ERC-20 vs. BEP-20: Choosing the Right Standard for Your Token Development

Creating new digital currencies, called “token development,” is becoming more popular in the cryptocurrency world. You can build these tokens on different “blockchains,” which are like online ledgers. Two popular ways to create these tokens are ERC-20 and BEP-20. Both allow you to create tokens that are all the same (like regular coins), but they work on different blockchains: Ethereum for ERC-20 and Binance Smart Chain for BEP-20. Each has its own benefits. This blog will highlight the key differences between ERC-20 and BEP-20 to help you choose the best option for your own token project.

Let’s start by understanding what ERC-20 and BEP-20 tokens are before we look at how they differ.

ERC-20 is a set of rules for creating digital currencies called “tokens” on the Ethereum blockchain. These tokens are all the same, like regular coins, which makes them useful for things like paying for things in apps, stablecoins that hold their value, and even tokens that give you a say in how those apps are run. To work with wallets, exchanges, and other parts of the Ethereum system, these tokens must follow these specific rules. These rules include things like how to send tokens, check how many tokens someone has, and give permission to spend tokens.

BEP-20 is a set of rules for creating digital currencies on the Binance Smart Chain, a blockchain made by the well-known cryptocurrency exchange, Binance. Just like ERC-20, BEP-20 creates tokens that are all the same. However, BEP-20 tokens work on the Binance Smart Chain instead of Ethereum. BEP-20 is designed to work well with ERC-20 tokens, but it’s made to be faster and cheaper. This makes BEP-20 a good choice for projects that want quick and affordable transactions without sacrificing security.

Now that we know what ERC-20 and BEP-20 tokens are, let’s see the key differences between ERC-20 and BEP-20.

Blockchain Network

ERC-20 tokens are created on the Ethereum blockchain. Ethereum is the first and most popular platform for building “smart contracts,” which are like computer programs that automatically execute agreements. Many developers use Ethereum to create apps and digital currencies, making it a very popular and well-known platform.

BEP-20 tokens are created on the Binance Smart Chain. BSC is a newer blockchain that’s becoming increasingly popular, especially compared to Ethereum. This is because it’s much cheaper and faster to use.

Speed & Cost

ERC-20 transactions on the Ethereum network can sometimes be slow and expensive. This is because many people are using Ethereum at the same time, which can cause traffic jams and make transactions take longer. It also means that users have to pay more to get their transactions processed quickly.

BEP-20 tokens are easier to use on the Binance Smart Chain because it can handle many transactions quickly and cheaply. Compared to Ethereum, BSC is much faster and less expensive to use. This makes BEP-20 tokens a good choice for projects that need to handle a lot of transactions and keep costs low.

Is This Widely Used?

ERC-20 tokens are part of the Ethereum ecosystem, which is like a big network of apps, financial tools, and trading platforms all built on the Ethereum blockchain. Ethereum has a strong reputation and many users, making it a popular choice for developers to build their projects on.

BEP-20 tokens are mainly used on the Binance Smart Chain, which has its own trading platform called PancakeSwap and many other apps. Binance has built a strong network around this platform. This makes BEP-20 tokens a good option for projects that want to easily reach the many users who already use Binance and take advantage of the opportunities within the Binance ecosystem.

Security

ERC-20 tokens are built on Ethereum, a network known for being very secure and decentralized. This means it’s hard for anyone to control or manipulate it. Ethereum has been thoroughly tested and has a large community of people who work hard to keep it safe and reliable.

BEP-20 tokens also benefit from the security of the Binance Smart Chain. It’s generally considered safe and fast. However, unlike Ethereum, the Binance Smart Chain is controlled more by Binance and a smaller group.

Does it Work Together?

ERC-20 tokens work with almost all wallets, trading platforms, and apps built on the Ethereum network. This makes them very flexible and easy to use for creating new digital currencies.

BEP-20 tokens work with most wallets and trading platforms on the Binance Smart Chain. You can also easily move them to Ethereum and other networks. However, the Binance Smart Chain is newer and doesn’t have as many connections to other systems as Ethereum does.

• If you want your token to be widely used, ERC-20 is a great choice. Because it’s a very common standard on the Ethereum network, your token will be compatible with many existing wallets, trading platforms, and other applications. This means more people can easily use your token.
• Security and decentralization are important. ERC-20 is a good option. Ethereum is known for being very secure and independent, meaning it’s difficult for anyone to control or manipulate it. This provides a strong and safe foundation for your token.
• If you want your token to be used by people who already use Ethereum, such as those who use apps for decentralized finance, digital wallets, and trading platforms, then ERC-20 is the best option. This is because it’s designed to work smoothly within the Ethereum system.

• You need your transactions to be fast and affordable, BEP-20 is a good choice. Binance Smart Chain is known for processing transactions quickly and at a low cost, which can be a big benefit.
• You want to reach the many users who already use the Binance ecosystem. This includes the popular trading platform, PancakeSwap, and other applications built on the Binance Smart Chain.
• If you want to handle many transactions quickly and efficiently, BEP-20 might be a better choice. Ethereum can sometimes be slow and expensive, especially when there’s a lot of activity. BEP-20 provides a faster and more affordable option for projects that need to handle a large number of transactions.

ERC-20 and BEP-20 both have their own advantages. ERC-20 is popular because it’s built on Ethereum, a well-known and secure platform. However, BEP-20 is cheaper and faster to use. The best choice depends on what matters most to your project. If security and being part of a large network are essential, ERC-20 might be a better option. If you need quick and affordable transactions, BEP-20 could be a good fit. Both offer excellent tools for creating successful digital currencies.