What is the Definition & Meaning of BEP20?
BEP20 is the token standard applied to tokens on Binance Smart Chain (BSC), developed from the ERC20 standard on Ethereum. This is a technology that allows creating and managing tokens such as utility, stablecoin and security on BSC, with outstanding compatibility.
Follow our article to learn more about the application and importance of BEP20 in the modern blockchain ecosystem.
What is BEP20?
BEP20 is the token standard applied to any token launched on the BSC. It’s an extension of the ERC20 standard on Ethereum, allowing developers to create and utilize various types of tokens on the BSC network. BEP20 defines how tokens are used and interacted with, and it is fully compatible with both ERC20 on Ethereum and BEP2 on Binance Chain. This compatibility enabled dApps on BSC, such as PancakeSwap, to execute cross-chain transactions quickly and efficiently.
Standard parameters of BEP-20 token
The standard parameters of a BEP-20 token include:
👉 Can Mint: Determines the ability to mint new BEP-20 tokens to increase the token supply. When activated, the contract manager can create additional tokens.
👉 Can Burn: Governs the ability to burn BEP-20 tokens to decrease the token supply. This function helps control inflation and maintain the token's value.
👉 Can Pause: Allows for pausing the functionalities of the BEP-20 token contract in case of emergencies or to protect against attacks.
👉 Blacklist: Enables the contract operator to blacklist user addresses to prevent unwanted transactions or activities with the token.
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Advantages and disadvantages of BEP-20
Advantages
🍭 Compatibility: BEP-20 is fully compatible with other token standards such as ERC-20 on Ethereum and BEP-2 on Binance Chain, facilitating easy integration and usage across multiple blockchain platforms.
🍭 Low costs: BSC stands out with lower transaction fees compared to Ethereum, reducing costs for transactions and operations related to BEP-20.
🍭 Fast transaction speed: BSC boasts faster transaction processing capabilities compared to many other blockchains, a feature that also applies to BEP-20 tokens on this platform.
🍭 Diverse application: BEP-20 supports various types of tokens such as utility tokens, stablecoins, and security tokens, enabling projects to develop and deploy a wide range of applications on BSC.
🍭 Large community: Due to the robust development of Binance Smart Chain and support from Binance Exchange, BEP-20 attracts a large community and interest from investors and developers alike.
Disadvantages
However, there are also disadvantages of BEP20 that need to be mentioned:
🐡 Centralization: Like all major blockchain platforms, Binance Smart Chain and BEP-20 exhibit a higher degree of centralization compared to fully decentralized blockchains like Ethereum in certain aspects.
🐡 Dependency on Binance: Because BSC is developed and managed by Binance, reliance on Binance's support and development can pose risks concerning the future of BEP-20 and the BSC ecosystem.
Top 3 secure BEP-20 token storage wallets
Here are three highly rated wallets for storing BEP-20 tokens in terms of safety and reliability:
Trust Wallet
One of the most popular and highly regarded wallets for BEP-20 tokens today. Developed by Binance, Trust Wallet provides storage and management features for BEP-20 and BEP-2 tokens. Trust Wallet also integrates features such as trading, staking and token swapping.
Metamask
Known for its security and convenience, Metamask is widely used on Ethereum but also supports BEP-20 token storage on Binance Smart Chain. It offers a simple and user-friendly interface, allowing users to directly interact with decentralized applications on BSC.
Math Wallet
Math Wallet is a multi-platform storage solution that supports BEP-20 and BEP-2 tokens on Binance Smart Chain. Additionally, it supports storage for various cryptocurrencies like Bitcoin, Ethereum, TRON and EOS. A notable feature of Math Wallet is its integration with both cryptocurrency wallets and hardware wallets, making asset management easier and more secure.
See more articles on the same topic, such as:
⏩ https://azcoin.localinfo.jp/posts/54416777
⏩ https://azcoin3.wordpress.com/2024/06/27/what-is-a-lending-coin/
How to issue BEP-20 Tokens
To issue a BEP-20 token, users need to utilize a smart contract development tool like Remix or Truffle. Here are the steps to follow:
🌳 Create a new smart contract: Write the BEP-20 code in a new smart contract.
🌳 Customize parameters: Modify parameters such as name, symbol, decimal places, total supply, and contract address.
🌳 Deploy the contract: Deploy the smart contract on Binance Smart Chain using a wallet that supports BEP-20 tokens.
🌳 Confirm and activate the contract: Verify and activate the contract, then wait for it to be recorded on the BSC blockchain.
Once the contract is successfully deployed, users can manage and utilize their BEP-20 tokens on the Binance Smart Chain.
Summary
Above we have summarized the definition and meaning of the BEP20 standard, which is an important token standard on the Binance Smart Chain network. Hopefully this information has helped you better understand how BEP20 works and its role in the blockchain ecosystem.