The number of new projects and startups in the blockchain space is continuously increasing. The main reasons behind the rising popularity of blockchain among startups include high security, transparency, privacy and efficiency the technology offers. And thanks to the existing blockchain like Ethereum and BSC, creating your own tokens and smart contracts are now easier than ever.
ERC20 of Ethereum and BEP20 of the Binance Smart Chain are two of the most famous token standards today. Let’s figure out ERC20 vs BEP20.
What’s a token standard?
Every token created on a specific blockchain platform has to follow certain rules and guidelines defined as the token standard. These rules apply to all tokens created with that particular token standard. This helps ensure seamless interaction between smart contracts, tokens and platforms created on a particular blockchain.
ERC20 is the most popular token standard in terms of the popularity and number of tokens built on it. It’s an Ethereum token standard and integrates all the Ethereum blockchain features and functionalities. BEP20 is the next most popular token standard. It’s a BSC (Binance Smart Chain) token standard and is claimed to be more efficient than ERC20 in terms of efficiency, transaction speed and cost.
If you are confused as to which token standard is the best for your project, here’s a basic explanation of the two most popular token standards – ERC20 and BEP20 – along with differences.
What is the ERC20 Standard?
ERC20 is one of the best and latest Ethereum token standards for the creation of new tokens on the Ethereum blockchain. It basically specifies a set of rules that all tokens and smart contracts on the network must follow.
The tokens that are created using the ERC20 standard are called ERC20 tokens.
All ERC20 tokens automatically inherit the various smart features of the Ethereum blockchain, including the ability to run smart contracts. Other common benefits of the ERC20 standard include smooth and fast transactions, efficient transaction confirmation, low contract breaking risk, and improved connectivity.
What is the BEP20 Standard?
BEP20 is another popular crypto token standard. It is the native token standard of the Binance Smart Chain (BSC), which is an open-source blockchain with smart contract functionality. The tokens created on the BEP20 standard are called BEP20 tokens.
Since the Binance Smart Chain is an extension of the Ethereum blockchain, BEP20 tokens are designed with intrinsic compatibility with both ERC20 and BEP2 (Binance Chain token standard) tokens.
It is widely believed that BEP20 tokens are faster and more cost-efficient as compared to other blockchain tokens, including ERC20 tokens. For instance, BEP20 has an average block processing time of ~3 seconds, as opposed to the ERC20’s average block time of 10-19 seconds.
Other benefits of the BEP20 standard and tokens include compatibility with both BEP2 and ERC20 standards, easy swapping with BEP2 tokens, supported by a wide range of crypto wallets, and provides cross-chain compatibility with other blockchain tokens.
To sum up
Between ERC20 and BEP20, the Binance token standard is certainly a better and more efficient token standard for creating your new crypto token. This is the reason why Libra – a revolutionary cryptocurrency platform – was recently moved from ERC20 to BEP20 to provide more efficiency, security and a faster transaction speed. Know more at https://libraecosystem.com