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Binance, the leading crypto ecosystem introduced its first blockchain, Binance Chain in 2018. It was primarily developed to provide users a high-speed blockchain that could support the execution of extensive transaction data. The chain was designed in a way that everyone can issue, use, and exchange digital assets on top of it. Later on, the Binance Chain was customized to support Decentralized Finance (DeFi) processes. The token standard of the Binance Chain is BEP-2. However, in 2020, Binance launched Binance Smart Chain (BSC) and token development on BSC. What was the need for a new blockchain and how is the token development process different? Let us try and understand:
BEP-2 token is high security, high transaction speed token. It supports the Binance DEX and is interoperable with BEP-20.
BEP-2 is an acronym for Binance Chain Evolution Proposal 2. It is used as a technical standard to create and use new tokens on the Binance Chain. The technical specifications and rules defined by BEP-2 are crucial for a token to operate in the Binance Chain ecosystem. Interestingly, the BEP-2 standard allows these tokens to have different implementations. Thus, the BEP-2 tokens can represent a wide range of crypto assets.
While designing BEP-2 tokens, the following properties need to be defined:
• The new BEP-2 token needs to mention the owner of the issued token which is known as the source address.
• A unique token name needs to be provided to represent the long name. For example, the Binance token is the name of the native Binance Chain token.
• A three-alphabet symbol like BNB that identifies the newly issued token.
• Every newly issued token must also mention the total Supply of the issued token.
• It also needs to be mentioned whether the BEP-2 token can be mintable in the future or not.
Binance ecosystem introduced Binance Smart Chain (BSC) in September 2020. It was designed to support the development of decentralized applications (dApps). As an entirely programmable blockchain, BSC supports smart contract development and users can create token on Binance Smart Chain. Binance introduced BSC with an aim to offer a smart chain to users at a lower price while supporting high transactional speed.
Interestingly, Binance Chain and Binance Smart Chain use the same infrastructural design, consequently capable of cross-chain communication. As a result, the Binance ecosystem is now operating as a dual-chain system.
Token development on BSC is developer-friendly. That’s because this is a cost-effective smart-contract DeFi platform that has lower transaction fees than Ethereum. Furthermore, when you Create Token BEP20, it becomes inherently compatible with ERC-20 and BEP-2.
Advantages of BEP20 token development
1) BEP-20 token standard provides a blueprint to other tokens.
2) When you create token BEP20, it can be used to represent shares, crypto assets, fiat currencies, and more.
3) The BEP-20 token can be used to peg tokens from other blockchains to it.
4) They create a token contract on the smart chain network.
5) Those who act as validators for transferring BEP-20 tokens receive incentives in BNB.
Features you get if you create token on Binance Smart Chain are:
1) Faster transactions and high scalability.
2) Low transaction fees as compared to leading networks like Ethereum.
3) BEP-20 tokens are cross-chain compatible with BEP-2 tokens.
From a developers’ and token owners’ perspective, the Binance Smart Chain token is cost-efficient and enables faster transactions.
It might seem that both the token standards BEP-2 and BEP20 are competing against each other. However, this is not the case. In fact, BEP-2 and BEP-20 have different goals. The differences between them stated in the article will help you understand which token standard will suit the needs of your token.
Interestingly, the dual-chain infrastructure of the Binance ecosystem has enabled both high-speed transactions and the incorporation of smart chain functionality.
If you are planning to build a Binance Smart Chain token or Binance Chain token, Antier Solutions can help. We are known for our comprehensive token development services – from building the token to deployment on the blockchain and marketing.
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