting-edge token standard. This token standard is designed to meet the high demand of modern digital asset users, by leveraging ERC-20.
The BEP-20 standard provides a template for tokens that outlines the guidelines for their usage; including who can spend them and how they can be spent. This allows for a more versatile structure for launching new tokens; such as tokenized securities and stablecoins, as well as non-fungible tokens.
One example of a BEP-20 token is Peggy Coins, which are pegged to other cryptocurrencies such as BTC and LINK.
These tokens follow the BEP-20 token standard and allow for a dual chain architecture; where the Peggy Coin is linked to the value of the underlying asset on another blockchain while allowing for the advantages of being on Binance Smart Chain such as faster transaction times and lower fees.
Moreover, the introduction of this token standard offers a flexible framework for launching cryptocurrencies in the Binance ecosystem. This can increase the utility and value of the Binance Smart Chain and attract more users to the platform.
Since Binance Chain and BSC complement each other and run in tandem, BEP-20 tokens can be used on the Binance Chain for fast trading on the Binance DEX platform. However, BEP-20 versions of the pegged tokens outside the Binance ecosystem need to be swapped for their native asset because the cross-chain compatibility and the Binance Bridge in this case are only between Binance Chain and BSC.
Parameters in a BEP-20
Some of the key parameters of the BEP-20 token standards are:
Can Burn
BEP-20 tokens possess a unique feature with regards to supply. This parameter gives BEP-20 tokens the power to self destruct, reducing the overall supply and making them a deflationary asset.
Can Mint
This parameter is the opposite of Can Burn. Can Mint specifies if new BEP-20 tokens can be created to increase the overall supply and make it an inflationary token.
Can Pause
In the event of a security issue or software vulnerability, having this parameter in place offers peace of mind. Creators and authorized addresses can rely on it to quickly pause all token transactions while matters are resolved.
Blacklist
Similar to Can Pause, this parameter allows the creator to blacklist specific addresses that may be acting maliciously.
When the setup is complete and a token has been created, you will have complete control over it as a creator. The generated tokens are sent to their specified address before being published on BSC at no extra cost except for transaction fees.
How to receive BEP-20 tokens?
Receiving a BEP-20 token is as simple as sending it to your unique address on the Binance Smart Chain.
First, you need download a wallet that supports this token standard. Popular wallets like the Binance Smart Chain Wallet as well as Trust Wallet, MetaMask and Ledger can all help you receive these tokens.
After setting up your wallet, simply provide others with its public address so they can send over their tokens seamlessly.
The address is very similar in format to an Ethereum address and will always start with “0x…” Make sure you let the sender know which specific currency and network you want, so that there’s no mixup.
How to send BEP-20 tokens?
To send BEP-20 tokens, you must have them in your wallet and know the recipient’s public address.
After opening up your wallet, you need to select ‘Send Tokens’, and enter the right address into its designated field. Then, verify that you have sufficient token funds with enough leftover for transaction costs before pushing it through.
To send coins, you need a piece of the BNB puzzle – their native token. Without it in your possession, all other money sending options are rendered useless and transactions will be blocked even if there’s 0 balance on-hand.
How Do You Store BEP-20 Tokens?
If you own BEP-20 tokens, storing them can be incredibly simple.
Three wallets that support the storage of these tokens:
Metamask
Metamask is a popular Ethereum wallet with added capabilities for connecting it to Blockchain SunSpot (BSC) networks.
Trust Wallet
This wallet offers secure decentralized multicurrency portfolios facilitates sending/receiving as well as buying & swapping coins within its interface.
Binance Chain Wallet
Binance Chain Wallet extension helps you manage your crypto assets on the go through browsers like Chrome or Firefox.
Popular BEP20 Token
The Binance Smart Chain (BSC) is gaining significant popularity, and many new tokens are being launched on the platform.
Binance Pegged Tokens
Binance Peg Tokens, often referred to as Peggy Coins, provide users with a trustworthy and dependable way of gaining access to renowned cryptocurrencies; Bitcoin (BTC), Ethereum (ETH), Tether USDT, Litecoin (LTC) and Cardano ADA. As the tokens are backed 1:1, users have the unique opportunity to interact with Decentralized Finance applications on the BSC platform without having to involve any third-party mediators by buying them, swapping them, or redeeming them for native assets.
PancakeSwap
PancakeSwap is a decentralized exchange (DEX) that provides users an easy way to trade BEP-20 tokens. That gets done with the help of Automated Market Maker (AMM) and liquidity pools. Its dominance in the BSC platform is evident by its current market cap, which is estimated to be over $5.17 billion. Furthermore, users who provide liquidity are rewarded LP tokens, which can then be used to farm CAKE, PancakeSwap’s governance token.
BakerySwap
BakerySwap is a thriving decentralized exchange on Binance Smart Chain that has an outstanding market capitalization of $3.5 billion. It features an innovative NFT Supermarket, Launchpad, and Combo pool which allows users to gain LP tokens upon providing liquidity to the platform. These tokens can then be staked for BAKE – BakerySwap’s governance token.
Differences between BEP-20 and BEP-2 tokens
It might be tempting to think that BEP-20 and BEP-2 are identical since they can easily interchanged. However, there is more than meets the eye.
With the launch of Binance Smart Chain, two separate token standards have emerged: BEP-2 and BEP-20. Each is designed to cater for different use cases. One caters toward the original blockchain network. The other was created specifically with decentralized finance (DeFi) in mind. And as a result of this separation, it’s important to note that your wallet address format will vary depending on which protocol you are using.
Furthermore, BEP2 wallets have addresses starting with “bnb” and require a MEMO for transactions, ensuring the funds are sent to their rightful owner. Contrastingly, Ethereum-based accounts start with 0x – an instantly recognizable identifier of their blockchain family.
Though BEP2 and BEP20 may seem similar, subtle variations between them become evident when utilizing Trust Wallet as a payment method. This payment method is an important distinction to remember.
