What You Need To Know About BEP-20 (Binance Smart Chain Tokenization)

BEP-20 is the Binance smart chain. It is distinct from the Binance Chain in that it is designed as a double chain that makes provision for developers to accomplish much more, such as the building and deployment of decentralized applications (dApps). If you’re aware of the features and functionalities of the Binance Chain BEP-2, you would understand its similarities with the Binance smart chain BEP-20 and the Ethereum smart contract platform ERC-20.

Flexibility for Developers

The concept of the BEP-20 is to create more flexibility for developers to build and express their concepts through the platform. It is essentially a token standard that enables developers to deploy a wide range of tokens and smart contracts that serve several purposes.

Cross-Chain Functions

Apart from creating the platform for developers to launch native tokens, the Binance BEP-20 has cross chain features that enables owners of traditional tokens to peg tokens built on other blockchains on the Binance chain and make them usable or replicate versions of the token on the Binance chain.

Complementary To Binance Chain

The native token of that fuels the tokens on the chain is BNB. It basically rewards the validators for facilitating transactions on the network. The smart chain of Binance was built to complement the Binance chain which is the principal platform that facilitates trading of assets as exemplified with its ultra fast exchange features. In essence the smart chain that focuses on creating a platform for the development of dApps operates independently even if complementary to ensure that the original chain is not congested.  

Tokens on BEP-2 and those on BEP-20 are interchangeable due to the similarity in the architecture of the chains and the fact that they were designed with interlinking properties that makes cross-chain interactions tenable. This can easily be done through the Binance chain wallet extension.

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.