Technology has grown at a breakneck pace as many business verticals are emerging. Among them, blockchain technology is becoming increasingly popular.
But what makes it popular? The inherent immutability, security, global access, and high transparency of the technology are the features that make it popular. Ethereum and Binance Mainnets are the most used blockchains in the crypto space. Emerging crypto projects use these blockchains to get started. They use the Ethereum and Binance token standards to improve the image of their brands.
In this article, we will discuss Ethereum’s ERC20 token standard, Binance’s BEP20 token standard, ERC20 token development, and How to create BEP20 token? and the significant differences of BEP20 vs ERC20.
Without any delay, let us start this blog.
An Overview of Ethereum and BNB Chain
Blockchains are decentralized ledgers that establish a peer-to-peer network. Ethereum is the second most popular blockchain in the world and got its popularity because of its native coin, Ether. It enables and executes all transactions using smart contracts. Ethereum is a programmable, efficient, transparent, and secured blockchain.
Ethereum is the most preferred blockchain by developers for creating decentralized applications(Dapps). All the Dapps are developed with the help of a smart contract. All the data that enters the Ethereum blockchain will be validated and added to individual blocks in the blockchain. Ethereum uses a proof-of-work mechanism to validate each block. Ethereum has many token standards for crypto token development. Among them, ERC20 token development is more popular. This is the working of the Ethereum blockchain.
BNB Chain is a blockchain that runs parallel with the formerly created blockchain, the Binance chain. BNB Chain was launched half a year after the Binance chain. It is developed by adding some functionality like smart contract accessibility; that was unavailable in the Binance chain. Developing a crypto token with a smart contract will be highly secured. Smart contracts are digital contracts programmed to self-execute when under defined conditions.
BNB Chain is also a popular blockchain used for developing decentralized applications. For validating all transactions, the BNB Chain follows the Proof-of-Staked Authority (PoSA) algorithm. BNB Chain is a standalone blockchain that supports staking, and compatible with Ethereum Mainnet, and has native cross-chain communication. Binance smart chain also has multiple token standards for crypto token creation. Among them, BEP20 token development is more popular among startups and cryptopreneurs.
As discussed earlier, let us see the token standards.
What is an ERC20 Token Standard?
ERC20 token standard is a well-known token standard of the Ethereum blockchain. ERC stands for ‘Ethereum request for comment’ and 20 is its proposal identifier. ERC20 is a technical token standard developed to create and issue fungible tokens on the Ethereum blockchain. This token standard holds a common set of functions that serve as a guideline for token generation. All those details should be incorporated in a smart contract and the tokens can be developed.
The parameters that have to be involved in the ERC20 token standard for ERC20 token development are as follows.
- Total supply
- Balance of
- Transfer from
- Symbol of the crypto token
- Token name
- Decimal value
While discussing its properties, ERC20 is a token standard used for fungible token creation. Fungible tokens are the crypto-based representation of tradable assets like fiat money, coins, loyalty points, etc. All fungible tokens hold the same value so a token can be swapped with another crypto token of the same value. Most of the newly emerging startups prefer ERC20 for their crypto token development considering their benefits.
The Main Benefits of the ERC20 Token Development
We shall discuss the benefits of ERC20 token development in the ERC20 token standard.
- Transactions can be made in a high-speed and effective manner.
- It is easy to create and deploy ERC20 tokens
- ERC20 tokens offer access to token creators across the globe.
- High token liquidity
- The risk of breaking the ERC20 smart contract is low.
- Provides higher-end security.
- ERC20 tokens can be used for various purposes like crypto crowdfunding(ICO), trading, staking, making purchases, etc.
BEP20 Token Standard
BEP20 is a token standard of the BNB Chain that extends ERC20 and was developed by combining the properties of ERC20 and BEP2. It is an enhanced token standard that is used to create BEP20 tokens. There is a unique feature of the BEP20 token standard. One can access the BEP20 holds the same set of rules and regulations as ERC20 for token creation. Both tokens BEP2 and BEP20 are complementary and compatible with each other. BEP20 also offers various benefits for token developers.
Benefits of the BEP20 Token Development
here are certain benefits to create BEP20 token.
- The gas fee is very low when compared to other tokens.
- Offers compatibility with BEP2 and ERC20 tokens.
- BEP20 tokens are supported in many wallets.
- High-speed transactions can be made.
Differences Between ERC20 vs BEP20
Now, we shall discuss the significant differences between BEP20 vs ERC20 tokens.
While considering the above differences, both BEP20 vs ERC20 have their unique features and advantages. So, we cannot decide on choosing the precedence of these tokens. Both ERC20 token development and BEP20 token development are useful in some qualities. So, choose the type of crypto token standard based on your business requirements. It is in your hands for choosing the optimal token standard for your business. If you are in doubt, seek an expert’s opinion.
Now, you might have a clearer idea about ERC20 vs BEP20 token standards. Numerous Crypto Token Development service providers are prevailing in the crypto ecosystem. Not all such providers are veterans in the crypto token development field. So, analyze the company’s profile and choose the service provider carefully.
Icoclone has a team of well-skilled and experienced developers who are experts in developing crypto tokens. We are available 24/7 to our clients across the globe. If you wish to create BEP20 tokens or ERC20 tokens for your crypto business, approach Icoclone immediately and start your business today.