What are BEP-20 tokens and how can they be created in Binance Smart Chain?
Tokens are an integral part of the cryptocurrency industry. It is a type of smart contract that can be sent and received. Tokens represent digital assets with value. Tokens that are smart contracts have no issues such as downtime, fraud, censorship, or third-party interference. These contracts are executed as their schedule is set and without any hindrance. These tokens are based on an underlying blockchain that provides the value, moves it and has ownership of the tokens. Advertisement
BEP-20 tokens are one of the few such tokens that have taken the market by storm recently after their launch. In this article, we will talk in detail about the BEP-20 token. We will also check the differences between BEP-20 and other tokens on the same platform such as BEP2 or ERC20 and others.
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What are BEP-20 tokens?
BEP-20 is an extension of ERC-20, which is the most popular token standard in Ethereum Blockchain. Similarly, BEP-20 is the standard token on the Binance platform smart chain. This token defines who can use them, spend them and how and other related details. BEP-20 is compatible with BEP-2 and ERC-20 as there are multiple similarities. This token was produced for the Binance smart chain as a technical specification. The main motto behind the release of this token was to make it easier for developers to develop similar tokens. These tokens can represent shares of a company, as well as the amount stored in a bank account and anything of a similar nature. BNB facilitates transfers of these tokens. Transactions made and included by validators in BSC, are incentivized by BNB.
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How to create your tokens in Binance Smart Chain as BEP-20?
The process of creating tokens like BEP-20 on Binance Smart Chain is quite simple. Simple, there is a standard token which is BEP-20, you can easily create similar tokens on the BSC platform. The basic functionalities of the tokens can be measured against the BEP-20 standards. The basic functionalities will include — Transfers Transfers Balance Returns Token Ownership View Other. There are several applications and sites that can be used to create tokens similar to BEP-20 on the BSC platform. The process of creating these is similar across all platforms. All you need to do is …
Install the application: these are decentralized applications or DApps. Some of the popular apps that allow you to create BSC tokens are MetaMask and Trustwallet. You need to have some BNB in your wallet to pay for the contract deployment. Next, you need to enter the details of the token you want to create; you need to mention a token name and your token token that you want to provide to the token you create. Then deploy the token and the token is ready to use. You can create specific tokens such as limited tokens, mintable tokens and also burnable tokens.
How to create an ERC20 and BEP20 token?
Here are the details about the tokens you can create:
- Token Owner: Each token you create will have an owner. The owner will have the authority to mint new tokens and stop minting more tokens.
- BEP-20 tokens with limit: Before minting tokens, you must specify a limit or the maximum number of tokens you wish to mint (create). Once that number is reached, you will not be able to mint any more tokens.
- Burnable BEP-20 tokens: You can even destroy some of the tokens. These tokens can be burned when you need to reduce the amount of tokens in the market.
- Printable BEP-20 tokens: This is nothing more than minting the tokens you want to generate. You can mint tokens until the limited number of tokens is reached.
- Blacklisting tokens: Tokens can also be blacklisted. This can happen when the tokens or the site that generates them are malicious.
Benefits of BEP-20 tokens
Now let’s see how creating your BEP-20 token can help: it is a very flexible platform that allows developers to use this token as a model for developing similar tokens. There are multiple aspects in the financial industry and also in other industries that can be represented by this type of token. For example, it obviously represents crypto assets, then there are also fiat currencies that are represented by these tokens. Other cryptocurrencies can also be linked into this token from other blockchains. The token contract is done on the smart chain, which is another great aspect of these tokens. The validators on the Binance smart chain, who transfer the BEP-20 tokens get the transaction fee which is on BNB. This is similar to the BEP-2 tokens on Binance Chain. Developers can make use of both the Binance Smart Chain and Binance Chain worlds. While the former provides speed, the latter provides the platform to develop decentralized applications without putting pressure on the Binance network. With the Binance chain wallet extension, it is easy to exchange BEP-20 tokens for BEP-2 tokens. This is known as cross-chain compatibility.
BEP-20 vs. ERC-20
BEP-20 and ERC-20 are compatible and the former is an extension of the latter. However, there are some differences, as the BEP-20 token standard is for Binance Smart Chain, while ERC-20 is the token standard on the Ethereum blockchain. While ERC-20 can be used as a model for any token generated on the Ethereum blockchain, BEP-20 can only be used to generate similar tokens as BEP-20 on the Binance Smart Chain. Multiple wallets and sites are supporting ERC-20 minting, while there are a handful of these sites that allow BEP-20 minting.
BEP-2 and BEP-20
BEP-2 and BEOP-20 are like two sides of the same coin. On the Binance network itself, both are present. While the former is on the Binance chain, the latter is on the Binance smart chain. BEP-2 allows the issuance of tokens on Binance Chain along with the implementation of the tokens. While, on the other hand, the BEP-20 token does the same on the Binance smart chain. Both are technical specifications that are created to represent different digital assets and goods that can be traded. Both are present on the Binance network and can also be exchanged.
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Conclusion
The BEP-20 token standard is a dynamic token that has multiple features. Being compatible with most tokens in the digital realm provides an excellent basis for developing new tokens. It is also compatible with ERC-20 and is known for its excellent speed. Binance and BEP-20 token are different. Binance is a centralized exchange company but BEP-20 is a smart contract that built in a blockchain. Well, you can buy and sell BEP-20 token on decentralized exchanges such as Venice Swap, Uniswap etc.
