In general, each token is a type of digital currency created with a specific blockchain. Many blockchains worldwide now support specific tokens with certain standards, such as ERC20 tokens based exactly on Ethereum blockchain and BEP2 tokens based on Binance Chain blockchain standards. Similarly, there are differences between the two measures. In this article, we intend to examine the type of user access, transaction approval, and token delivery system for each.

You can also read: Oasis Network- A New Blockchain That Protects User Data

Differences between ERC20 and BEP2

In general, BEP2 is a standard created after the ERC20 standard by Ethereum and on the Binance Chain blockchain.

ERC-20 standard

ERC is an acronym for Ethereum Request for Comment. To create a smart contract in Ethereum, you must follow the ERC20 standards. Each smart contract is later used to develop a token or buy and sell it.

Among the most widely used Ethereum tokens are MKR and BAT.

Activities covered by the ERC20 standard

  1. Provides you with information about saving all tokens
  2. It also has information about the total capital of the account holder.
  3. This standard specifies how several tokens send to a specific address.
  4. Withdrawal methods are also written and developed in this standard.
  5. It also specifies the number of tokens sent to the contractor for the payer.

Advantage of ERC20 standard

  1. ERC20 transactions are fast and integrated
  2. Confirmation of the transaction sets quickly.
  3. The failure rate of the contract is as low as possible.
  4. Implementing the ERC20 process to connect to the web client and token is simplified.

BEP-20 Token Standard

On the other hand, BEP20 and BEP2 standards are written and set in the Binance Chain blockchain. These standards extend the ERC20 standard and can be used for a share or a currency.

What is the advantage of BEP2?

  1. BEP2 standard tokens are compatible with ERC20 tokens and all platforms that accept this type of token.
  2. BNB supports this standard.
  3. The processes of this standard are supported through the BSC network.
  4. It can also be exchanged for BEP20 tokens.
  5. Many wallets accept this standard.

What are the essential aspects of token development?

compatibility

In general, any token that wants to develop according to one of the ERC20 or BEP2 standards must fully comply with the written contracts and defaults and be able to use the standard processes on the token.

Cap

Also, each token must have a maximum. In general, each token should be limited to measure competition.

Token Mining

There are different methods for extracting tokens that the developer can specify based on the ERC20 or BEP2 standard.

Burnt Token

Tokens of both standards also have Burnt capability. This method works when the token supply depletes and the price is balanced.

Conclusion

So the main difference between ERC20 token standards and BEP2 is the blockchain that creates these. Other aspects are fully detailed in this article and you can choose one of theme for investment in cryptocurrency market.

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