BEP20 and ERC20 are two of the most popular token standards in the cryptocurrency industry. Although they have similar functions, there are some key differences between them. The main difference between the two is in the technology used to create them. BEP20 tokens are built on the Binance Smart Chain, while ERC20 tokens are built on the Ethereum network.
Whether you’re a crypto enthusiast or just getting started, this guide has everything you need to understand the differences between BEP20 and ERC20 tokens. These tokens follow a set of rules that makes them compatible with any application running on the blockchains, known as token standards.
What Exactly Is a Token Standard?
A token standard is a set of rules and protocols that define how a particular type of token should be created, distributed, and used. It is an important part of the blockchain ecosystem, ensuring that all tokens are compatible and can be used in different applications. It ensures that all digital token transactions are secure, reliable, and compliant with the rules. It provides the foundation for developing decentralized applications (dApps) on the blockchain network.
Token standards provide a framework for token-based systems’ design, development, and deployment. Additionally, token standards help ensure users have access to a safe and secure platform for digital token transactions.
Furthermore, ERC-20 tokens’ gas fees for transactions can be quite expensive compared to BEP-20’s low transaction costs. We will explain the reason for the high gas fee in the comparison part of this article.
What Is BEP20?
BEP20 is a token standard designed for the Binance Smart Chain (BSC) blockchain. It is based on Ethereum’s ERC20 standard but has been adapted to work with the BSC network and its native coin, BNB. It is designed to enable developers to create and deploy tokens on the Binance Chain, with support for smart contracts, an advanced governance system, and high throughput.
BEP20 tokens are also compatible with decentralized exchanges (DEXs), so users can trade their tokens without trusting a centralized exchange. With BEP20, users can benefit from low transaction fees and fast transactions, making it a great option for those who want to make payments or trade digital assets quickly and easily. In addition, they can be used for various purposes, including fundraising, loyalty programs, games, and much more.
Top 10 BEP20 Tokens
- Tether USD (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
- Lido DAO (LDO)
- PancakeSwap (CAKE)
- Trust Wallet Token (TWT)
- PAX Gold (PAXG)
- Neutrino USD (USDN)
- Mask Network (MASK)
- Kyber Network (KNC)
What Is ERC20?
ERC20 is a technical standard that specifies certain rules and standards for issuing tokens on the Ethereum blockchain. It stands for Ethereum Request for Comment and was created to help developers create their own custom tokens on the Ethereum network. ERC20 tokens are digital assets created on the Ethereum blockchain.
The standard also ensures compatibility between different tokens so they can be used in various applications. ERC20 also provides a wide range of benefits, such as allowing developers to easily exchange and transfer tokens and providing users with assurance that their tokens are compliant with all applicable standards.
ERC20 tokens are widely used in Initial Coin Offerings (ICOs) and decentralized finance (DeFi) projects. In addition, the ERC20 standard makes it easier for developers to accurately predict how their tokens interact with one another and other Ethereum-based applications. This allows developers to use ERC20 tokens in their dApps, smart contracts, and other projects.
Create Your ERC20 Tokens Today
10 Major ERC20 Tokens
- Tether USD (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
- Shiba Inu (SHIB)
- Dai (DAI)
- Uniswap (UNI)
- Wrapped Bitcoin (WBTC)
- ChainLink (LINK)
- UNUS SED LEO (LEO)
- OKB (OKB)
Where to Store BEP20 and ERC20 Tokens Securely?
Guarda Wallet is the perfect solution for securely storing BEP20 and ERC20 tokens. It is a multi-currency, non-custodial wallet supporting over 60 blockchains and 400,000 assets. You can access the wallet via web browser, desktop, and mobile. With its built-in exchange and purchase options, users can easily buy, store, and exchange digital assets in a secure environment. In addition, it offers an in-app staking platform that allows users to earn interest while staking various assets, including ETH, ADA, QTUM, TRX, etc.
The hot wallet also offers advanced security features such as backup files and encryption to keep your funds safe. Whether you’re looking for HODL BEP20, ERC20, or other tokens, Guarda’s simple user interface allows you to manage your tokens easily.
Comparison of BEP20 and ERC20 Tokens
This part of the article will compare BEP20 and ERC20 tokens in terms of the blockchain network, transaction speed, token addresses, consensus algorithm, transaction security, gas fees, and scalability.
Blockchain Network
When it comes to blockchain, BEP20 tokens are built on the Binance Smart Chain, while ERC20 tokens are built on the Ethereum blockchain.
Transactions Speed
Regarding transaction speed, BEP20 transactions happen within 3 seconds, while ERC20 transactions take 15 seconds. BEP20 tokens can handle up to 1,400 transactions per second. In comparison, ERC20 tokens can handle up to 20 transactions per second.
Token Addresses
This is the only similarity between them on this list. BEP20 and ERC20 tokens utilize an Ethereum-style address format, which starts with ‘0x.’ Furthermore, both addresses are 42 characters long.
Consensus Algorithm
BEP20 tokens use the Proof of Staked Authority (PoSA) mechanism on the Binance Smart Chain Protocol. On the other hand, ERC20 tokens use the Ethereum consensus algorithm based on the Proof of Stake.
Gas Fees
BSC is better equipped for low transaction fees because transactions made with BEP20 tokens are paid for using BNB, which is relatively low. This is different for ERC20 tokens related-transactions since gas fees are paid for using ETH—the native coin of the Ethereum network. Ethereum is well-known for its high gas fees.
Scalability
BEP20 has lower block times and higher throughput capacity, unlike ERC20 tokens, due to its underlying blockchain infrastructure. This allows for a large number of transactions to be processed per second.
Transactions Security
This is where Ethereum has an advantage. Although BEP-20 tokens have advantages like faster transaction times and cheaper gas fees, ERC20 tokens have a more robust security model. For block verification, BSC uses merely 21 chosen validators, unlike the Ethereum network’s 400,000+ validators. Since there is a limited number of validators on BSC, it could lead to skepticism. The BSC’s PoSA block validation model has been heavily criticized for its security vulnerabilities.
How to Buy or Exchange BEP20 and ERC20 Tokens?
With Guarda Wallet, users can easily buy any BEP20 or ERC20 tokens with just a few clicks. In addition, Guarda’s built-in atomic swaps allow easy transactions without third-party interference or KYC. Then, follow these simple steps:
- Download the app on mobile or desktop or access it via a web browser.
- Create an account and set a strong password. Make sure to write it down.
- Download either of the tokens under the token standards and save the backup file. It is important for recovery in case you forget your password. We do not store your data on our servers.
- On the top of your wallet screen, choose any of the actions ‘BUY’ or ‘EXCHANGE’ and choose the token.
- Go through the payment verification process. If you are buying, you can use Visa/Mastercard or SEPA. If you are converting tokens, you must ensure you have enough of the BEP20 or ERC20 tokens you are swapping.
- Once the transaction is confirmed, the amount will appear in your wallet.
Conclusion
The main difference between BEP20 and ERC20 is their underlying blockchain protocol. ERC20 is based on Ethereum’s blockchain, while the BEP20 is based on Binance Chain. As a result, ERC-20 tokens are more widely accepted due to the blockchain and the fact the token standard has been around longer. However, BEP-20 tokens have faster transaction times and lower fees, which makes them better suited for more time-sensitive transactions.
So, which one should you choose? BEP20 or ERC20? The answer is really on your needs. If you want your tokens to be compatible with a wide range of wallets or exchanges with higher security, then go with ERC20. If you want lower transaction fees and faster transactions, go with BEP-20.
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FAQ
1. Is BEP20 the same as ERC20?
BEP20 is not the same as ERC20. Although BEP20 was developed as an extension of the ERC20 and includes ERC20 functionalities, BEP20 is the main token standard for the Binance Smart Chain. Accordingly, the BEP20 standard is the foundation for all tokens on the BSC.
2. What is the difference between BEP20 and ERC20?
There are various differences between BEP20 and ERC20, including gas fees, transaction speed, security, etc. However, the main difference is their underlying blockchains: Binace Smart Chain and Ethereum.
3. Can I send BEP20 to ERC20?
Yes, you can send ETH BEP20 to an ERC20 address. However, the process is complex. The most common method is cryptocurrency exchanges, allowing you to swap between the two types of tokens. Another alternative is the Binance Smart Chain Bridge, which connects two blockchains and allows users to transfer cryptocurrency from one to the other. If you want to transfer funds between the two networks, you will need to use a bridge or gateway service that allows you to exchange between the two types of tokens.
4. Is ERC20 safer than BEP20?
ERC20 tokens are considered more secure than BEP20 tokens because their transactions take longer to verify. As a result, the chances of successful fraudulent transactions are much lower with ERC20 tokens.
5. Where to store BEP20 and ERC20 tokens?
You can store both BEP20 and ERC20 tokens on crypto wallets like Guarda.
