Best Blockchain Token Standards BEP2-BEP20-ERC20
Key Takeaways:
- BEP-2, BEP-20, and ERC-20 are all common Blockchain Token Standards that say how new tokens should be made and how they should be used.
- To create and distribute tokens on the Binance Chain, BEP-2 must be used as the token Standard.
- Tokens on Binance Smart Chain adhere to the BEP-20 standard, which is backward-compatible with the BEP-2 and ERC-20 protocols.
- Technically speaking, the Ethereum blockchain requires smart contracts to adhere to the ERC-20 standard.
In the world of cryptocurrencies, each token issued on a blockchain that supports smart contracts or is compatible with the Ethereum Virtual Machine (EVM) follows a set of rules called a token standard. The guide tells users how to mint, issue, and use new tokens by using the network underneath. So, token standards are part of the smart contract standards, which are very important in these kinds of networks to make sure that smart contracts can talk to each other easily.
Ethereum is the most popular smart contract blockchain right now. Its creators have made popular standards for tokens that can be used in many smart contract applications. The Ethereum Request for Comments (ERC) is the most common standard. It comes in different formats, such as ERC-20, ERC-721, ERC-777, and ERC-1155.
The Binance blockchains, Binance Chain, and Binance Smart Chain (BSC) are also very popular in the cryptocurrency world. They have their standards for tokens, called BEP-2 and BEP-20.
This article talks about the differences between BEP-2, BEP-20, and ERC-20. It explains what each standard is, lists the most important tokens in each standard, and then tells you which one you should use.
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What is a Blockchain Token Standards?
Tokens are digital units that are stored on a chain of blocks. They are often used in certain ways and have roles like:
- Facilitating transactions
- Acting as a store of value
- Enabling digital assets, like in-game currencies
- Facilitating governance processes.
Every year, thousands of new cryptocurrency projects release tokens, mostly on the Ethereum and BSC networks. For these tokens to work with the standards of the chain they are built on, they must follow the token standards of the network. These standards spell out the rules for making new tokens and putting them into use. Most of the time, the standards set requirements for:
- The total supply limit of the token
- The issuance processes
- The burning mechanism
- The process for executing transactions.
These standards are meant to stop fraud, technical problems, and the creation of assets that don’t follow the rules of the underlying network. For example, the rules for total supply and issuing new tokens can help stop the value of an asset from going down.
What is BEP-2?
Binance Smart Chain Evolution Proposal is what BEP stands for. BEP-2 is the token standard for minting and deploying tokens on the Binance Chain, which is Binance’s first blockchain. It sets up a set of rules that assets must follow to work on the chain. It was originally made for both centralized and decentralized exchanges. Also, BEP-2 is the main token standard for BNB, which is Binance’s coin.
But this standard setup for BNB makes it hard to use BEP-2 tokens in important ways. In particular, BEP-2 tokens don’t work with smart contacts, which are needed for most cryptocurrencies and decentralized applications (dApps) to work. Because of this, BEP-2 tokens can only be used to pay transaction fees on Binance exchanges. But you can turn BEP-2 tokens into BEP-20 tokens so that you can use them in the DeFi space.
Here are some BEP-2 tokens that can be bought on the Binance Chain:
Fantom (FTM) – Blockchain Token Standards
Fantom is a blockchain infrastructure that can be scaled up for DeFi, dApps, and business apps. The Fantom blockchain came out in December 2019 intending to balance scalability, security, and decentralization to solve the blockchain trilemma. It has a BEP-2 version of its native token, FTM, which helps with governance, staking, payments, and transaction fees.
Bitcoin BEP2 (BTCB) – Blockchain Token Standards
BTCB is a stablecoin backed by bitcoin that was made by the Binance exchange. It is completely backed by bitcoin reserves, and its value follows that of bitcoin. BTCB was made to connect the Bitcoin blockchain and the Binance blockchain. It’s important to remember that Binance owns the bitcoin reserves, which makes BTCB very centralized.
Binance USD (BUSD) – Blockchain Token Standards
BUSD is a stablecoin backed by fiat currency that was created by Binance and Paxos Standard. Every BUSD token is worth the same amount of US dollars that are kept in reserves. BUSD tries to give users who want to limit their exposure to volatility a more stable alternative to crypto. Even though BUSD tokens are made on the Ethereum network by Paxos, Binance supports Binance BEP-2 BUSD tokens.
Polkadot (DOT) – Blockchain Token Standards
Polkadot is a cross-chain protocol that connects networks and lets value and data move between blockchains that couldn’t do that before. Also, it’s meant to be fast and able to grow. Polkadot’s native token is DOT, and it also has a BEP-2 equivalent. It makes it easier to stake land and run the Polkadot ecosystem.
Cardano (ADA) – Blockchain Token Standards
Cardano is a Proof-of-Stake (PoS) blockchain that is based on techniques that have been peer-reviewed and proven to work. Its goal is to make dApps, businesses, and DeFi safer and more long-lasting. The Cardano ecosystem is powered by ADA, and it works with the BEP-2 standard.
What is BEP-20?
BEP-20 is just a meaningless standard for BSC. It is a flexible standard that works with both BEP-2 and ERC-20. This makes it simple for BSC to work with the EVM. Also, it is the token standard for the BNB coin on BSC. BSC coins are BEP-20 standard BNB coins.
BEP-20 was made after ERC-20 came out, so it takes a lot of ideas from it. The BEP-20 standard is similar to ERC-20 in many ways and works with both smart contracts on Ethereum and the EVM. Also, it works well with other systems, making it easy to switch from BEP-2 tokens to BEP-20 tokens. BEP-20 and BSC have given Binance Chain users new ways to get into the rapidly growing dApp landscape. Within the first year after it came out, BSC became the main competitor to Ethereum for making dApps.
Here are the best 20 BEP tokens:
PancakeSwap (CAKE) – Blockchain Token Standards
PancakeSwap is a decentralized exchange (DEX) on the Binance blockchain for trading BEP-20 tokens. It also supports yield farming, Syrup Pools to stake CAKE, a lottery where winners can win CAKE prizes, a prediction market, an NFT marketplace, a Profile System, Initial Farm Offerings (IFO), perpetual trading, and community governance.
Safe moon (SFM) – Blockchain Token Standards
The safe moon is an automated liquidity-generating protocol that aims to provide “safe” gains through strategies like static rewards, manual token burns, and automatic liquidity trading to avoid big price bubbles. SFM is based on BSC and is deflationary because half of the transaction fees are given back to investors and the other half are burned.
Cream (CREAM) – Blockchain Token Standards
The cream is made up of a decentralized platform for lending money and a DEX (Cream Swap) that runs on Ethereum and BSC. Users of Cream can lend different digital currencies to each other to make interest. Borrowers can get loans from the liquidity pools by using their crypto holdings as collateral. CREAM is the protocol’s native token, which makes the process of governance easier.
BurgerCities (BURGER) – Blockchain Token Standards
BurgerCities, which used to be called BurgerSwap, is a DeFi protocol that combines DeFi and NFT to build a Web3 metaverse that is both unique and standardized. In BurgerCities, you can do things like meet new people and play games every day. BURGER is the BurgerCities native token that makes everything work.
SXP (SXP) – Blockchain Token Standards
SXP, which used to be called Swipe, is a decentralized protocol that aims to bridge the gap between traditional currencies and digital ones. Its main products are Visa debit cards and a multi-asset web3 wallet that lets you swap crypto, fiat, and stablecoins in almost real-time.
What is ERC-20?
Ethereum Request for Comment is what ERC stands for. ERC-20 is the technical standard for building and using smart contracts on Ethereum, and ERC-20 tokens are digital currencies that live on Ethereum and follow the ERC-20 token standard. Smart contracts, which are digital agreements that are set up to run automatically when certain rules are met, are what the Ethereum network was made for. Because of this feature, many different kinds of dApps can be made. As a result, a lot of platforms and tokens are built on the Ethereum network.
Fabian Vogelsteller, one of the people who helped start Ethereum, came up with the ERC-20 token standard in 2015 as a way to make smart contract tokens on Ethereum more uniform. He suggested that Ethereum’s Request for Comment be its GitHub page. It was named ERC-20 because it was the 20th comment. The plan was accepted and put into action in 2017 as Ethereum Improvement Proposal 20. (EIP-20). But it still had the name it had when it was first submitted, because the post went viral among Ethereum users.
Based on their market value, here are the top five ERC-20 tokens:
Tether (USDT) – Blockchain Token Standards
USDT is a stable coin that is backed by fiat money and follows the value of the US dollar. It is the most traded cryptocurrency, the first stablecoin, and the biggest stablecoin by market cap in the whole crypto market. Even though USDT is also available on Tron, EOS, Liquid, and Algorand, the most popular version is the token that is issued by Ethereum.
USD Coin (USDC) – Blockchain Token Standards
USDC calls itself a “fully fiat-collateralized stablecoin,” and it is tied to the US dollar at a 1:1 ratio. In terms of market capitalization, it is catching up to USDT, with over 30% of the stablecoin market.
Binance USD (BUSD) – Blockchain Token Standards
As was said above, BUSD is a stablecoin issued by Paxos and Binance that is backed by fiat currency and is worth the same as the US dollar. Its ERC-20 version makes loans, payments, and other kinds of payments on the Ethereum ecosystem easier.
Dai (DAI) – Blockchain Token Standards
Maker is the program that gives out DAI. It is the first crypto-backed stablecoin that follows the US dollar’s value. Unlike USDT, USDC, and BUSD, DAI collaterals are crypto assets that are stored in smart contracts instead of centralized custodians.
Uniswap (UNI) – Blockchain Token Standards
Uniswap is a DEX that makes it easy to swap ERC-20 tokens without a middleman. Users need only connect their Web3 wallet to Uniswap. UNI is the native token of Uniswap. It is used for governance.
FAQs – BEP2-BEP20-ERC20
Is BEP2 better than ERC20?
ERC20 token development is the best for you if you want to make your app easy to build and want to take advantage of Ethereum's global reach and popularity. But choose BEP-20 token development if you want the best, most innovative token with the lowest fee and processing time.
How do I know if I have ERC20 or BEP20?
When you open your Quidax app, you'll see that many of the coins are BEP20 tokens and some are also ERC20. Gas prices are the main difference between the two chains. When you use an ERC20 token to make a transaction, you pay Ethereum gas fees.
What wallets support bep2?
Hardware wallets like the Ledger Nano X, Ledger Nano S, Trezor Model T, and Coolwallet S also support the BEP-2 standard. In the BNB Beacon Chain Explorer, you can look at all of the tokens that were made on the BNB Beacon Chain.
Is BEP2 smart chain?
BEP2 is a standard for tokens on Binance Chain, and BEP20 is a standard for tokens on Binance Smart Chain. Please don't use an ERC20 address as a BEP20 withdrawal address.
Conclusion: Which Blockchain Token Standards Should You Use?
If you’re a crypto user interested in dApps and DeFi in general, the most important thing to know is that BEP-2, BEP-20, and ERC-20 are all standards for tokens that their respective chains use to do different things. If your wallet supports these standards, the transactions are processed in the blockchains that go with them: Binance Chain for BEP-2, BSC for BEP-20, and Ethereum for ERC-20. BEP-2 is a good choice for DEX-based cryptocurrency trading because it has lower transaction fees, but it doesn’t work with smart contracts and isn’t compatible with EVM.
BEP-20 and ERC-20 both give you access to a wide range of decentralized applications (dApps) and smart contract tokens, but ERC-20 gives you access to a wider range of dApps. Also, please keep in mind that the number of dApps listed above is not complete, as more protocols have not been written down. But compared to the ERC-20 standard, the BEP-20 standard has lower transaction fees and faster processing times.
In the end, which token standard you use depends on your needs and whether or not the dApp you want to use it with supports it. Always do your research before using decentralized applications (dApps) or investing in cryptocurrency.
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