BEP20 VS ERC20. Which Is The Best?

Plenty of crypto coins and tokens have been launched in the first half of the year 2022, and some of the notable ones are Starfish OS (IGT), Miidas NFT (MIIDAS), Thunder Brawl (THB), Rise of Empire (ROEMP), CEJI, KUY, and ZelaaNFT, etc. Everyone very well knows the lucrative nature of the crypto market. Many are expected to launch their cryptos on various platforms soon, hoping to create a revolution in the crypto market. If you are also planning to launch your own crypto coin/token and wondering which token standard (BEP20 vs ERC20) to choose, this blog will help you out. Let us discuss what tokens are, the ERC20 and BEP20 token standards, and the benefits and differences between ERC20 and BEP20 token standards.

What is a Token?

A token is a cryptocurrency built on existing blockchains for a particular project or organization/company. Instead of building their blockchain, companies prefer to develop their cryptocurrency on the existing blockchain, which is more feasible. Some of the major functions of these tokens are

• For Processing transactions
• Acting as a store of value
• To purchase assets on an online platform
• To vote on a dApp
• For crowdfunding and raising money

Though these tokens have many functions, they are mainly used for crowdfunding by startups. Investors will receive these tokens in return for their monetary contributions.

To simplify the token development process, Ethereum and Binance have developed their token standards. In other words, token standards are rules issued to create new tokens on a specific blockchain. For a better understanding, let us first consider ERC20 and BEP20 token standards.

ERC20 Token Standard:

ERC stands for Ethereum Request for Comment. ERC20 is an Ethereum-based token standard for creating new tokens on the Ethereum blockchain. It is the most popular and widely used token standard of all time. It is one of the oldest and trusted token standards. Ethereum smart contracts are deployed to create ERC20 tokens. An ERC20 Token holds information like total token supply, token transfer and withdrawal procedure, token balance in the account, etc.

Benefits of ERC20 Token Standard:

There are plenty of benefits of the ERC20 token standard. Lets us discuss a few of the major benefits

• Transactions can be confirmed more efficiently with ERC20 tokens.
• The ERC20 token transactions are fast and non-modifiable.
• There would be zero to the negligible risk of contract interruption.
• With ERC20, token implementation and execution will be easy for developers.
• As ERC20 tokens are smart contracts integrated, the transactions are risk-free.
• As they possess high liquidity, they can be converted to cash immediately.

BEP20 Token Standard:

BEP stands for Binance Smart Chain Evolution Proposal. BEP20 is a Binance Smart Chain-based token standard for creating tokens on the Binance Smart Chain. It is the second most popularly used token standard. BEP20 inherits all the features of ERC20, as it was created as an extension of the ERC20. Currently, many are using BEP20 token standards because it is faster and cross-chain compatible.

Benefits Of a BEP20 Token Standard:

• BEP20 tokens can be used as a blueprint for developing similar tokens.
• BEP20 tokens are cross-chain compatible, which allows you to work with Ethereum, NEO, Stellar and other tokens.
• Wallets like Trust wallet enable users to store and withdraw BEP20 coins providing convenience and accessibility.
• With BEP20, crypto trading gets much easier and more reliable with more transparency and quicker transactions.
• Tokens of different blockchains can be pegged to the BEP-20 token and used on the Binance Smart Chain.

Since these tokens are built on the blockchain, it is impossible to hack them, or there is no chance of any fraudulent activities occurring.

If you are unsure about choosing the right token for a crypto project, this blog will help you understand the token development process and the key differences between BEP20 and ERC20. By the end of this blog, you can decide the right token standard for your project.

Major Aspects of Token Development

The following are some of the primary aspects of the token development process that you must understand before moving on to the differences between BEP20 vs ERC20.

• Token Compatibility

Whether ERC20 or BEP20 token development, the developed token must comply with their respective token standards.

• Token Cap

The maximum number of tokens that will be created and will be in circulation in the market must be defined. The buyer will get to the limitedness of the token quantity.

• Token Supply

This aspect is very important. The total token supply is predefined during the token generation period.

• Token Issuance

This lets the buyers know how the tokens will be issued, either through staking or mining, or both.

• Token Minting

The process to mint these tokens is defined by the owner. The owner can decide to stop minting tokens to inflate the token value.

• Token Burning

The tokens can be burnt to reduce or increase the demand based on the market. This applies to tokens built on both BEP20 and ERC20 token standards.

• Token Rights

Token owners can choose to have voting rights or governance rights which entitles them to vote for token mining or burning.

• Token Listing

After the predefined number of tokens are created, they can be listed on the exchange platforms.

If you are unsure about choosing the right token for a crypto project, this blog will help you understand the token development process and the key differences between BEP20 and ERC20. By the end of this blog, you can decide the right token standard for your project.

BEP20 vs ERC20: Understanding The Key Differences

Summing Up:

Both ERC20 and BEP20 token standards have their pluses and minuses. You can finalise the token standard you will equip for crypto coins/tokens based on your project requirements. TurnkeyTown offers crypto coins/tokens development on both ERC20 and BEP20 token standards. Hire us for your token development and see outstanding results for yourself.