What is BEP20 Token?

BEP20 Token Development

BEP20 is a developer-friendly token standard that allows anyone to deploy fungible digital currencies or tokens on Binance Smart Chain. What's more, leading digital assets on other chains can be ported onto Binance Smart Chain in the form of pegged BEP20 tokens.

The discussions on the BSC BEP20 standard for tokens rely heavily on a basic understanding of BEP and the BSC connection. BSC or Binance Smart Chain is the first thing you need to understand to set the ground for discussions about BEP20. Binance Smart Chain is the dedicated blockchain of Binance for operating smart contracts. The BSC works in parallel or in collaboration with the Binance Chain, the first blockchain of the Binance crypto exchange.

BEP20 basically refers to a token standard used for creating tokens on BSC, just like ERC20 for creating tokens on Ethereum. It is a critical tool for facilitating smart contract development on the Binance Smart Chain. We shall arrive at a detailed discussion on ‘what is BEP20’ later. For now, you must note that BEP stands for “Binance Smart Chain Evolution Proposal.”

Definition of BEP20

The first thing you need to know before creating a BEP20 address would point at the definition of the BEP20 standard. It is a token standard for Binance Smart Chain and works like the ERC20 standard in many ways. The token standard specifies some clear rules for all BSC-based tokens. If you look closely, the BEP20 standard for Binance Smart Chain is applicable for any token created or launched on BSC. Some of the examples include security tokens, utility tokens, and stablecoins. In addition, BEP20 also offers support for creating “Peggy Coins,” a unique category of crypto tokens you can peg against various assets.

The similarity between BEP20 and ERC20 becomes clearly evident in the use of BNB as payment for transactions with BEP20 tokens on the BSC network. Seems similar to gas fees on Ethereum, doesn’t it? Anyone can create Binance Smart Chain BEP20 tokens with the help of simple tutorials. Therefore, BEP20 is an integral aspect of the growth of BSC as a vital tool for web3 development.