BEP2 and BEP20 are two different token standards used in the Binance Chain and Binance Smart Chain networks. The main difference is that BEP2 is a protocol used for native transactions on the Binance Chain. At the same time, BEP20 is a protocol used for smart contract transactions on the Binance Smart Chain. As a result, BEP2 is more suited for simple transfers of tokens and assets, while BEP20 supports more complex features such as token staking, decentralized exchanges, and NFTs. Both protocols offer high levels of security and scalability, but each has advantages and disadvantages.
Ultimately, both BEP2 and BEP20 tokens offer reliable and secure solutions to transfer digital assets. Still, depending on your needs, one may be more suitable than the other.
What Is BEP2?
BEP2 is the token standard used by the Binance Chain platform. The standard provides specifications for issuing tokens on this blockchain. Many popular wallets, such as Ledger, support transactions with BEP2 tokens. If you want to make transactions with BEP2 tokens, you will need to use BNB coins to pay for gas, i.e., transaction fees.
One of the advantages of BEP2 is the convenience of trading between different cryptocurrencies in a decentralized exchange format. However, BEP2 does not support smart contracts, which many tokens and dApps rely on for their functionality.
Binance Chain
It was launched in April 2020 and developed by Binance to use its decentralized exchange to trade anonymously and with lower commissions.
The goal of Binance Chain was to compete with the rest of the exchanges in the world, to create a network where they could lower transaction costs and offer lower trading fees to absorb the market.
What Is BEP20?
BEP20 is an extension of ERC20, the most popular token standard in the Ethereum blockchain. Similarly, BEP20 is the standard token in the Binance Smart Chain platform. This token defines who can use it, spend it, how, and other related details. BEP20 is compatible with BEP2 and ERC20 because they have much in common.
This token was created for the Binance Smart Chain as a technical specification. The main motto of the launch of this token was to make it easier for developers to develop similar tokens. These tokens can represent a company’s stock, the amount held in a bank account, or something similar. Binance Coin (BNB) makes it easy to transfer these tokens.
Binance Smart Chain
Binance Smart Chain (BSC) is a blockchain that runs parallel with the Binance Chain. The world’s largest cryptocurrency exchange operates Binance Smart Chain. It combines two important advantages:
- It solves the problem of expensive transactions;
- It allows users to use Ethereum applications.
Thus, developers can use Ethereum code when working with Binance Smart Chain. BSC works in parallel with the native Binance Chain (BC) network. Since developers can create dApps (decentralized applications), users can manage their digital assets across the chain.
Why Is Binance Smart Chain Better Than Any Other Alternatives?
Binance Smart Chain could convince so many users in such a short time because its benefits are enormous.
- Independence: Binance Smart Chain is an independent blockchain that operates separately from Binance Chain.
- High speed: BSC is characterized by high-speed processes and takes advantage of the Binance Chain.
- Low Transaction Costs: Especially compared to Ethereum, BSC is much cheaper. This makes Binance Smart Chain a useful option for developers and users.
- Compatibility: Binance Smart Chain is compatible with the Ethereum virtual machine, and the corresponding smart contracts are also compatible with BSC. This also makes it easier for programmers to transition.
Where to Store BEP2 or BEP20 Tokens Securely?
You can do these transactions using Guarda Wallet. It is accessible through a web browser/desktop, and when you are on the go, you can access the wallet on your mobile device. Guarda also gives you a rich selection of Cryptocurrencies to choose from.
The service is an easy-to-use, navigable solution for beginners and experienced crypto investors. Creating your cryptocurrency wallet on Guarda takes a couple of minutes.
Create a Wallet to Store Your BEP2 or BEP20 Tokens
BEP20 vs. ERC20: Platform Security
BEP20 tokens typically have lower gas fees and execute much faster. However, the Binance Smart Chain (BSC) proof-of-staked-authority (PoSA) verification model has been criticized for potential security flaws. The main complaint concerns the network’s low level of decentralization in approving transactions.
BSC has only 21 validators selected to validate blocks. In comparison, the Ethereum network has over 70,000 validators. The small number of validators in BSC can cause trust issues among potential users.
In essence, it can be argued that BEP20 tokens offer superior gas speed and execution time at the expense of security and decentralization. For those who put safety first, ERC20 tokens would be a favorite because they would give them more peace of mind.
How to Buy, Sell or Exchange BNB Beacon Chain and BNB Smart Chain tokens?
You can do these transactions using Guarda Wallet. It is accessible through a web browser/desktop, and when you are on the go, you can access the wallet on your mobile device. Guarda also gives you a rich selection of cryptocurrencies to choose from.
Conclusion
The main thing is that BEP2 and BEP20, and ERC20 are the token standards used by their respective blockchains. So when your wallet transfers tokens using these standards, the transaction will be executed using the BNB platform for BEP2, BSC for BEP20, or Ethereum for the ERC20 platform.
BEP2, while a decent option for Binance DEX-based cryptocurrency trading, does not support smart contracts. BEP20 and ERC20 offer access to a wide range of dApps and tokens based on smart contract technology.
From a technical perspective, the BEP20 standard has more detailed token specification parameters than ERC20, mainly because BEP20 was developed and extends ERC20.
FAQ
1. What is the difference between BEP2 and BEP20?
BEP2 tokens are native to the BNB Beacon Chain, while BEP20 tokens are native to the BNB Smart Chain.
2. Is BEP2 the same as BEP20?
No, both standards operate on different blockchain networks.
3. How do I know if my BNB is BEP2 or BEP20?
The wallet address for BEP2 tokens always starts with ‘bnb’ in the front and it usually have ‘BNB and Binance Coin’ in front of the token. Meanwhile, BEP20 tokens have wallet addresses similar to Ethereum network wallet addresses starting with ‘0x’ and they have ‘BSC and Binance Smart Chain’ in front.
4. Is BEP2 better than BEP20?
We can’t say one option is better or worse because they are designed for different purposes. However, the BEP-20 has several advantages in terms of digital asset development.
5. Can I send BEP2 to BEP20?
Though you can’t send BEP2 to BEP20 directly, since they exist on separate chains, you can swap between them using the exchange feature on Guarda Wallet.
6. Where to store BEP2 and BEP20 tokens?
Guarda Wallet is the best solution for storing your BEP2 and BEP20 digital assets, as well as other token types.
