New technological breakthroughs such as NFTs and DeFi are attracting a lot of attention in the Web3 world. With the development of new blockchain networks, Binance Smart Chain (BSC) has become more potent in recent times.
The BEP20 token standard was introduced by Binance Smart Chain, and it has gained a lot of traction in the Web3 developer community.
What is BEP20?
BEP20 is a Binance Smart Chain token standard (BSC) to create fungible tokens that run on BSC. In many aspects, it is similar to Ethereum. The use of BNB as payment for BEP20 token transactions on the BSC network, which is the same as ETH on Ethereum, also demonstrates the similarity between BEP20 and ERC20.
BEP20 is built for interoperability, and it may be converted to BEP2 and ERC20-compatible tokens via a cross-chain bridge that connects it to other blockchain networks. BEP20 was designed to handle all transaction needs across all BSC DApps.
Users can create Binance Smart Chain BEP20 tokens with the help of simple tutorials. As a result, BEP20 is a crucial part of BSC's evolution as a Web3 development tool.
Differences between BEP20 and BEP2 tokens
The difference between BEP2 vs BEP20 lies in the operational side as well as functionality.
BEP-2 is the traditional Binance Chain's token standard, whereas BEP-20 is the DeFi-based Binance Smart Chain's token standard. Because of these distinctions, the two wallets have different address formats.
The address for BEP2 wallets begins with bnb and needs the usage of a MEMO. This is a one-of-a-kind identification for each account that Binance uses to deliver funds to the correct one.
BEP20 wallet addresses, on the other hand, begin with the letter 0x, much like other Ethereum addresses. These distinctions are also visible when using other wallets, such as Coin98 Wallet, and in any other case where BEP2 and BEP20 must be distinguished.
Below are some further functionality differences between BEP2 and BEP20:
BEP20 Token Standard Parameters
In terms of implementation coding for BEP20 tokens, it’s a need to understand the BEP20 token standard parameters, such as:
- Can Mint: For the BEP20 standard, the "Can Mint" parameter serves as the inflationary parameter, which specifies the possibilities for minting new BEP20 tokens in order to increase the BEP20 supply.
- Can Burn – The "Can Burn" parameter serves as a deflationary companion to the "Can Mint" option. The "Can Burn" parameter can be used to determine whether tokens can be burned, resulting in a supply reduction over time.
- Blacklist - The "Blacklist" parameter can be used to blacklist or ban a suspected BEP20 address or other malicious addresses.
- Can Pause – The "Can Pause" parameter is a novel and valuable security feature that protects against malicious assaults. Users can suspend all BEP20 token actions in the case of a malicious attack or platform downtime. The "Can Suspend" parameter, on the other hand, is centralized, and the inventor or a user address with similar authority can pause the BEP20-based network's operations.
Pros and Cons of BEP20 tokens in Blockchain
BEP20 tokens have the following advantages:
- Compatible with both BEP2 tokens and ERC20 tokens because Binance Smart Chain supports both the Binance Chain and the Ethereum blockchain.
- The platform designed with BEP20 will enable both Proof of Stake and Distributed Proof of Stake.
- The BEP20 token standard is more widely used and trusted. As a result, the biggest crypto exchanges will easily list these BEP20 tokens.
- Users can create a token using BEP20 for a minimal cost because it just requires a little amount of gas.
- BEP20 token transactions will be faster, and trading will be more reliable and transparent.
- Several blockchain wallets support BEP20 tokens. As a result, users can receive, store, and transfer BEP20 tokens throughout the globe with ease.
- It is feasible to manufacture a large number of tokens in a short period of time using the BEP20 standard token.
- Because both the BEP2 and BEP20 tokens are generated by the Binance blockchain, these tokens can easily be swapped.
BSC, on the other hand, has several drawbacks. The difficulty with the community governance system is that it allows a tiny group of people to slice out other members. This is one of the reasons why BSC is accused of being prone to centralization.
Another issue with these systems is that they are vulnerable to malicious conduct by the most powerful community, similar to 51% attacks, which are caused by network-controlling miners.
How to issue BEP20 Tokens
Users can use Token Issuer on Coin98 Exchange to issue BEP20 tokens conveniently and promtly.
Token Issuer is a special tool that enables both Coin98 Exchange & Coin98 Wallet users to issue tokens on their favorite blockchains or even carry their names at their disposal. Currently, Coin98 does not charge any service fee on this tool, users just need to pay the network fee (gas) and immediately possess their own tokens in just a few minutes with no coding experience.
Step 1: Visit the link: terminals.coin98.com/issuer
Step 2: Select the Binance Smart Chain network. The system would find the respective chain's wallet.
Step 3: Fill in the following information:
- Token name: The name of the token.
- Token symbol: The symbol of the token in upper case (cannot be more than 5 characters).
- Total supply: The total amount of tokens to issue.
- Decimal Points: The number of decimal places in the token's unit.
- Token Burn & Token Mint: Users can consider two options when issuing the token. Choose or not choose both options are optional but bear in mind that if users don't choose any, the initial aggregate supply will not be allowed to change.
- Token logo: Click on the plus icon to upload the token's logo.
- Owner Address: The address receiving the issued tokens. The system will automatically fill in the connected wallet address or you can use another wallet address.
Note: When issuing, the token issuance fee is still charged on the connected wallet. To change the address of your connected wallet, follow these steps:
- Select the wallet address at the top right corner of the screen
- Select the wallet you want to connect.
- Click Issue.
Step 4: The system will ask users to pay a network fee to issue tokens. Users need to prepare enough fees for this step. If you agree, click Confirm on the pop-up confirmation.
You need to prepare enough fees for this step. If you agree, click Confirm on the pop-up confirmation.
There will be a pop-up announcement at the bottom right corner to redirect you to view the token information.
This article has provided a comprehensive overview of what BEP20 is, as well as some prominent examples for this topic! If you find it useful, please share it with your friends!
Let us know what you think in the comment section below!