While Ethereum was the first attempt to create an internet computer running smart contracts with ERC20 as its native token. But what is the meaning of BEP20 and is BEP20 same as BNB. Let’s find out by reading the article below.
What is the meaning of BEP20?
The web3 space is booming due to the attention drawn by new technology innovations such as NFTs and DeFi. However, it has become more powerful recently with the introduction of new blockchain networks such as Binance Smart Chain or BSC. Binance Smart Chain introduces the unique BEP20 token standard, which has gained unparalleled acceptance in the web3 developer community.
BEP20 basically refers to the token standard used to create tokens on BSC, just like ERC20 is used to create tokens on Ethereum. It is an important tool to facilitate the development of smart contracts on Binance Smart Chain. We will discuss "What is BEP20" in detail later. Now, you must note that BEP stands for "Binance Smart Chain Evolution Proposal".
The abbreviation "BEP" is short for "Binance Smart Chain Evolution Proposal". BEP20 is a token standard created by Binance for Binance Smart Chain, a smart contract platform that runs in parallel to the original Binance Chain.
Is BEP20 same as BNB?
BEP20 is the token standard for Binance Smart Chain. In many ways, it is similar to Ethereum's ERC20 standard; in others, it extends it. BEP20 sets the rules that all tokens created on BSC need to abide by.
The BEP20 token standard on the BSC applies to any token issued or created on the Binance Smart Chain platform. Examples of such tokens are utility tokens, stablecoins and security tokens. Another class of coins, called “Peggy Coins,” are also built using the BEP20 standard and can be pegged to different assets.
Just as Ethereum has gas fees, BNB pays for transactions involving BEP20 tokens on the Binance Smart Chain network.
I hope this article will help you to learn what is the meaning of BEP20 and is BEP20 same as BNB. The BEP20 token showcases detailed insights into how the new token standard supports web3 developers. The BEP20 standard was developed along the lines of ERC20, with some unique improvements in terms of functionality and new parameters.
