What is BEP 20? BEP 20 is a token issuance standard on the BNB Chain network, formerly Binance Smart Chain. So what standards does BEP 20 have and what are the differences? Let’s find out together in the article below.
To better understand BEP 20, people can refer to some of the articles below:
- What is ERC 20? Pros and Cons of ERC 20
- What is ERC 721? Standards for NFTs on Ethereum
- What is ERC 1155? Harmonious Combination Between ERC 20 and ERC 721
What is BEP 20?
Overview of BEP 20
BEP stands for Binance Smart Chain Token Standard Proposal. BEP 20 is used to introduce and manage tokens on the BNB Chain, making token creation and management easier for developers and users.
It can be said that BEP 20 is a similar version of ERC but on BNB Chain.
Standards form BEP 20
- Token Name: The token name is usually the project name.
- Symbol: Token code
- Decimal: How small the token can be divided. For example, Bitcoin can be divided up to 1 satoshi and 1 Satoshi = 0.00000001 BTC.
- totalSupply: Total supply of issued tokens.
- balanceOf: Check token balance in Ethereum wallets.
- getOwner: Tokens under BEP 20 will never be sent to BEP 2 on the BNB Beacon Chain.
- transfer: Function to manage token movement to user wallet addresses.
- transferFrom: Allows token holders to exchange and transfer tokens between each other.
- Approve: Checking each user transaction helps the total supply not change and also prevents users from fraudulently creating more tokens.
- Allowance: Check the balance to see if the wallet address has enough tokens to send?
Advantages of BEP 20 Standard
Some advantages of BEP 20
- Scalability is better with Ethereum, so transactions and interactions with Smart Contracts become faster and cheaper than with Ethereum.
- BEP 20 can be easily created on the BNB Chain network saving developers time & costs.
- BEP 20 is supported by all infrastructure platforms, DeFi,… on the BNB Chain ecosystem.
Some disadvantages of BEP 20
- Because it is so easy to create, users use BEP 20 in scams a lot.
- The security of BEP 20 Tokens can be attacked by vulnerabilities in smart contracts on the BNB Chain.
Summary
BEP 20 is the most popular token standard on the current BNB Chain ecosystem. It can be said that in the future it will be difficult to have a standard that can replace BEP 20 on the BNB Chain.
