In this article, we will talk about everything concerning ERC20 and BEP20 tokens, their differences, including what a token standard is, and how to create them.
A token is a type of cryptocurrency that is made for a specific project and uses the same blockchain as another one.
Tokens are usually made and used by startups or organizations that want to raise money for new projects, but not always. They are usually made and used in the blockchain space, but not always.
People who make crypto tokens often use Ethereum, the Binance Smart Chain, and TRON, which is also called TRON. They use ERC20, BEP20, and TRC20 standards for their tokens.
What is a token standard?
A token standard has a set of rules by which all the tokens on that standard are run. A token standard tells you how to make, issue, and use new tokens on a certain blockchain.
There is an Ethereum standard called ERC20 token development that makes it easy for developers to create new tokens that work with the Ethereum blockchain.
It will be the same for all ERC20 tokens. They will all have the same properties and rules. People also use BEP20, TRC20, and TRC20 to make crypto tokens. ERC20 is one of them.
How many token standards are there?
Every blockchain can have its own standard for tokens, and sometimes there is more than one. However, in this article, we’ll talk about the two most popular tokens on the blockchain.
- ERC20 (Ethereum) token
- BEP20 (Binance Smart Chain) token
In the next section, we’ll go over each one in more detail, talk about the differences between them, and figure out which one is best for your project.
ERC2O TOKEN STANDARD: What it is and how it works
People use ERC20 all the time because it is the most popular and used token standard in the world today. There are a lot of ERC20 tokens on CoinMarketCap.com, which are built on the Ethereum network, so most of them are shown.
ERC20 is also one of the most well-known and oldest standards for making tokens.
People who want to give their opinion on a project called Ethereum should write ERC. There are rules for the tokens that are made and run on the Ethereum blockchain. These rules are called ERC-20 tokens.
People can buy and sell ERC-20 tokens on exchanges, and they can also trade them. Ethereum smart contracts are used to make them. The ERC-20 token standard includes a lot of information, like:
- The total number of tokens in circulation
- How the tokens will be transferred
- How the tokens can be withdrawn
- Token balance in the account
- How the tokens will be received
The process of making an ERC20 token is simple and cheap. Furthermore, transactions with ERC20 tokens are quick and efficient, with a quick confirmation of transactions.
As with the Ethereum network, the risk of a contract being broken is also very low. Because of the power of Ethereum, ERC20 transactions are fast, effective, and global.
Because ERC-20 tokens are widely used and accepted around the world, you can expect more liquidity and more money because of this. ERC20 token development is cheap and time-saving.
The tokens made with this method are easy to use, very safe, and come with their own wallets. If you want to raise money for a crypto startup project, this is the best way to do it.
Tokens made on the Ethereum network and based on the ERC20 standard could be used on the BSC network as well.
How to create an ER20 token
To create an ERC20 token, developers don’t have to think very hard because it is relatively simple for them to create.
However, if you don’t know how to build a blockchain or how to use programming languages, it’s best to get help from a professional.
Building ERC20 tokens requires technical skills and knowledge of programming languages.
But since this is the 21st century, pretty much everything you want to do these days can be found online.
Since it is possible to develop stunning websites and mobile apps without coding knowledge, it is also possible to make your own ERC20 token even if you aren’t a tech expert.
There are free tools on the internet that can help you make your own unique token in less than five minutes.
This guide will show you how to create your own ERC20 token step by step.
BEP20 TOKEN STANDARD: What it is and how it works
In terms of making crypto tokens, BEP20 is the second most popular standard. Many of the new tokens are being made on the Binance Smart Chain because it is faster, more efficient, and can work with other chains.
BEP20 was made as an extension of the ERC20, so it has all of the ERC20’s features.BEP20 is the main standard for tokens on the Binance Smart Chain.
This means that all tokens on the Binance Smart Chain are automatically based on the BEP20 standard.
BEP20 lays out the rules for how a BEP-20 token can be used, transferred, approved, and managed.
Note: BEP20 is not the same as BEP2. These are two different types of tokens that Binance has. BEP20 is a token standard for the Binance Smart Chain (BSC), but BEP2 is linked to the Binance Chain, which is why it is called BEP2.
Binance Chain doesn’t have smart contract support, but BSC does, and so do the BEP2 tokens.
The Binance Smart Chain is used to run smart contracts and DApps. All of the BEP20 tokens are based on the Binance Smart Chain. The BSC lets developers make smart contract-powered decentralized apps.
There are many people who don’t know that BSC is compatible with Ethereum and that it can be used to process transactions faster and for less money.
To do this, you can use the Binance Smart Chain (BEP token) to move ERC20 tokens at a much faster speed and for a very low price.
ERC20 isn’t the only token that can be moved with BEP20. Bitcoin, Ethereum, Litecoin, and USDT can also be moved with this method.
There are also a lot of benefits to the BEP20 token system, such as compatibility with the BEP2 ERC20 tokens, the Binance Exchange, built-in functions features, easy swapping with the BEP2 tokens, and cross-chain compatibility with other blockchain tokens.
BEP20 token development process
The process of creating a BEP20 token is a lot easier than it used to be. Even if you don’t have any technical or blockchain knowledge, you can still make a simple BEP20 token using free online tools.
However, if you want to make a custom feature-rich BEP20 token from scratch, you’ll need the help of a professional BEP20 token developer.
BEP20 vs ERC20 tokens
The main difference between the two most popular token standards is how the network is set up.
As for ERC20 tokens, they are built on the Ethereum blockchain. BEP20 tokens are built on the BSC network, on the other hand (Binance Smart Chain)
All of the networks use the same language called “solidity.” This means that they are mostly cross-compatible and can be used together, with tokens made on one platform being able to be used on another.
Also, the process of making and deploying tokens is almost the same on all three networks, except for the fees and how easy it is to use, which are different.
A network called BSC is the best one for making tokens and charging the least.
ERC20 is compatible with the BSC network. You can send or withdraw an ERC20 token on the BEP20 network.
Binance Smart Chain uses a unique Proof of Staked Authority (or PoSA) consensus algorithm that isn’t used by the Ethereum network.
This means that the Binance Smart Chain is said to process blocks in just three seconds, compared to Ethereum’s 15-second block time.
Because the Binance network is about 5 times more efficient than the Ethereum network, it is crystal clear that the BEP20 is better than the ERC20 token.
In fact, the main reason why other blockchains were introduced in the first place was because the Ethereum network was too slow.
It took a long time for Ethereum’s slow consensus model to work well as traffic and demand grew. This led to the development of the Binance Smart Chain, which is faster and cheaper than Ethereum’s (in 2019).
Because the Binance Exchange is becoming more and more popular around the world, the popularity of BEP20 is on the rise, too.
All BEP20 tokens are automatically added to the Binance Exchange and can be used with many different types of tokens, like Bitcoin, ETH, Litecoin, and more.
Consider creating your cryptocurrency with the ERC20 standard if ease of development and the ability to reach people all over the world is at the top of your priorities.
However, if you want to get the best and most innovative token with low transaction fees and a shorter processing time, you should use the BEP20 format.
It’s hard for developers to think about making complex apps with advanced features because the transaction fees on Ethereum are already very high, and they keep going up as the load on the network grows.
That doesn’t mean that the Binance Smart Chain, which is the most popular blockchain network for making tokens, isn’t a winner.
Why? Because BSC is very efficient, cheap, and fast. In contrast to Ethereum, Binance has found a way to keep the transaction fee low even as the number of users grows.
People don’t believe that the fee on Ethereum’s system every day is almost 200 times more than the BSC network every day, but that’s what they say!
Things to consider before creating your own token
Are you looking to make a new token for a project that could generate a lot of money from crypto? Consider the following things when making tokens for the best results.
- Token Compatibility: The token must be made to meet the standard for that type of token.
- Token Supply: At the time of making a token, the maximum amount for supply must be set.
- Token Issuance: How the new tokens will be created or issued, through mining or staking, or both.
- Token Burning: Whether the tokens will be burned to cut the supply and increase demand. If so, how often and how many times.
- Token Rights: A token owner or holder has certain rights, such as the right to sell the token. They may be able to run the company, vote, or not be able to do anything at all.
- Token Listing: After the token is created, it needs to be put on exchanges where people can buy and sell it.
