The Ultimate Guide To BEP-20 Tokens & Their Creation

Tokens are an integral part of the cryptocurrency industry. They are a kind of smart contract that can be sent, received, and 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 without any hindrances. These tokens are based on an underlying blockchain that provides the value, moves it around, and has the ownership of the tokens. 

BEP-20 tokens are one of the few that have recently taken the market by storm after it was launched. 

In this article, we will talk about the BEP-20 token in detail and understand how it differs from the other tokens in the market. 

What are BEP-20 Tokens?

BEP-20 is an extension of ERC-20, the most popular token standard on the Ethereum Blockchain. Similarly, BEP-20 is the token standard on the smart chain of the Binance platform and was produced as a technical specification. 

The primary motto behind launching this token was to facilitate the developers in developing similar tokens. These tokens can represent a company’s shares, the amount stored in a bank account, and anything of similar nature. 

The transactions done and included by the validators on BSC are incentivized and facilitated by BNB. 

How to Create Similar Tokens on The Binance Smart Chain?

Creating tokens similar to BEP-20 on the Binance smart chain is fairly simple. 

The basic functionalities of the tokens can be measured by the standards of BEP-20. The basic functionalities will include – 

• Transfers
• Balance returns
• Token ownership view
• Others.

There are multiple apps and sites used for this purpose. However, the process is similar for all: 

• 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 must have some BNB in your wallet to pay for the deployment of the contract.
• You have to enter the details of the token you want to create – you need to mention a token name and a unique symbol.
• Then, deploy the token- it 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 who has the authority to mint new tokens and stop minting further tokens. 

Capped BEP-20 Tokens: Before minting tokens, you must 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: Mint the tokens which you want to generate- you can do so 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 use this token as the blueprint for developing similar tokens.
• This type of token can represent multiple aspects of finance and other industries. For instance, it represents crypto assets and fiat currencies.
• Other cryptocurrencies can be pegged on this token from multiple blockchains.
• The token contract is made on the smart chain, which is another excellent aspect of these tokens.
• The Binance smart chain’s validators, who transfer the BEP-20 tokens, gain the transaction fee 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, swapping the BEP-20 tokens with BEP-2 tokens becomes easy. This is known as cross-chain compatibility.

Also Read: Polkadot: Learn How to Use It, Invest in It, and Build on It Today!

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.

For example, the 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 only generate similar tokens like BEP-20 on the Binance smart chain. 

Multiple wallets and sites support the minting of ERC-20, while only a handful of such sites allow the minting of BEP-20. 

Also Read: What is Coin Burn In Cryptocurrency? Why Are Coins Burnt?

BEP-2 and BEP-20

BEP-2 and BEOP-20 are like two sides of the same coin. Both are present on the Binance network and can be swapped.

While the former is on the Binance Chain, the latter is on the Binance smart chain. BEP-2 allows the issue of tokens on the Binance Chain along with the implementation of the tokens. The BEP-20 token does the same on the Binance smart chain.

Both are technical specifications created to represent different digital assets and goods that can be traded.

Conclusion

The BEP-20 token standard is dynamic with multiple features.

Being compatible with most of the tokens in the digital arena provides excellent grounds for developing new tokens. Furthermore, it is compatible with ERC-20 as well, and is known for its superior speed.

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