Tokens are an integral part of the cryptocurrency industry. It is a type of smart contract that can be sent and received. Tokens represent digital assets with a value. Tokens being smart contracts do not have issues like downtime, fraud, censorship, or third-party interference. These contracts run as per their programming is set and without any hindrances. These tokens are based on an underlying blockchain that provides the value and moves it around and has the ownership of the tokens.
BEP-20 tokens are one of the few such tokens which have taken the market with a blow recently after it got launched. In this article, we will talk about the BEP-20 token in detail. We will also check the differences between the BEP-20 and other tokens on the same platform like BEP2 or ERC20 and others.
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What are BEP-20 Tokens?
BEP-20 is an extension of ERC-20 which is the most popular token standard on the Ethereum Blockchain. Similarly, BEP-20 is the token standard on the smart chain of the Binance platform. This token defines who can use them, spend them, and how and other related details. BEP-20 is compatible with both BEP-2 and ERC-20 as there are multiple similarities.
This token was produced for Binance smart chain as a technical specification. The primary motto behind launching this token was to facilitate the developers in developing similar tokens. These tokens can represent shares of a company as well as the amount stored in a bank account and anything of similar nature. The transfers of these tokens get facilitated by BNB. The transactions done and included by the validators on BSC, are incentivized by BNB.
How to Create Your Tokens on Binance Smart Chain like BEP-20?
The process of creating BEP-20 like tokens on the Binance smart chain is quite simple. Simple there is a standard token which is BEP-20, you can easily create similar tokens on the BSC platform.
The basic functionalities of the tokens can be measured by the standards of BEP-20. The basic functionalities will include –
- Balance returns
- Token ownership view
There are multiple apps and sites which can be put to use for creating the BEP-20 like tokens on the BSC platform. The process of creating these are similar across all the platforms. All you need to do is to –
- Install the application – these are decentralized applications or DApps. Some of the popular applications that allow you to create BSC tokens are MetaMask and Trustwallet.
- You need to have some BNB in your wallet to pay for the deployment of the contract.
- Then you have to enter the details of the token you want to create – you need to mention a token name and its symbol which you want to provide to the token you create.
- Then deploy the token and the token will be ready for use.
- You can create specific tokens like capped tokens, mintable tokens, and also burnable ones.
Here are the details about the tokens that you can create –
Owner of the Token: Every token you create will have an owner of it. The owner will have the authority to mint new tokens as well as stop minting further tokens.
Capped BEP-20 Tokens: Before minting tokens, you have to specify a limit or the maximum number of tokens you want to mint (create). Once that number is reached, you won’t be able to mint more tokens.
Burnable BEP-20 Tokens: You can even destroy some of the tokens. These tokens can be burnt when you need to reduce the number of tokens in the market.
Mintable BEP-20 Tokens: This is nothing but minting the tokens which you want to generate. You can mint the tokens until the capped token number is reached.
Black-listing of tokens: The tokens can be black-listed as well. This can happen when the tokens or the site generating the tokens are found to be malicious.
Benefits of BEP-20 Tokens
Now let us see how creating your BEP-20 token can help –
- It is a very flexible platform that allows the developers to this token as the blueprint for developing similar tokens.
- There are multiple aspects in the finance industry and other industries as well which can be represented by this type of token. For instance, it represents crypto assets obviously, then there are fiat currencies as well which get represented by these tokens.
- Other cryptocurrencies can be pegged on this token from other blockchains as well.
- The token contract is made on the smart chain which is another great aspect of these tokens.
- The validators on the Binance smart chain, who transfers the BEP-20 tokens gain the transaction fee which is in BNB. This is similar to BEP-2 tokens on the Binance Chain.
- The developers can make use of both the worlds – Binance Smart chain as well as Binance Chain. While the former provides speed the latter provides the platform for developing decentralized applications without putting pressure on the Binance network.
- With the Binance chain wallet extension, it is easy to swap the BEP-20 tokens with BEP-2 tokens. This is known as cross-chain compatibility.
BEP-20 vs. ERC-20
BEP-20 and ERC-20 are compatible and the former is an extension of the latter. However, there are certain differences like BEP-20 token standard is for the Binance Smart Chain whereas the ERC-20 is the token standard on the Ethereum chain. While ERC-20 can be used as a blueprint for any token generated on the Ethereum blockchain, the BEP-20 can be only used for generating similar tokens like BEP-20 on the Binance smart chain. Multiple wallets and sites are supporting the minting of ERC-20 while there are a handful of such sites which allow minting of BEP-20.
BEP-2 and BEP-20
BEP-2 and BEOP-20 are like two sides of the same coin. On the Binance network itself, both are present. While the former one is on the Binance Chain, the latter is on Binance smart chain. BEP-2 allows the issue of tokens on the Binance Chain along with the implementation of the tokens. While on the other hand, the BEP-20 token does the same on the Binance smart chain. Both are technical specifications that are created for representing different digital assets and goods which can be traded. Both are present on the Binance network and they can be swapped as well.
BEP-20 token standard is a dynamic token that has multiple features in it. Being compatible with most of the tokens in the digital arena provides great grounds for developing new tokens. It is compatible with ERC-20 as well and it is known for its excellent speed.
BEP-20 is known as Peggy coins as different crypto tokens are on other blockchain but can be pegged for BEP-20
The price is $349. Infrastructure Tool of the Binance Smart Chain Ecosystem. Smart BEP-20 token distribution to thousands of addresses. The cost of creating a contract is also indicated in the field before creating a contract.
BEP–20 is a Binance Smart Chain token standard created with the intention of extending ERC-20.
Smart Chain wallet will be enabled by default as soon as you Create a new wallet. If you do not see it yet, try to do a search and look for “Smart Chain”. Open your Smart Chain wallet, tap on Receive to get your BEP20 address.