What Is BEP-20: Everything You Need to Know About It

Last updated: 07/21/2025 16:05

In the rapidly evolving world of blockchain technology, token standards play a critical role in defining how digital assets are created, transferred and managed. BEP-20 is one of the most widely used of these standards, particularly within the Binance Smart Chain (BSC) ecosystem.

Whether you’re a developer, investor, or crypto enthusiast, understanding BEP-20 is essential for navigating the Binance Smart Chain (BSC) and its growing ecosystem. This article breaks down the core aspects of BEP-20, its work principle, how it compares to ERC-20, and what makes it a preferred choice for many blockchain projects.

What is BEP-20?

BEP-20 is a token standard used on the BNB Smart Chain (BSC). It is similar to the Ethereum ERC-20 token standard. A token standard can be thought of as a blueprint for tokens, defining how they can be spent, who can spend them and the other rules governing their usage.

The standard was developed by Binance to extend the capabilities of its native Binance Chain (home to BEP-2) by supporting smart contracts and decentralized applications. BEP-20 is fully compatible with Ethereum’s Virtual Machine (EVM), allowing developers to port Ethereum-based projects to BSC with minimal modifications.

BEP-20 was conceived as a technical specification for BNB Smart Chain to provide developers with a flexible format for launching a variety of tokens. These could represent anything from shares in a business to dollars stored in a bank vault (i.e. a stablecoin).

In practice, BEP-20 serves as the basis for a variety of cryptocurrency assets, including stablecoins, governance tokens, synthetic assets and utility tokens. Its widespread adoption has helped Binance Smart Chain become one of the world’s most active blockchain networks.

[TRADE_PLUGIN]BTCUSDT,ETHUSDT[/TRADE_PLUGIN]

What are BEP-20 Tokens?

BEP-20 tokens represent a diverse range of crypto assets that don’t have their own blockchain but reside on top of the Binance Smart Chain (BSC). BEP-20 tokens were designed to be a better alternative to Ethereum token standards, so they share several similarities. Since BSC supports smart contracts and is compatible with Ethereum tools, creating and deploying BEP-20 tokens has become a preferred choice for startups and developers looking to build scalable blockchain solutions.

BEP-20 token transfers are fueled by BNB. This provides an incentive for validators to include the transactions in the blockchain, as they’ll collect the BNB as a fee for their troubles.

Popular BEP-20 tokens include BUSD (Binance USD), CAKE (PancakeSwap), and SAFEMOON. Each of these tokens uses the BEP-20 framework to define supply, enable transfers, and interact with smart contracts. These tokens power a wide range of use cases including governance voting, staking, yield farming, and payments.

＼Unlock Up To 10,055 USDT In Welcome Rewards!／

Sign Up BTCC Now

How does BEP-20 Work?

BEP-20 tokens operate on the Binance Smart Chain using smart contracts that enforce the standard’s guidelines. These guidelines include functionalities such as token transfers, balance tracking, and ownership permissions. Smart contracts enable developers to customize token behavior while maintaining a consistent interface across applications.

Transaction validation and execution are handled by BSC’s Proof-of-Staked Authority (PoSA) consensus mechanism, which ensures faster block confirmations and lower gas fees compared to Ethereum’s Proof-of-Stake model. As a result, BEP-20 tokens are well-suited for high-frequency trading and real-time dApp interactions.

Additionally, BEP-20 supports cross-chain compatibility through Binance Bridge, allowing users to convert ERC-20 tokens to BEP-20 equivalents and vice versa. This adds flexibility for investors and enhances liquidity across networks.

[TRADE_PLUGIN]BTCUSDT,ETHUSDT[/TRADE_PLUGIN]

How to Create a BEP-20 Token?

Creating a BEP-20 token on Binance Smart Chain involves several key steps:

Choose the Right Blockchain: Start by selecting Binance Smart Chain (BSC), the native platform for BEP-20 tokens.
Set Up Your Account: Register on a compatible BSC platform and complete the required Know Your Customer (KYC) verification process.
Define Token Parameters: Decide on your token’s essential attributes, including its name, symbol, total supply, and decimal precision.
Write the Smart Contract: Develop the token’s smart contract using Solidity. Tools like Remix IDE can simplify this process for beginners and experienced developers alike.
Deploy the Contract: Deploy your smart contract on the Binance Smart Chain. This can be done through platforms such as Remix or directly via a BSC wallet integrated with MetaMask.
Mint and Distribute Tokens: Once deployed, mint your tokens and begin distributing them to users, partners, or liquidity pools as needed.

By following these steps, you can successfully launch your own BEP-20 token and join the growing ecosystem on BSC.

＼Unlock Up To 10,055 USDT In Welcome Rewards!／

Sign Up BTCC Now

BEP-20 vs. ERC-20: What’s the Difference?

Although BEP-20 and ERC-20 are functionally similar, they operate on different blockchain infrastructures and have different advantages and disadvantages.

Blockchain platform

ERC-20 is based on Ethereum, while BEP-20 runs on the Binance Smart Chain (BSC). BSC is renowned for its lower transaction fees and faster confirmation times, making it a better fit for high-frequency applications.

Fees and speed

Ethereum transactions often encounter congestion and high gas fees, particularly during periods of high demand. In contrast, BEP-20 tokens benefit from BSC’s optimised performance, offering transaction times of under a second and minimal fees.

Scalability

Binance Smart Chain offers high speeds and low fees, making it a more scalable blockchain than Ethereum. In fact, BSC is best suited for fast-growing tokens and dApps that require cost-effectiveness and faster transactions. On the contrary, Ethereum transfer costs can be a problem for growing financial startups.

Ecosystem and compatibility

While ERC-20 has a longer track record and broader integration with decentralised applications, BEP-20 is gaining rapid traction due to its low-cost, high-speed infrastructure. Furthermore, BEP-20 is EVM-compatible, enabling the straightforward porting of many Ethereum dApps to BSC.

Security and decentralisation

Ethereum is more decentralised due to its large set of validators and higher degree of protocol maturity. In contrast, BSC trades some of that decentralisation for performance and scalability.

[TRADE_PLUGIN]BTCUSDT,ETHUSDT[/TRADE_PLUGIN]

Conclusion

BEP-20 is a technical standard that emerged to use for all smart contracts on the Binance Smart Chain for token implementations. It provides developers with an efficient framework to create tokens that are scalable, fast, and cost-effective. As demand for decentralized applications continues to rise, BEP-20 tokens will likely play a central role in the expansion of the blockchain industry.

Whether you’re a developer looking to create a token or an investor seeking to understand the infrastructure behind BSC assets, knowing how BEP-20 works is essential. As the ecosystem continues to evolve, BEP-20 will remain a key driver of innovation in the DeFi and Web3 space.

＼Unlock Up To 10,055 USDT In Welcome Rewards!／

Sign Up BTCC Now

About BTCC

Fully licensed and regulated in the U.S., Canada, and Europe, BTCC is a well-known cryptocurrency exchange, boasting an impeccable security track record since its establishment in 2011, with zero reported hacks or breaches. BTCC platform provides a diverse range of trading features, including demo trading, crypto copy trading, spot trading, as well as crypto futures trading with a leverage of up to 500x. If you want to engage in cryptocurrency trading, you can start by signing up for BTCC.

BTCC is among the best and safest platforms to trade cryptos in the world. The reasons why we introduce BTCC for you summarize as below:

Industry-leading security
High Liquidity & Volume
Extremely low fees
High and rich bonus
Excellent customer service
＼Unlock Up To 10,055 USDT In Welcome Rewards!／

Sign Up BTCC Now