What Is BEP-20?
Also known as: BEP20, BSC Token Standard, BNB Smart Chain Token Standard
In short
BEP-20 is the technical standard that tokens created on BNB Smart Chain (BSC) follow. Designed on the basis of Ethereum's ERC-20 standard, it defines basic functions such as transferring, checking balances and approving spending.
BEP stands for BNB Evolution Proposal (formerly Binance Evolution Proposal) and is the name given to technical proposals in the BNB Chain ecosystem. Because BNB Smart Chain is EVM-compatible, BEP-20 tokens are almost identical in structure to ERC-20 tokens; the same smart contract code can be used on both networks with minor changes. This compatibility allows Ethereum wallets to easily support BSC.
On BSC, transaction fees are paid in BNB; therefore, a user who wants to transfer BEP-20 tokens needs a small amount of BNB in their wallet. Many stablecoins and project tokens also have a BEP-20 version on BSC. The BEP-20 (BSC) network option seen when depositing or withdrawing on crypto exchanges refers to this standard.
One of the most common mistakes is sending a token over the wrong network. Because BSC and Ethereum addresses have the same format (starting with 0x), sending an asset that should be sent as ERC-20 over the BEP-20 network can cause the funds not to appear on the other side. Also, since anyone can easily create a BEP-20 token, a token following this standard does not mean it is trustworthy; fake tokens are common.
Last updated: · This content is for information purposes only and is not investment advice.