What Is BEP20 and What You Need to Know About Tokens on the BNB Blockchain

What Is BEP20 and What You Need to Know About Tokens on the BNB Blockchain

Discover the BNB blockchain and its BEP20 token standard through our comprehensive guide. After exploring the features and functionality of tokens, you’ll become proficient users of the BNB network.

What Is BNB Blockchain?

BNB Blockchain, developed by Binance, is a decentralized network designed to facilitate fast and low-cost transactions. Powered by the Binance Smart Chain (BSC), launched in September 2020, it offers users access to various decentralized applications (DApps) and tokenized assets. With its native token, BNB, users can participate in network governance, pay for transaction fees, and access various DeFi services. The BNB Blockchain provides a robust infrastructure for users to engage in the rapidly growing ecosystem of decentralized finance.

What Is BEP20?

BEP20 is a token standard on the BSC, introduced to facilitate the creation and management of digital assets. It ensures compatibility with the BSC ecosystem, enabling seamless interaction with various decentralized applications (DApps) and services. Tokens built on the BEP20 standard are highly customizable, supporting features such as token burning, minting, and transfers. With BEP20 tokens, users can participate in a wide range of activities, including trading, staking, and decentralized finance (DeFi) protocols, within the BSC network.

A token is a digital asset within blockchain networks representing ownership, access rights, or functionalities. Built on platforms like BNB blockchain, they utilize smart contracts and serve purposes such as granting access to services or facilitating voting. They’re essential in various blockchain ecosystems, enabling decentralized finance and non-fungible tokens.

Polular Tokens on BEP20

Despite being relatively new compared to Ethereum, the Binance Smart Chain (BSC) has garnered users’ affection and developers’ interest due to its fast transactions and low fees. The spectrum of projects building their applications on the Binance Smart Chain is vast, encompassing DeFi, gaming, decentralized exchanges, marketplaces, and social platforms. BEP20 features both entirely unique projects and those that are represented across multiple chains, such as ERC20-based projects. Let’s take a closer look at some prominent members of the BEP20 community.

Top BEP20 Tokens Top BEP20 tokens. Source: Bscscan.com

Learn more about the TOP BEP20 tokens:

Obtaining a BEP20 Address for Your Tokens

After understanding what BNB Chain and BEP20 represent, it’s time to obtain a BEP20 address for your tokens. This process is quite simple and takes only a few minutes - just download Gem Wallet, create a wallet, and on the assets page, select Binance Smart Chain. The alphanumeric string generated will be your BEP20 address for receiving BNB or other BEP20 tokens.

Please note that your BEP20 address is the same for all BEP20 tokens and matches your BNB Chain address. Thus, don’t be surprised when receiving tokens from entirely different projects to find that you have the same receiving address.

Active BEP-20 Addresses Active BEP-20 Addresses. Source: Bscscan.com

Understanding the Similarity Between Your BEP20 and ERC20 Addresses

Your BEP20 address is identical to your ERC20 address because both standards utilize Ethereum’s addressing system. However, it’s important to note that you cannot directly send ERC20 tokens to a BEP20 address. ERC20 transfers will be received in the corresponding ERC20 format, so ensure compatibility when making transactions to avoid any potential loss of funds.

Acquire BEP20 Tokens

Once you’ve obtained your BEP20 address, you can proceed to receive tokens onto it. There are several options available: receiving transfers from your exchange account or friends, exchanging one token for another, or purchasing BEP20 tokens using a credit card. Each option has its advantages; you just need to choose the one that suits your needs.

  • Receiving transfers: Ideal if you already have tokens on a platform like an exchange.
  • Buying BEP20 with a credit card: A great choice for those prioritizing speed, security, and convenience. This method eliminates the risk of errors in the address, which, despite seeming minor, can result in significant losses in crypto assets.
  • Swaps: Suitable if you have other tokens that you can exchange within the chain or through cross-chain swaps.

What You Need to Know about Storing BEP20 Tokens

Storing your BEP20 tokens requires responsible consideration. The market offers a wide range of storage products for BEP20 tokens with varying levels of security and privacy - the choice is always yours. Here are the advantages of storing BEP20 tokens with Gem Wallet:

  • Self-custody: Access to your crypto assets is in your hands. While this solution provides you with full control, it also imposes full responsibility for the security of your key.
  • Open source: The wallet’s open-source code allows for verification and assurance of the stated program functionality, as well as facilitates prompt resolution of potential vulnerabilities with the help of third-party security researchers.
  • Privacy: High standards for user privacy and confidentiality are fundamental to the development and addition of new features.
  • Functionality: The BNB chain is a highly developed and complex structure compared to the original Bitcoin blockchain. Various smart contracts, DEX, swaps, staking, web3 authentication, and more require corresponding support from your wallet. Gem Wallet supports and continually implements new features to ensure you always have access to the latest BNB Chain functionalities.

How to Send BEP20 Tokens to Another Address

To send your BEP20 tokens to another address, you need just two things: the recipient’s address on the BNB Chain network and a small amount of BNB in your wallet balance to cover the network fee. Although the BNB Chain is known for its low fees compared to other blockchains, they still exist, and without BNB in your balance, you won’t be able to send your BEP20 tokens. Therefore, a wise decision would be to keep a small amount of BNB in your balance if you plan to use BEP20 tokens. Additionally, unused BNB can be staked to earn passive income, which can cover the cost of fees for your next BEP20 transaction.

What Else Can You Do with BEP20 Tokens?

Besides the basic functionalities, BEP20 assets also possess the capability of exchange - swap.

Swap BEP20 Tokens

Your BEP20 assets support swap technology, a convenient tool when you want to acquire a specific token. With just a few clicks, you can exchange your BNB or other BEP20 tokens for the desired one, or vice versa. All of this happens within the Gem Wallet interface, so you won’t need any additional registrations or actions. Simply go to the profile of the desired asset and select the “Swap” button. Alternatively, you can access the web interface of the DEX and authenticate through your wallet.

BEP20 tokens swap volumes on Pancakeswap BEP20 tokens swap volumes on Pancakeswap. Source: pancakeswap.finance

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