BEP-20

What is BEP-20?

BEP-20, short for Binance Smart Chain Evolution Proposal 20, is a token standard on the BNB Chain. Developed by Binance, it is heavily inspired by Ethereum’s ERC-20 standard, which has been used for numerous tokens on the Ethereum blockchain.

BEP-20 was created to facilitate the creation and management of tokens on BNB blockchain. It provides a flexible and interoperable framework that addresses some of the limitations of existing token standards.

Binance merged Binance Chain (BC) with Binance Smart Chain (BSC) to form the BNB Chain, a new, unified blockchain ecosystem. This merger aimed to combine the strengths of both chains to use BC’s high-performance and security with BSC’s smart contract functionality. The resulting BNB Chain offers a robust, interoperable platform for decentralized applications (dApps) and tokens (such as BEP-20), enabling seamless interactions between different blockchain ecosystems.

What are the features of BEP-20?

1. Interoperability: One of the standout features of BEP-20 is its interoperability. It ensures seamless compatibility with both BEP-2, a token standard on Binance Chain, and ERC-20, allowing for easy migration and integration of tokens across different blockchains. This interoperability is crucial for fostering a versatile blockchain ecosystem.
2. Flexibility: BEP-20 also offers remarkable flexibility. It allows developers to create and customize tokens to fit specific use cases, from utility tokens for DApps, to governance tokens for decentralized finance (DeFi) platforms. This flexibility makes BEP-20 an attractive choice for a wide range of blockchain projects.
3. Efficiency: Efficiency is another key feature. Transactions involving BEP-20 tokens on BNB Chain are typically faster and cheaper compared to those on Ethereum, thanks to its high throughput and lower fees. This efficiency is a significant advantage for users and developers looking to minimize costs and maximize transaction speed.

What are the Parameters of BEP-20?

The BEP-20 token on the Binance Smart Chain works similarly to the ERC-20, the most popular Ethereum token standard used in most blockchain applications. The parameters of BEP-20 token standard are as follows ¹:

• Can Mint: This parameter controls whether more tokens may be created to gradually raise the supply of a BEP-20 token.
• Can Burn: This is a deflationary parameter that determines whether tokens may be burnt, which over time reduces the supply of a BEP20 token.
• Can Pause: This parameter is helpful when the platform is vulnerable to assaults or other situations. This describes the possibility of pausing all token-related actions in the case of a malicious attack or platform breach.
• Blacklist: This parameter prohibits the use of harmful addresses..

Primarily created as a technical specification for BNB Chain, BEP-20 provides developers with a flexible framework for launching various tokens. These tokens can represent a range of assets, from business shares to stablecoins backed by dollars in a secure vault. The most common BEP-20 tokens on BNB Chain are BNB (the native token of the BNB ecosystem), CAKE (created by Pancakeswap, a DEX on BNB Chain) and Safemoon.

Conclusion

BEP-20 is a vital component of the BNB Chain ecosystem, offering a flexible, efficient, and interoperable token standard. The BEP-20 its advantages and potential for future growth position it as a key player in the blockchain industry. As the technology evolves, BEP-20 will continue to shape the digital assets and blockchain applications on the BNB Chain.

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