SearchSearchSearchFeb 17, 2025
4 min read
A token standard in the context of cryptocurrency refers to a set of rules or guidelines that define how tokens on a particular blockchain can behave, interact, and be used. BEP-20 is a token standard on BNB Smart Chain (BSC) that extends ERC-20, the most common Ethereum token standard. These standards ensure that tokens are compatible with various platforms, wallets, and decentralised applications (dApps), allowing for smooth interoperability across the blockchain ecosystem.
BNB also had the BEP-2 standard earlier for its BNB Beacon Chain, however in 2024, BNB Beacon chain sunset, completely shutting down its operation.
In order to understand the contents of this blog, you will need to have basic knowledge of blockchains and its architecture. If not, we suggest you read up Fundamentals of Blockchain Architecture.
The key features of BEP-20:
BEP-20 tokens must implement several core functions and events, which ensure proper behavior across the BSC ecosystem.
Basic Functions
BEP-20 token smart contracts support the below functions
In order to know more about smart contracts and how you can create one on your own contracts on OpenZeppelin check out our article on Smart Contracts 101.
If you are a developer, then you can also check out the in-depth official specification in BNB’s github.
DApps Supporting BEP-20 Tokens
BEP-20 tokens are supported by various types of DApps.
Decentralised Exchanges (DEXs):
DeFi Platforms:
Examples of BEP-20 Tokens
Tokens can be launched on BSC as BEP-20 tokens or certain other ERC-20 or SPL tokens can be pegged to their versions on BEP-20 through bridges or wormholes.
Several popular tokens use the BEP-20 standard, including:
| Feature | ERC-20 (Ethereum) | BEP-20 (Binance Smart Chain) |
|---|---|---|
| Blockchain | Ethereum | Binance Smart Chain (BSC) |
| Transaction Speed | Slower due to congestion and more complex consensus mechanism | Faster (around 3 seconds per block) |
| Transaction Fees | Higher fees | Lower fees |
| Ecosystem | Most widely adopted in DeFi and dApps | Growing ecosystem, especially in DeFi |
| Network Consensus | Proof of Stake (PoS) | Proof of Staked Authority (PoSA) |
| Interoperability | Native to Ethereum wallets and dApps | Compatible with Ethereum wallets (e.g., MetaMask) |
| Security | High security due to large community | Secure, but newer network with smaller dev community |
Which One to Choose?
Both standards are compatible with each other in the sense that cross-chain bridges allow users to move tokens from one network to another, opening the door for more flexibility in how tokens are used across different blockchains.
💡If you are launching a new token, an ERC-20 or SPL token will bring you more initial liquidity and visibility due to larger community size of Ethereum and Solana. A new token as BEP-20 will make more sense if specifically benefitting from the BNB ecosystem.
Token Standards solve for different purposes within a blockchain. For example ERC-721 introduced the standard for NFTs, ERC-1400 introduced a specialised standard for security tokens. Different token standards are required so that different use cases can be built on-chain with rules custom to each use case.
Some important standards are as below
BEP-20 tokens offer a powerful and cost-efficient alternative to ERC-20 tokens for developers looking to launch tokens on the Binance Smart Chain. With lower transaction fees and faster speeds, BEP-20 has become a popular choice for DeFi projects and decentralized applications. Whether you choose ERC-20 or BEP-20 depends on your needs and which blockchain ecosystem you prefer. However, the compatibility between both standards ensures that you can move tokens across different chains using cross-chain bridges, providing flexibility and opportunities for developers and users alike.
What is a BEP-20 token?
BEP-20 is a token standard on Binance Smart Chain (BSC), defining how tokens interact within the BSC ecosystem, similar to ERC-20 on Ethereum.
How do BEP-20 tokens differ from ERC-20 tokens?
BEP-20 tokens are faster, cheaper, and run on Binance Smart Chain, whereas ERC-20 tokens are on Ethereum with higher fees and slower transaction speeds.
What are some examples of BEP-20 tokens?
Popular BEP-20 tokens include BNB, PancakeSwap (CAKE), Tether (USDT), and SafeMoon.
Why choose BEP-20 over ERC-20?
BEP-20 offers lower transaction fees and faster processing times, making it ideal for cost-effective dApp and DeFi development on Binance Smart Chain.
Can BEP-20 tokens be used across different blockchains?
Yes, BEP-20 tokens can be transferred across different chains using cross-chain bridges, providing flexibility in token usage.
The information provided in this blog is based on publicly available information and is intended solely for personal information, awareness, and educational purposes and should not be considered as financial advice or a recommendation for investment decisions. We have attempted to provide accurate and factual information, but we cannot guarantee that the data is timely, accurate, or complete. 1 Finance Private Limited or any of its representatives will not be liable or responsible for any losses or damages incurred by the Readers as a result of this blog. Readers of this blog should rely on their own investigations and take their own professional advice.
