Just like the leading crypto asset Ethereum, Binance also wants to have its own standard token, blockchain, and smart contract implementation . If Ethereum has ERC-20 as one of the popular token standards on its network, then Binance has two different token standards, namely BEP2 and BEP20. In short, BEP2 and BEP20 are token standards for the BNB and BSC blockchain networks.
So, what is the difference between BEP2 and BEP 20? Before understanding the difference between the two, let’s look at what BEP2 and BEP20 are in the following review.
Know What is BEP2
In simple terms , BEP ( Binance Chain Evolution Proposal 2) is the token standard that applies on the Binance Chain network.
BEP2 ( Binance Chain Advancement Proposition 2) is the symbolic standard used to convey and make new tokens on the Binance Chain organization. BEP2 turns into a norm or specialized decide that applies so different tokens can work ideally in the Binance Chain environment.
Although BEP20 token generator has an important role in regulating the most basic features and regulations of all tokens originating from the Binance Chain. The system will still free or not limit the functionality of the various types of tokens. That way, these tokens can be implemented according to the goals of the developers.
In addition, BEP2 token transactions are also supported by three well-known wallets in the world, such as Ledger Wallet, Trust Wallet, and Trezor Model T. To be able to transact comfortably using BEP20 tokens, users need to pay a gas fee or transaction fee.
The standard token belonging to the Binance chain can also represent various crypto assets and goods that can be used. Through this standard, the network ensures that all existing tokens can work and interact properly in the Binance ecosystem.
Advantages of BEP2
Users can install Binance Chain on MetaMask Wallet. One of the advantages offered by BEP2 is the convenience of users when trading between various crypto assets, in a decentralized exchange (DEX).
However, Binance Chain Evolution Proposal 2 or BEP2 does not support smart contract technology , which is currently the concern of many parties.
Know What is BEP20
In simple terms , BEP20 is the token standard that applies on the Binance Smart Chain (BSC) network.
BEP20 is a Binance Smart Chain (BSC) token standard that bears similarities to Ethereum’s dedicated protocol, ERC-20. This token was created to make the network more compatible with the Ethereum Virtual Machine (EVM), an Ethereum platform for developing smart contracts .
In addition to being specifically designed to be compatible with ERC-20 tokens, it is also a versatile token standard for BEP2 tokens. The token standard will later ensure that all tokens have basic capabilities, such as transferring, refunding, and checking token ownership.
The transaction method with BEP20 is almost the same as BEP2. Users will need BNB coins first, so that later they can pay gas fees or transaction fees. Launching from Phemex.com , BEP20 is currently supported by eight wallets , including Math Wallet and Arkane Wallet.
Advantages of BEP20
BEP20 is a programmer -friendly token standard , allowing anyone to create tokens on the network at a lower price. This makes it easier for users to access a large number of DApps.
BEP20 has a standard set of directives or rules for token management. The BEP20 coin is also known to be interoperable with ERC20 and BEP2 tokens.
How to create BEP20 tokens, withdraw BEP-20 on Binance Smart Chain, get a BEP20 address on Trust Wallet, connect Trust Wallet to Binance Smart Chain (BEP20), and add BNB Chain (BEP20) to MetaMask, very easy and fast. You also don’t need to login, code, or make certain settings. Below is the complete guide.
So, what are the popular token standards besides BEP2 and BEP20?
ERC-20
Ethereum is a decentralized software platform built by Vitalik Buterin in 2015. ERC-20 is one of the tokens launched on the Ethereum select blockchain network.
ERC-20 or the abbreviation of Ethereum Request for Comments is the standard token issued by the leading cryptocurrency blockchain, Ethereum. Just like Bitcoin crypto assets, ERC-20 tokens can be used to make transactions or even trade on cryptocurrency exchanges around the world.
This identical nature makes the ERC-20 token easily exchangeable with other crypto assets.
The ERC-20 standard comes with various stringent requirements that developers must follow. This, of course, is not very different from the internet, where websites will not function properly unless they are fully HTTP compliant. The level of versatility offered by the ERC-20 token is one of the reasons why it has become so popular.
ERC-20’s smart contracts , written in a programming language known as Solidity. Solidity is a programming language that allows developers to do many things on a network.
Many experts say that Solidity at first glance has similarities with the Javascript programming language.
Advantages of ERC-20 Token
ERC-20 token transactions are uniform and fast
Efficient transaction confirmation
Reduced risk of contract termination
Implementation of the ERC-20 function connects web clients and tokens efficiently.
ERC-20 vs BEP20 comparison
Many parties often compare the advantages and disadvantages of the two tokens owned by the world’s leading cryptocurrency blockchain. Below is an explanation of the difference between ERC-20 vs BEP20.
When compared to the number of transaction fees that must be paid by users, of course BEP20-based transactions offer a much lower nominal compared to ERC-20.
In dollar terms, the average transaction amount on BEP20 is no more than a few cents. Meanwhile, the average gas fee for ERC 20 is around 12 US dollars or equivalent to Rp. 171 thousand (assuming an exchange rate of Rp. 14,311).
Although it has a gas fee that is adrift of BEP20 token development. Ethereum is the world’s largest smart contract platform, with an estimated total of 3,000 decentraland applications based mostly on the ERC-20 token. The number of DApps is certainly far from what BEP20 has.
The next point of difference, although the BEP20 token offers a much cheaper nominal gas fee and faster processing time. The PoSA BSC validation model has in fact been criticized by several parties, due to potential weaknesses in its security.
Even to verify blocks in the network, the BSC only provides 21 selected validators. Of course, this number of validators is inversely proportional to Ethereum’s total validators reaching more than 70 thousand validators. With the low number of validators owned by the BSC network, it can cause a crisis of trust among its users.
In short, the BEP20 token offers a much lower nominal gas fee at the expense of decentralization and network security. Therefore, in terms of security, some users consider that ERC 20 is comparatively far superior to BEP20.
