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Crypto Terms:  Letter B
Jul 07, 2023 |
updated: Apr 02, 2024

What is BEP-20?

BEP-20 Meaning:
BEP-20 - a token standard for using tokens on the Binance Chain.
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Let's find out BEP-20 meaning, definition in crypto, what is BEP-20, and all other detailed facts.

BEP-20 is an administrative model developed for using tokens on the Binance Chain. In other words, it is a set of regulations dictating the token's overall usage, and how it can be traded. It was developed with the aim to allow developers to launch different tokens through an adaptable token version.

The most commonly used token standard is ERC-20. However, BEP-20 is compatible with ERC-20, since BEP-20 was formed based on the Ethereum token standard. Thus, the code of the operations defining the BEP-20 standard is a variation of the ERC-20 code.

BEP-20 provides the fundamental configuration - seeing the owner of the token, returning a balance, trading, etc. By creating this token variation, the focus was to upgrade the protocol and keep the fast performance, as well as the price of the transaction. The BEP-20 tokens can become dollars kept in a bank cellar or even shares within the business.

Besides, it's possible to attach tokens from other blockchains to BEP-20 in order to make them function on the Binance Smart Chain.