2025-06-25 15:58:49
BEP-20: What Are They and What Are Their Features?
Not all cryptocurrencies have their own blockchains, many are created on the basis of existing networks. Binance is one of the platforms that offers its ecosystem to developers. It includes the BNB Smart Chain (BSC) blockchain and the BEP-20 protocol. The Binance network has become a convenient and accessible foundation for creating new crypto projects, especially in the field of DeFi.
In this article, we will discuss BEP20: what it is, how this protocol works, how it differs from other formats, and why it is so popular in the crypto world.
Content
Brief Definition of the BEP-20 Standard
BEP20 is a standard that sets the basic rules for issuing, storing, and sending cryptocurrencies created on the BSC network.
How Does BEP-20 Work on the BNB Smart Chain Network?
BEP-20 has become an alternative to the ERC-20 protocol, which operates on the Ethereum network. Tokens created on BSC use smart contracts and can participate in transactions on decentralized exchanges or in compatible DeFi applications.
Additionally, BEP-20 includes options that make token management easier:
- Can Mint β allows new tokens to be issued as needed.
- Can Burn β allows coins to be burned to reduce issuance.
- Blacklist β blocks suspicious addresses.
- Can Pause β temporarily stops operations in case of threats.
Advantages of BEP-20 Tokens
Now that we have defined what BEP-20 is, let's discuss the advantages of this format:
- Low fees make tokens profitable for daily operations.
- High speed allows token transactions to be executed in fractions of a second.
- Wide compatibility β the Binance format is supported by many wallets, exchanges, and DeFi applications.
- Flexibility β create new cryptocurrencies without technical knowledge or high costs.
BEP-20 vs ERC-20 Comparison: What's the Difference?
Ethereum and Binance protocols share a common goal: token generation and management. However, there are important differences between them that are worth discussing in more detail:
Transaction speed and cost
BNB Smart Chain processes up to 160 transactions per second, demonstrating high throughput. Moreover, network fees are minimal β on average around $0.10, making transactions affordable even for small amounts.
ERC-20 is based on the Ethereum blockchain, where transactions are slower (about 15 per second) and fees can increase significantly during periods of high user activity.
Compatibility with wallets
Popular wallets and platforms support both ERC-20 and BEP-20. These include MetaMask, Ledger, Trust Wallet, Trezor, as well as online storage services of popular exchanges.
Where it is more commonly used: BSC vs. Ethereum
ERC-20 tokens are widely used on DEX exchanges, NFT marketplaces, and various decentralized apps.
BEP-20 focuses on accessibility: fast transfers, micropayments, and DeFi. It is also actively used in cross-chain operations via Binance Bridge (a tool that helps transfer crypto between different networks, for example, from Ethereum to BSC and back).
Comparing BEP-20 vs ERC-20, we can note that both standards provide beneficial opportunities for developers and users. However, there are tasks and conditions under which each can show itself at its best.
For example, for frequent transfers, it is better to use BEP-20, as they will be cheaper and faster. That is why many gaming crypto projects choose the BSC blockchain.
If maximum compatibility with global DeFi services (Uniswap or Aave) is important, it is preferable to choose ERC-20, as Ethereum remains the most mature and developed ecosystem.
Examples of Popular BEP-20 Tokens
The Binance protocol is actively used in the crypto sphere, and some cryptocurrencies created on its basis have long been at the top of the ratings:
- BNB β the network's internal token, used to pay transaction fees, participate in DeFi, and other activities on the BNB Chain.
- Tether β a top 10 stablecoin that is also available in BEP-20 format.
- CAKE β the native token of the decentralized exchange PancakeSwap, a key platform in the BSC segment.
- DOGE and LTC β modifications of well-known cryptocurrencies that can be used in the BNB Smart Chain.
- UNI β the Uniswap token, available in BEP-20 format for the convenience of BSC users.
BEP-20 is a universal protocol suitable for global development teams and startups planning to launch their own cryptocurrency.
FAQ
It is a list of rules that define how digital assets should work so that they can be easily used in BSC.
The most popular solutions are Trust Wallet, MetaMask, Trust Plus, and Binance Wallet.
If integration with DeFi is a priority, ERC-20 is more suitable, but if you are looking for cheap and fast transactions, choose BEP-20.
Looking for where to withdraw crypto in Rivne?
ObmenAT24 allows you to exchange Tether (USDT) and other popular cryptocurrencies to USD, EUR, and UAH. Our advantages are security, favorable exchange rates, and fast transactions.