In the previous article, we explored the concept of networks in the realm of cryptocurrency. Specifically highlighting networks such as BEP2 and BEP20, TRC20, ERC20, among others. In today’s article, we will delve deeper into the study of Bep token standards – tokens belonging to the Binance network – to gain a more comprehensive understanding of their functionality and significance within the ecosystem. This discourse is delivered with an informative style and in a formal tone to ensure clear and concise communication of the subject matter.
What is BEP token?
The BEP token, which stands for Binance Chain Tokenization Standard, is utilized as the standard for generating tokens that are used within Binance’s network. Being the second-largest blockchain platform after Ethereum, Binance possesses a vast number of Dapps and significant projects. Thanks to this token standard, projects can effortlessly release currency units within the extensive ecosystem of Binance, while enjoying the benefits conferred by this network.
There are multiple variations of the BEP token, with the three most prevalent standards being BEP8, BEP2, and BEP20 respectively.
BEP2 (Binance Chain Evolution Proposal 2)
BEP2 is a token standard utilized for creating and utilizing new tokens running on Binance Chain, a blockchain that operates independently and in parallel with Binance Smart Chain. The BEP2 token code is stored by Binance using Tendermint BFT and DpoS algorithms, which are evaluated as efficient and reliable replacements for POW.
As previously discussed in the article regarding Crypto’s network infrastructure, these standards represent a range of principles and technical specifications that tokens must adhere to in order to operate optimally on Binance Chain.
A few key parameters
Binance has provided a series of detailed principles regarding the standards for this token. In order to provide a comprehensive overview, the core principles utilized in the creation of BEP2 tokens are as follows:
- Source Address: the source address that the token holder issues.
- Token Name: represents the name of the token.
- Symbol: the identifier symbol of that token.
- Total Supply: the total supply of the Token.
- Mintable: ability of tokens to be minted in the future.
The BEP2 wallet address has the following form:
These standards will aid in determining the essential and fundamental features of tokens issued on Binance Chain. This simplifies the process of creating and issuing tokens, while also offering the advantages of Binance. Nevertheless, developers can still deploy tokens flexibly based on their purpose and specific circumstances, in addition to adhering to these fundamental principles. BEP-2 can represent various forms of digital assets and ensure their smooth integration into Binance’s ecosystem.
The utilization of the BEP2 token necessitates a definite fee which must be paid via Binance’s primary token, BNB. Furthermore, due to its possession of a cross-chain infrastructure. BEP2 can be effortlessly interchanged with BEP20 (Binance Smart Chain token), and is frequently employed on Binance’s DEX platforms.
BEP8 (Binance Chain Evolution Proposal 8)
The BEP8 token standard is utilized on the Binance Chain, and it is also referred to as a “special token” or “mini token” due to the significant upgrade it provides to the Binance Chain.
Specifying further, BEP8 employs a protocol with substantially reduced network resources compared to BEP2 by limiting the total number of token holders. Consequently, when a Developer lacks the necessary financial qualifications to issue BEP2, they may opt for BEP8. This token standard possesses excellent support capabilities for both small and medium-sized Dapps, owing to its low cost (approximately 3 BNB) and complete basic features.
Some features of BEP8
The potential of BEP8 can be utilized in numerous Blockchain technologies associated with various industries such as microfinance, copyright encryption, and community incentives. In addition, compared to BEP2, BEP8 has the advantage of being conveniently released at a reasonable cost. This standard has the potential to be listed with BNB or BUSD without the need for the Validators’ voting process. Furthermore, if it can ensure sufficient liquidity and maturity time, BEP8 can be upgraded to BEP2.
BEP8 wallet addresses also have the form “bnb” at the beginning like:
BEP20 (Binance Smart Chain Evolution Proposal 20)
As previously mentioned, Binance possesses a dual-chain structure consisting of Binance Chain and Binance Smart Chain. Specifically, BEP2 and BEP8 are utilized on Binance Chain while BEP20 is employed on BSC. This standard is applicable to all potential new tokens that can operate on BSC.
The BEP20 standard token expansion is derived from the widely used ERC20 token standard on the Ethereum platform. As a result, it possesses the unique capability to function compatibly on both the Binance Chain (via BEP2) and Ethereum (via ERC20).
A few key parameters
Some important data related to BEP20 tokens that you can capture include:
- Essentially, this parameter provides the ability for a token to be inflated and provides an estimate of the number of tokens that can be minted to increase the supply of BEP20 in the future. This parameter bears some resemblance to BEP2’s Mintable feature.
- In contrast to Can Mint, Can Burn showcases the capability of a token to decrease its circulation volume by burning or discarding tokens. This is done in an effort to minimize the amount of tokens currently in circulation within the market.
- A blacklist is a comprehensive list that permits the prohibition or obstruction of malicious addresses.
- Pause is a critical parameter, particularly in the context of attacks. Specifically, it designates whether an individual can suspend all token-related activities during an attack. Both authorized personnels such as developers or granted users have the capacity to freeze these operations.
The wallet address of the BEP20 network looks like this:
Similar to BEP2, BEP20 provides developers with the necessary rules to create tokens that represent any type of cryptocurrency asset, such as Stablecoin or peg token from other blockchains, for use on the BSC. This type of coin is also known as Peggy coin (BEP20 token associated with assets like BTC, LINK, XRP, etc.). Creating BEP20 tokens is considered relatively easy and straightforward, even if one lacks programming experience.
Naturally, availing the services on the Binance network would require one to pay transaction fees using BNB. Additionally, it is possible to conveniently exchange BEP20 and BEP2 tokens for usage across both Binance Chain and Binance Smart Chain platforms.
Several types of BEP20 token tokens
In order to provide a clearer understanding of the BEP20 token standard, we can list several prominent BEP20 tokens as examples.
As previously mentioned, it is possible for users to utilize BEP20 with even non-Blockchain tokens through Peg. BEP20 provides comprehensive support for various popular crypto assets at a 1:1 ratio, including but not limited to ETH, BTC, USDT, LTC, and ADA.
Individuals have the capability of purchasing Peggy coins and exchanging them in order to utilize their flexibility on the BSC platform, as well as converting Peggy coins into original Crypto assets.
PancakeSwap, considered one of the most popular Dapps on the BSC platform, has a market capitalization that has exceeded $5.17 billion. In addition, PancakeSwap is a partner of Ethereum’s UniSwap and SushiSwap.
More specifically, it is possible for individuals to exchange BEP20 tokens with PancakeSwap’s DEX platform. In addition to staking CAKE tokens, which serve as an administrative asset for the exchange. By doing so, one can generate a noteworthy passive income stream.
BakerySwap is a decentralized exchange platform on the Binance Smart Chain, similar to PancakeSwap. Notably, this platform possesses the ability to offer features concerning NFT or launchpad. The operational mechanism of BakerySwap is quite similar to PancakeSwap’s, through the use of AMM and liquidity pools.
At this location, it is possible for individuals to easily exchange their BEP20 tokens.
Note for BEP20 vs BEP2
Although there is the capability for interchange and interaction, it is not feasible to use these two token standards arbitrarily. In order to engage in trading on Binance Chain or Binance DEX, one must utilize BEP2. Conversely, to interact with Dapps on BSC, BEP20 is necessary. To put it concisely, utilizing the original tokens appropriately is imperative for achieving the intended objectives.
In order to carry out Peg-in and Peg-out transactions of BEP2/BEP20 assets, individuals may utilize Binance Bridge – a project which provides cross-chain liquidity on the Binance Chain and BSC.
Is it possible to use the same wallet for BEP2, BEP8 and BEP20?
If you utilize certain wallets like Trust Wallet or Metamask, you may observe multiple networks appearing simultaneously when conducting a fund transfer. These networks may include not only BEP2, BEP8, and BEP20, but also ERC20, TRC20, and others. The question remains: can these networks be used together within a single wallet?
The presence of multiple networks in a wallet when sending money does not necessarily mean they can share a single wallet address. As an example, the address for BEP2 and BEP8 begins with “bnb” while the address for the BEP20 network starts with “0x”. With different address structures for each network, BEP2, BEP8, and BEP20 cannot be used interchangeably to store the same type of coin/token.
What happens when transferring money to another network
Each network has its own structure and unique connectivity, so tokens can only be transferred within the respective blockchain. Therefore, it is crucial to ensure that you transfer coins to the correct network when conducting secure transactions and avoiding unnecessary complications. Nonetheless, you may wonder if all of these networks belong to the Binance system, whether they can still be traded even across different networks.
In reality, it is possible to successfully execute transactions even when transferring funds across different networks, provided that those networks are interoperable. However, Binance Chain and Binance Smart Chain are two independent chains that run in parallel. Therefore, if one were to transfer tokens across networks, the risk of losing those coins is significant. This is because if, for instance, one were to transfer BEP20 tokens to a BEP2 wallet, the coins would leave their original wallet but would not be received by the intended recipient’s wallet due to differing wallet addresses and protocols.
It is not possible to directly trade BEP2 tokens to a BEP20 network wallet and vice versa. It has been noted that using original tokens is imperative for corresponding purposes of both the BEP2 and BEP20 networks. Therefore, for seamless use of both network chains, it is necessary to carry out token conversion beforehand in order to use the correct token for the corresponding chain.
It is likely that with the aforementioned information, you have obtained a thorough and detailed understanding of the token networks within the Blockchain system, notably the BEP2 and BEP20 networks. Through this, it is hoped that you have gained insight into the characteristics, features, and advantages of each network during the process of selecting the most suitable token network. Wishing you success in your endeavors.
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