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BEP-20 is a Binance Smart Chain token standard that lets you transfer your tokens between different blockchain networks. It was designed with the purpose of offering a flexible structure for developers to create a variety of tokens. In this article, we’ll discuss the key concepts of Binance Smart Chain and token development on it.
The Binance Smart Chain(BSC) is a blockchain system developed by the crypto-trading platform Binance. Since its launch in 2020, it has established itself as one of the leading blockchains for DeFi and dApp development. Some of its key features include smart contract functionality and compatibility with Ethereum Virtual Machine (EVM).
Binance Smart Chain is completely independent of the Binance network. This means that even if the Binance network is down, Binance Smart Chain can still run normally. It is built on a dual-chain architecture. It allows users to develop their decentralized apps and digital assets on a single blockchain.
BSC is governed by a Proof-of-Stake (PoS) consensus algorithm that enables users to stake BNB tokens so that they can become validators. They can also transfer their assets from one blockchain network to another in a quick and hassle-free manner. This interoperable nature allows for myriad applications in the decentralized finance area. Some excellent characteristics of Binance Smart Chain are :
Stand-alone block chain
Binance Smart Chain is an independent blockchain that runs in parallel with BC. This implies that BSC will continue to carry out its technical and business functions even if BC servers are down.
Compatibility with Ethereum Network
This feature enables the developer to make d-Apps, tools and other ecosystem components in BSC and transfer them easily to ethereum blockchain without hassles.
Extended staking and community based governance
Unlike other networks which use Proof-Of-Work systems, BSC uses Proof-of-stake model which involves enables binancechain to formulate transactions quickly and better than the systems that run on P-o-w models
Interoperability
BC and BSC are two independent blockchains working parallel to each other. So this facilitates the easy movement of their cryptocurrencies between these two blockchain systems.
Related Article: How to launch a DeFi project.
Binance Smart Chain has several advantages over other blockchains when it comes to digital asset development. Some of the top benefits can be seen as follows:
The introduction of BEP-20 has engendered a healthy amount of competition with ERC-20. The Binance Smart Chain enables users to develop tokens in a simple and user-friendly manner. Each token conforms to a standard known as BEP-20. This standard is essentially an extension of the Ethereum token standard ERC-20. It defines how a token based on BEP-20 can be spent and used. It also has information on who can spend these tokens. BEP-20 gives developers a flexible token standard to develop a wide range of tokens. For instance, developers can use BEP-20 tokens to represent an array of digital assets such as stablecoins, governance tokens, business shares, etc.
A token standard like BEP-20 can guarantee basic functionalities for the token, like transferring, returning a balance, viewing token ownership, etc. Users can swap BSC tokens with the normal Binance Chain tokens that conform to their standard, BEP-2. All transactions that take place with these tokens on the Binance chain will require a fee paid in BNB. This fee works as compensation for validators who secure the network. Additionally, the BEP-20 token can be used to create a native asset or a pegged token. BEP-20 tokens are also available for assets like Bitcoin, Ethereum, USDT, LINK, BAND, ADA, DAI, LTC, EOS, and more.
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BEP-20 refers to a token standard on the Binance Smart Chain and acts as an extension of the ERC-20 token standard. Surprisingly, BEP-20 is not the only token standard developed by Binance albeit the most popular. BEP-20 tokens are similar to the BEP-2 tokens in various aspects. Both BEP-2 tokens and BEP-20 tokens function through the use of Binance Coin (BNB). This stems from the fact that BEP-2 and BEP-20 are designed with dual chain architecture, where the Binance Chain and Binance Smart Chain support each other. The tokens also work similarly and their transfer is subject to a fee in terms of BNB which acts as the incentive model of the consensus algorithm. Therefore, any transfer of the BEP20 token will have a transfer fee in BNB which will be given to the validators.
The main difference between the BEP-2 and BEP-20 is that they work on different blockchains. The BEP-2 token standard is meant for the Binance Chain, while the BEP-20 token standard works with the Binance Smart Chain. The BEP-20 token is compatible with both ERC-20 and BEP-2 (Binance Chain Token) since they are similar.
During the creation of a Multicoin account, the BEP-2 address would be the BNB address on your trust wallet, while the BEP-20 address would be the coin called “SmartChain”. The BEP-2 address starts with “bnb”. On the other hand, BEP-20 addresses start with 0x just like an Ethereum address.
Here are the advantages and benefits of the BEP-20 token that make it a more worthy asset for businesses.
To create a BEP-20 token, you must first create a smart contract. Most smart contracts are written in an object-oriented, high-level language called Solidity. This language is statically typed, supports inheritance, libraries, and complex user-defined types among other features. Solidity also has several libraries and tools that provide implementations of standards like ERC-20 and ERC-721. There are also a plethora of components that can be used to build custom contracts.
The major steps that you will need to follow for BEP-20 token creation are given as follows:
Step 1: Create a new file called TokenName.sol. After your file has been created on Solidity, you will need to write a code for your smart contract. You can make use of the code given below as a guide to this step. After you have added the code, set the compiler version of Solidity to the token.sol file version.
Guide for smart contract code:
// Current Version of solidity
pragma solidity ^0.8.4;
// Main coin information
contract Token {
// Initialize addresses mapping
mapping(address => uint) public balances;
// Total supply (in this case 1000 tokens)
uint public totalSupply = 1000 * 10 ** 18;
// Tokens Name
string public name = “My Token”;
// Tokens Symbol
string public symbol = “MTK”;
// Total Decimals (max 18)
uint public decimals = 18;
// Transfers
event Transfer(address indexed from, address indexed to, uint value);
// Event executed only ones upon deploying the contract
constructor() {
// Give all created tokens to address that deployed the contract
balances[msg.sender] = totalSupply;
}
// Check balances
function balanceOf(address owner) public view returns(uint) {
return balances[owner];
}
// Transfering coins function
function transfer(address to, uint value) public returns(bool) {
require(balanceOf(msg.sender) >= value, ‘Insufficient balance’);
balances[to] += value;
balances[msg.sender] -= value;
emit Transfer(msg.sender, to, value);
return true;
}
}
Step 2: In the second step, you will need to acquire a wallet for the storage of your tokens. You can easily buy, store and send tokens through MetaMask, one of the most popular digital asset management platforms in the market today. This is a relatively easy step. All you have to do is install and set up MetaMask. You will be given prompts during the entire process. After installation, click on “Create a wallet”. Note down the backup seed phrase and keep it carefully. If you lose this password, you will not be able to access your wallet again.
Step 3: For this step, you will have to connect MetaMask to the Binance Smart Chain. To do this, you will first need to configure your wallet. Go to ‘Settings’, which you will find in the drop-down menu on the top-right of the MetaMask webpage. Once you are on the Settings page, locate the Networks menu. Click on ‘Add Network’ in the top-right corner to manually add the Binance Smart Chain.
Two networks can be used here: the Testnet or the Mainnet. For this tutorial, we will use Testnet. You can fill in the parameters given below:
Testnet
Network Name: Smart Chain – Testnet New RPC URL: https://data-seed-prebsc-1-s1.binance.org:8545/ ChainID: 97 Symbol: BNB
Block Explorer URL: https://testnet.bscscan.com
After you save the network, you will see that the network has automatically been set to Testnet and the units will be denominated in BNB instead of ETH.
Step 4: Head on to Binance Smart Chain Faucet and paste your BSC address into the form.
Click on the Give me BNB dropdown and select the amount you wish to receive. Your funds will then appear in your Testnet wallet.
You are now ready to deploy your first contract and start making transactions.
Proof-of-Staked-Authority (PoSA) is a hybrid of the Proof-of-Staking and Proof-of-Authority consensus protocol. Binance Smart Chain (BSC) uses this Proof-of-Staked-Authority consensus algorithm for its transactions. The PoSA consensus model has a shorter block time and lower costs than the PoW consensus model.
Participants can stake a particular number of BNB tokens. So these participants do no mint new tokens but they receive BNB rewards that already exist in the BSC network, while they validate transaction details and add new blocks.
The allowable number of active validators is 21. Only these eligible validators are qualified for validation. There is a ranking system based on the number of BNBs owned by the validators and the top 21 become the active validators. So these people are given turns for validating the transaction and this process is repeated once a day.
PoSA consensus model permits quicker block times and reduced costs by sacrificing network decentralization and security. This PoSA consensus model limits a user from directly validating transactions of the Binance Smart Chain themselves in the same way they can with Bitcoin or Ethereum.
Given the spectacular growth of Binance Smart Chain development in recent months, it appears that more BEP20 tokens will be making their way into the crypto sphere. Binance Smart Chain efficiently fills the gap between various blockchain and dramatically extends the functionality of the original Binance Chain.
If you want to develop and deploy BEP-20 tokens on Binance Smart Chain, we can guide you through the process. Our Blockchain experts are experienced and efficient in their approach. Get in touch with the top Blockchain experts to create and deploy your own BEP-20 tokens.
