Which among BEP2, BEP20 and ERC20 is the superior token blockchain standard?

Tokens are programmable digital units on a blockchain network that serve many functions, such as those listed below.

• Carry out exchange
• Value storage
• Get your hands on virtual currency like in-game credits
• Rights to participate in the management of the corresponding website or mobile app

Hundreds of new DApp initiatives are launched every year, and many of them use blockchains like Ethereum and BSC to issue their own tokens. Tokens that do not follow the platform’s token specifications will not work with the underlying network.

Token standards set the guidelines for how new tokens should be created and used. Specifications for the following are often part of standards:

• Maximum number of tokens that will ever be produced
• Creation of new tokens
• Write a symbol
• Tokenized transactions and their associated workflow

The guidelines aim to reduce the likelihood of fraud, technical incompatibility between tokens and tokens not compatible with blockchain principles being issued. Token depreciation can be limited by enforcing constraints such as a maximum supply and a slow rate of creation of new tokens.

The most common token patterns

The three most common token patterns are Basic Energy Protocol 2 (BEP2), Ethereum Standard 20 (ERC20) and Ethereum Classic 20 (ERC). Read the bep20 vs. bep2 comparison to learn more about these tokens.

What exactly is BEP2?

Tokens on the BNB platform comply with the BEP2 standard. Tokens on this network have requirements outlined in the standard. Many well-known platforms, including Allbridge Core, enable BEP2 token transactions. You need BNB currencies to pay for gas, also known as transaction fees, when you make a deal with BEP2 tokens.

When using the decentralized exchange (DEX) structure, BEP2 makes it easy to trade between multiple cryptocurrencies. Smart contracts are essential to the operation of many currencies and decentralized applications (DApps), but BEP2 does not enable them.

Why do we need BEP20?

The Ethereum Virtual Machine (EVM) is a framework for building smart contracts, and the new blockchain was built to work with it.

For tokens, BSC uses BEP20, a flexible standard that is backward compatible with Ethereum’s BEP2 and ERC20 token standards.

An increasing number of DApps are now available to users thanks to the efforts of BEP20 and BSC. A few months after its launch, BSC surpassed Ethereum as the primary option for creating tokenized DApps.

Like BEP2 transactions, BEP20 transactions require gas payments in BNB currencies. Eight wallets, including Arkane Wallet and Math Wallet, have announced support for BEP20.

Through the use of a “bridge” it is possible to do business with both BEP2n and BEP20. With this cross-chain service, different blockchains such as Ethereum and TRON can communicate with each other (TRX).

ERC20: What is it?

Tokens on the Ethereum blockchain must conform to the ERC20 standard in order to be exchanged. The value of a fungible token is fixed and not specific to a single token. For simplicity, let’s use cryptocurrencies as an example of a fungible token. If we take Ether as an example, all Ethers are identical and have the same value.

Fungible tokens are different from NFTs, which have a non-default value assigned to each token. In addition to the ERC721 standard, Ethereum also includes another protocol for NFTs.

Many decentralized applications (DApps) on Ethereum use smart contracts built using ERC20. Ether is accepted as payment for gas.

ERC20 token transactions are supported by several wallets, including the likes of MyEtherWallet, MetaMask, and Trust Wallet, due to the standard’s widespread use.