BEP-20 is a token standard on the BNB Chain, created to expand upon ERC-20, one of the most prevalent Ethereum token standards. BEP-20 serves as a standard outlining the parameters for token expenditure, including who can spend it and its general usage regulations.
The BEP-20 standard is a derivative of the ERC-20 standard and maintains full compatibility. The functional code that characterizes the BEP-20 standard is essentially a modified version of the ERC-20 standard.
The alterations were implemented to enhance the protocol’s efficiency and reduce transaction costs. Indeed, BEP-20 was designed as a technical standard for the BNB Chain, with the objective of offering a versatile framework for developers to introduce various tokens. These tokens could symbolize anything from equity in a company to dollars held in a bank vault, like stablecoins.
It is possible to generate a native asset as a BEP-20 token and even peg tokens from different blockchains to render them functional on the BNB Chain.
Establishing a BNB Chain token is a straightforward process. These tokens adhere to the BEP-20 standard, which guarantees fundamental operations for the token, including transfer capabilities, balance retrieval, and token ownership visibility, among others.
