What is the Difference Between an ERC-20 and BEP-20 Token?

What is the Difference Between an ERC-20 and BEP-20 Token?

The two largest Blockchains in the world, Ethereum and Binance Smart Chain have developed their Token standards to increase blockchain efficiency during programming, solving the scalability issues with Bitcoin. As well as making the interaction with the Blockchain accessible and flexible.

ERC (Ethereum Request for Comments) or BEP (Binance Evolution Proposal) are proposals that could become programming standards that ensure new tokens perform basic functions such as address retrieval, interoperability with other tokens, different wallets and more. They are essentially blueprints to help build a token. For details on what is ERC-20 & BEP-20, what is the difference between them? Check out the article about what we share below!

What is ERC-20 Token?

ERC-20 is a technical standard used to issue and deploy tokens on the Ethereum network, a form of Fungible Token. ERC-20 provides developers with a list of rules that must be followed allowing ERC-20s to work seamlessly within the Ethereum platform. ERC-20 was proposed in November 2015 by Vitalik Buterin and Fabian Vogelsteller. By following the outline, developers don't need to reinvent any other structure. Instead, they can build on a foundation that is already used throughout the industry.

The highlight of ERC-20 is its flexibility, allowing other tokens and software to integrate with the same standard to facilitate faster, more efficient and global transactions. Compliance with these ERC-20 standards keeps the protocols in line with basic functionality while allowing the ability to take advantage of the openness available on Ethereum.

The ERC-20 is listed as having six key features and is always consistent: BalanceOf, TotalSupply, Transfer, TransferFrom, approve and allowance. With investors they can view account token balance, view total token offer information, show users submitting tokens and enable automatic submission on behalf of holders, etc This standard can be used to develop a wide range of different tokens.

From the creation of the most popular stablecoins to non-fungible tokens and DeFi assets. It can be said that ERC-20 is one of the backbones for all cryptocurrencies. It has helped countless users realize the huge potential on Ethereum and opened the door for more networks and Blockchains to do the same.

What is the BEP-20?

The Binance Smart Chain was originally envisioned as an alternative to Ethereum and interoperability. The BEP-20 token emerged as an extension of the ERC-20 standard for the Binance Smart Chain. BEP-20 offers developers and programmers on Binance Smart Chain the same flexibility as ERC-20 on Ethereum. It provides a programmer-friendly outline to help launch tokens of all types on the Binance Smart Chain.

Similar functions like transfers, balances and allowances are all possible. Like its ERC-20 counterpart, the BEP-20 opens the door to other software and services. However, unlike the ERC-20, the BEP-20 can also interact with the Binance companion BEP-2. Two Binance standards BEP-2 and BEP-20, for Binance Chain and Binance Smart Chain. The two Binance tokens are compatible and complement each other. BEP-20 and BEP-2 tokens can be swapped equally. BEP-20, and the BSC network in general, act as the more decentralized network within the Binance ecosystem.

One important thing to remember is that ERC-20 and BEP-20 tokens are not exactly swapped anywhere. Users will need an appropriate asset bridge to ensure the correct exchange of tokens. Today, many wallets and exchanges – like Trust Wallet, MetaMask, and Binance Wallet – allow equal swaps directly on their platforms.

The First Standard Tokens, But Not the Last

ERC-20 remains the most popular token standard in DeFi. Almost every discussion in the cryptosphere and DeFi is about it. ERC-20 is the first token, and it is just the beginning of many other token standards. While Ethereum and Binance are still pushing for more deflationary mechanisms in their respective networks, we are likely to see more innovation of both networks in the future.

These token standards may be just the beginning. The capabilities of Ethereum, Binance, and blockchain, in general, far exceed the token capabilities seen in ERC-20 and BEP-20. Hopefully, we continue to see new standards roll out and see that new blockchain standards can follow in the footsteps of ERC-20's history and open up new uses. However, the usefulness of ERC-20 and BEP-20 cannot be ignored until that happens.

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