BEP2 vs. BEP20 Tokens: What’s The Difference?

Binance is the world’s leading digital asset transfer blockchain based on trading volume and offers two blockchain platforms. The first is Binance Chain (former name), now known as BNB Beacon Chain, and the second is Binance smart chain, now called BNB smart chain.

There are two native tokens on these platforms: BEP2 (BNB chain) and BEP20. While they serve different purposes, they both share some common characteristics. They are both designed to represent digital assets and are often used to represent currencies.

As a result, in today’s article, we will shed some light on the BEP2 vs BEP20 tokens: what’s the difference? Let’s dive in.

What is BEP2 vs BEP20?

The Binance Chain token standard is BEP2, and the Binance Smart Chain token standard is BEP20.

BEP2 is the token model for Binance’s native currency (BNB coin) on both Binance’s centralized and decentralized exchanges. As an exceptional token standard, BEP2 isn’t compatible with other blockchains except for Binance. 

As opposed to BEP2, BEP20 is the default token for the BNB Smart Chain. In compliance with the Ethereum ERC-20 token standard, BEP20 coins are compatible with Ethereum smart contracts.

The standard token guarantees that the token includes essential functions, including exchanging assets, returning credit, and managing token ownership.

Binance Chain vs Binance Smart Chain (Consensus)

Binance chain consensus: This is mainly based on PoS consensus. BNB Beacon Chain is a fork of the Cosmos SDK that uses both Proof of Stake (PoS) and Business Tendermint (BFT) consensus mechanisms. “Cosmos is a decentralized ecosystem of independent alternative blockchains that enables developers to easily establish distinctive, safe blockchains by utilizing several pre-build software development tools,” according to the website.

Binance decided to create a new blockchain in September 2020 and gave it the name Binance Smart Chain. 

Binance Smart Chain Consensus: The Ethereum blockchain and BNB Smart Chain are fundamentally different. In place of proof-of-work, Binance Smart Chain uses a unique proof-of-stake consensus process called Proof of Staked Authority.

BEP2 vs. BEP20 Fees and BEP20 Gas Fees

BEP2 and BEP20 token gas costs are meagre, especially compared with Ethereum’s. ERC-20 token gas fees ranged from $50-100 per transaction on the Ethereum blockchain in 2022, while BEP20 token fees typically cost just a few cents.

A typical gas cost for BEP20 tokens on the BNB Smart Chain in June 2022 was about $0.00001788. Comparatively, Ethereum gas prices dropped over this time and were essentially flat at $1 to $2 by June 2022.

What is BEP2?

As mentioned earlier, BEP2 is a native token standard under the Binance chain. 

Binance Chain and BEP2

The fundamental description of BEP2 provides a solid framework for explaining the distinctions between BEP2 and BEP20. It is crucial to remember that BEP2 coins are a crucial component of Binance Chain, the company’s first blockchain network. Binance Chain powered the decentralized Binance exchange, which specialized in processing transactions between decentralized crypto networks.

Along with the ability to communicate with Binance Smart Chain, Binance Chain can operate as part of the entire Binance ecosystem. It’s crucial to keep in mind, however, that the Binance Chain model does not facilitate the execution of smart contracts. Furthermore, Binance Chain is incompatible with the creation of dApp ecosystems.

BEP2 Token List

• Binance Coin (BNB): Binance Token/coin (BNB) is the original BEP2 token and is the platform’s native cryptocurrency.
• BEP2 USDD (USDD): The native stablecoin of the TRON blockchain, USDD, is pegged to the dollar. Currently supported by TRX (TRON’s native currency) and Bitcoin, it is an over-pledged stablecoin.
• BEP2 PancakeSwap (CAKE): The BNB Beacon Chain is the native operating environment for PancakeSwap, a decentralized exchange (DEX).
• BEP2 THORChain (RUNE): The native coin of the decentralized liquidity protocol THORChain is known as BEP2 THORChain (RUNE). By serving as a vault manager, THORChain permits consumers to swap a range of native layer-1 assets, including BTC.
• Ellipsis (EPS): The native currency of the Ellipsis network, a DEX and token swapping system on the BNB Beacon Chain, is Ellipsis (EPS). 50% of all exchange fees go to EPS stakers since they provide the exchange with liquidity.
• STEPN (GMT): The Stepn “move-to-earn” exercise-based dApp is indigenous to the Solana blockchain and uses the token STEPN (GMT).
• Coin98 (C98): The native token of the Coin98 protocol. Which also features a DEX, a unique wallet, a cryptocurrency investment tracker, and other assets, is the Coin98 token.
• Chain (XCN): Chain’s native cryptocurrency is called Chain (XCN). The chain offers Blockchain cloud infrastructure and Web3 through its assets Sequence and Chain Cloud.
• Trust Wallet Token (TWT): Trust Wallet, a well-known non-custodial wallet, has a native token called TWT.
• Bitcoin BEP2 (BTCB): The BNB Beacon Chain is connected to Bitcoin through the Bitcoin BEP2 (BTCB) protocol.

The Top BEP2 Wallets

• Binance Chain Wallet: The Binance Chain Wallet is the company’s “official crypto wallet for utilizing Ethereum, Binance Chain, and Binance Smart Chain. It includes a simple mobile app and is compatible with BEP2, BEP20, and ERC-20 tokens.
• Trust Wallet: One of the most adaptable wallets available today, it offers integration with over 4.5 million coins and tokens.
• D’CENT wallet: The D’CENT wallet provides desktop and mobile wallets and biometric hardware wallets. It works with more than 27,000 different coins and tokens in addition to Bitcoin, ETH, XRP, RSK Smart Bitcoin, Bitcoin Cash, Bitcoin Cash ABC, etc.
• SafePal S1 Wallet: The hardware wallet SafePal S1 is renowned for its integrated security and anti-hacking capabilities. Because it runs entirely offline, the wallet is highly safe.
• TokenPocket Wallet: TokenPocket is a cross-chain cryptocurrency wallet that supports a wide range of tokens, including those on the Cosmos blockchains and Bitcoin. Also, Ethereum ERC-20 tokens, BEP-20 tokens, BEP2 tokens, and TRON TRC-20 tokens.
• Ellipal Titan: The Ellipal Titan hardware wallet is a more giant “big-screen” smartphone that works with Android and iOS devices. This wallet supports BEP2, BEP20, ERC-20, and these TRON TRC-20 coins.

Advantages of BEP2

One of the significant advantages of BEP2 is the convenience of trading cryptocurrencies among decentralized network exchanges (DEX). However, BEP2 does not support smart contracts, which are essential to many coins and DApps.

What is the BEP20 Token Standard?

The native coins on the Binance Smart Chain are the BEP20 standard BNB tokens. The BEP20 token standard’s inspiration was from the Ethereum blockchain’s ERC20 token standard, its most significant feature.

The BEP20 token standard offers interoperability with the Ethereum network’s smart contracts and shares many characteristics with the ERC20 token standard. Additionally, BEP20 has an advantage over BEP2 thanks to its support for the EVM or Ethereum Virtual Machine. Compatibility, which makes it simple to convert BEP20 tokens to BEP2 tokens, is another noteworthy feature of BEP20 tokens.

Binance Smart Chain and BEP20

The enormous success of Ethereum and the dApps ecosystem led to the emergence of the Binance Smart Chain. Additionally, one of the key factors that motivated Binance to create BSC was the emergence of new decentralized industries like NFT, crypto gaming, and NFT. If Binance were to offer all these functions, a blockchain network with support for smart contracts would be necessary.

Although Binance Chain sounded like a good idea, it could not support smart contracts or sophisticated programming languages. Binance Smart Chain was created to address the shortcomings of Binance Chain. BSC (Binance smart chain) uses the Proof of Stake Authority, or PoSA, consensus mechanism in place of the Proof of Work consensus process.

BEP20 Token List

Binance-Peg Ethereum (ETH): BNB Smart Chain’s Ethereum network.

Binance-Peg BSC-USD (BSC-USD): Binance-Peg BSC-USD (BSC-USD) uses a stablecoin basket tethered to fiat, USDT, to enable payments and the growth of open financial infrastructure.

Binance-Peg USD Coin (USDC): USDC on the network of the BNB Smart Chain.

Wrapped BNB (WBNB): To function on the BNB Smart Chain network, BNB must be wrapped because it is a BEP2 token.

Binance-Peg Cardano Token (ADA): BNB Smart Chain system connected with Cardano (ADA).

Binance-Peg (BUSD): On the Ethereum blockchain, Paxos and Binance has created the 1:1 U.S. dollar-backed stablecoin known as BUSD.

Binance-Peg XRP (XRP): The cryptocurrency Ripple (XRP) is employed for enterprise collateral settlements. XRP token on the BNB Smart Chain system is known as Binance-Peg XRP.

Binance-Peg (DAI): By market capitalization, DAI is the biggest decentralized stablecoin worldwide. It is a stablecoin created using the MakerDAO ecosystem and is overcollateralized. DAI on the BNB Smart Chain system is referred to as Binance-Peg DAI.

Binance-Peg Polkadot (DOT): The Polkadot platform, a blockchain of linked blockchains, uses the DOT token as its currency. The DOT token on the BNB Smart Chain network is called Binance-Peg DOT.

The Top BEP20 Wallets

Ledger Nano X: Unlike many other wallets, the Ledger Nano X is compatible with Linux, making it one of the world’s most widely used hardware cryptocurrency wallets. More than 1,800 coins and tokens, including BEP20 tokens, Ethereum ERC20 tokens, XRP, etc., are supported by the Ledger Nano X, which has a starting price of $149.

MetaMask: With over 30 million active users monthly, MetaMask is the most widely used non-custodial cryptocurrency wallet in the world. The MetaMask wallet supports over 400,000 tokens. And connects to Ethereum, BNB Smart Chain, and several well-known Ethereum Layer-2s, such as Polygon, Optimism, etc.

Math Wallet: Another well-known cryptocurrency wallet is Math Wallet, which supports over 3,000 tokens and coins from more than 50 different blockchains. Such as — Bitcoin, Ethereum, TRON, Polkadot, EOS, etc.

Advantages of BEP20

The BEP-20 token’s key advantage is its compatibility with all Ethereum blockchain networks. BEP-20 coin is ERC-20 compatible, so you can keep it in any wallet that supports ERC-20. Smart contracts feature on the Ethereum blockchain using BEP-20 tokens to implement tokens (crypto assets) or other contracts.

Differences between BEP2 and BEP20

A few variances between the two token standards can be seen. A detailed comparison between BEP2 and BEP20 tokens considers every possible point of distinction.

Here is a comparison of the two to help you see the broader implications of BEP2 and BEP20.

• Different Blockchain: The distinction between the BEP2 token and the BEP20 token can be found on the Binance blockchain, which is the first and most clear fact.
• Smart Contracts Compatibility: The capability for smart contracts is the second crucial distinction between BEP2 and BEP20 that deserves special attention. Binance Smart Chain’s compatibility with smart contracts provides freedom for creating web3 projects and dApps.
• Interoperability With Ethereum: Interoperability with Ethereum is the second obvious distinction between BEP2 and BEP20 tokens. The BEP2 token standard, exclusive to the Binance ecosystem, is the first native token standard for the Binance Chain. BEP2 tokens cannot be used on other blockchain networks on the Ethereum platform.
• Consensus Protocol: One of the most significant indicators of the difference between Binance Chain and Binance Smart Chain is the consensus procedures. Binance Chain employs the Proof of Stake consensus algorithm, and Binance smart chain uses Proof of stake authority. The comparison between BEP2 and BEP20 favours BEP20 due to its Proof of Stake Authority consensus process.
• Token Address: The token addresses are also a significant point of contrast between BEP20 and BEP2. The BEP2 token wallet address begins with “bnb” at the beginning, indicating the requirement for a MEMO. As with Ethereum wallet addresses, the BEP20 token wallet addresses begin with “x0”.
• Transaction Fee: A comparison of BEP20 and BEP2 shows how transaction costs can reduce a project’s appeal since developers are concerned about that. The Binance CEX and DEX require BEP2 token transaction fees. Contrarily, BEP20 coins do not suggest that Binance CEX and DEX transaction fees are necessary.

Comparison Factor	BEP2	BEP20
Blockchain	Developed under Binance Chain	Developed under Binance Smart Chain
Ethereum Compatibility	no functionality for Ethereum transfer	BEP20 coins are built on the foundation of erc20 tokens and are Ethereum compatible.
Smart Contracts	Not compatible	designed primarily to provide support for smart contracts in the Binance network
Token Address	Uses BnB and requires a memo	Like Ethereum wallet address Begin with x0
Consensus	PoS (Proof of Stake)	Proof of Stake authority (PoSA)
Adaptability	Insufficient backing for adaptability	Adaptable in determining the number of tokens to be created and burned in order to control the supply of BEP20 tokens.
Transaction Fees	Requires transaction fee for CEX & DEX	Do not require any transaction fees

The Top BNB Smart Chain dApps

Blink: BLINK is a DApp on the Binance Smart Chain, although it is not a Defi DApp like many others; instead, it is a gaming platform. BLINK is a separate website with all wagers placed in $BNB that was developed in cooperation with Binance and the WINK platform.

PancakeSwap: On the Binance Smart Chain, the PancakeSwap (dApps) digital platform enables the exchange of two tokens. 

JuISwap: This Defi DApp created on the BSC intends to be the Binance Smart Chain’s UniSwap, with more than 4.6k users per month. The JustLiquidity-developed DApp has a trading volume of more than $6 million. 

RocketGame: A gaming platform with a wallet mode and DApp mode that aims to offer top-notch gaming and entertainment experiences. 

BurgerSwap: On the Binance Smart Chain, it is the first democratized Defi platform. BurgerSwap uses smart contracts to create a democratic, decentralized exchanging system that permits community voting to list, delist, and change platform parameters. 

The Takeaway

That’s all from today’s round-up about the BEP2 vs BEP20 tokens: what’s the difference? 

In the end, BEP20 is the more advantageous option between BEP2 and BEP20. BEP2 is the original token standard in the Binance ecosystem. However, BEP20 is driving Binance’s adjustment to become even more potent for web3. A smart contract platform and Ethereum compatibility make BEP20 the future of Binance.