BEP2 vs. BEP20 vs. ERC20: Comparing Blockchain Token Standards

Introduction to Token Standards

Token standards define the rules for issuing and managing digital assets on blockchain platforms. Three prominent standards—BEP2, BEP20, and ERC20—serve Binance Chain (BNB), Binance Smart Chain (BSC), and Ethereum, respectively. This guide explores their differences, advantages, and use cases.

Understanding Token Standards

What Is a Token Standard?

Tokens are digital units used for:

Transactions
Value storage
Accessing decentralized applications (DApps)
Governance participation

Standards ensure compatibility by specifying:

Total supply limits
Minting/burning mechanisms
Transaction protocols

Popular Token Standards

BEP2: Native to Binance Chain (BNB).
BEP20: Native to Binance Smart Chain (BSC), compatible with Ethereum.
ERC20: Ethereum’s standard for fungible tokens.

Deep Dive into Each Standard

BEP2: Binance Chain’s Standard

Key Features:
- Uses BNB for gas fees.
- Optimized for decentralized exchanges (DEXs).
- No smart contract support.
Top BEP2 Tokens:
1. Fantom (FTM)
2. BTCB (Bitcoin-backed token)
3. BUSD (USD-pegged stablecoin)

👉 Explore BEP2 tokens

BEP20: Binance Smart Chain’s Standard

Key Features:
- EVM-compatible (supports Ethereum tools).
- Low transaction fees (~$0.01–$0.10).
- Fast block verification (~3 seconds).
Top BEP20 Tokens:
1. PancakeSwap (CAKE)
2. SafeMoon (SAFEMOON)
3. C.R.E.A.M Finance (CREAM)

ERC20: Ethereum’s Standard

Key Features:
- Supports smart contracts and DApps.
- High decentralization (70,000+ validators).
- Higher gas fees (~$10–$50 per transaction).
Top ERC20 Tokens:
1. Tether (USDT)
2. USD Coin (USDC)
3. Uniswap (UNI)

Comparative Analysis

BEP2 vs. BEP20 vs. ERC20

Feature	BEP2	BEP20	ERC20
Blockchain	Binance Chain	Binance Smart Chain	Ethereum
Smart Contracts	No	Yes	Yes
Gas Fees	Low	Very Low	High
Speed	Moderate	Fast (~3s)	Slow (~15s)
Security	Centralized	Semi-decentralized	Highly decentralized

👉 Compare token standards

Key Differences Between BEP20 and ERC20

Specifications:
- BEP20 adds token metadata (name, symbol) to ERC20’s base functions.
Transaction Costs:
- BEP20: Cents per transaction.
- ERC20: Dollars per transaction.
Execution Speed:
- BEP20: 5x faster than ERC20.
Security:
- ERC20’s PoW model (transitioning to PoS) offers higher decentralization.

FAQs

1. Which standard is best for DApps?

BEP20 and ERC20 are ideal due to smart contract support. BEP20 offers lower costs, while ERC20 provides broader adoption.

2. Can I convert BEP2 tokens to BEP20?

Yes, via cross-chain bridges like Binance Bridge.

3. Why are ERC20 fees higher?

Ethereum’s PoW consensus requires more computational resources.

4. Is BSC as secure as Ethereum?

Ethereum’s larger validator count enhances security, but BSC’s PoSA balances speed and cost.

Conclusion

BEP2: Best for simple trading on Binance DEX.
BEP20: Optimal for cost-sensitive DApp users.
ERC20: Preferred for high-security, established projects.

As Ethereum transitions to PoS, ERC20 may narrow the gap with BEP20 in speed and fees. Evaluate your priorities (cost, speed, security) to choose the right standard.