BEP-20

BEP-20 is a token standard on the Binance Smart Chain (BSC) — now known as BNB Smart Chain — that defines how tokens can be created, transferred, and interacted with on the blockchain. 

What Is BEP-20?

BEP-20 is a token standard on the Binance Smart Chain (BSC) — now known as BNB Smart Chain — that defines how tokens can be created, transferred, and interacted with on the blockchain. It is the Binance equivalent of Ethereum’s ERC-20 standard, designed to ensure compatibility and functionality across the Binance Smart Chain ecosystem.

BEP-20 tokens power a wide range of decentralized applications (dApps), DeFi platforms, and crypto wallets, making them a foundational element of the BSC ecosystem.

How BEP-20 Works

The BEP-20 standard outlines a set of rules and functions that tokens must follow to operate correctly on the BNB Smart Chain. These rules cover things like:

  • Token name and symbol
  • Total supply
  • Balance checks
  • Transfer approvals
  • Smart contract interaction

Because BEP-20 tokens run on BNB Smart Chain — a low-cost, high-speed alternative to Ethereum — they are widely used for DeFi applications, staking platforms, gaming projects, and token launches.

Why BEP-20 Is Important in the Crypto Industry

1. Widespread Token Compatibility

BEP-20 is supported by major crypto wallets and decentralized exchanges (DEXs), making it easy to store, trade, and manage BEP-20 assets.

2. Fast and Low-Cost Transactions

Compared to Ethereum, BNB Smart Chain offers faster confirmation times and lower gas fees, making BEP-20 tokens ideal for high-volume DeFi protocols and retail traders.

3. Easy Token Creation

Projects can easily launch custom tokens using the BEP-20 standard with minimal coding knowledge, fostering rapid growth in the BSC ecosystem.

4. Cross-Chain Compatibility

Many BEP-20 tokens are bridged or mirrored versions of ERC-20 assets (e.g., wrapped ETH, USDT, or BTC), offering users more flexibility and liquidity options.

Common Use Cases for BEP-20 Tokens

  • Stablecoins - BUSD, USDT (on BSC)
  • DeFi governance tokens - CAKE (PancakeSwap), XVS (Venus)
  • Wrapped assets - WBTC (Wrapped Bitcoin), ETH on BSC
  • GameFi & NFT projects - AXS, SLP (bridged to BSC for play-to-earn)

Things to Consider with BEP-20 Tokens

  • Scams and Fake Tokens: Since token creation is easy, always verify the contract address before buying or sending BEP-20 tokens.
  • Network Confusion: Mistaking BSC for Ethereum can result in lost funds if tokens are sent to the wrong network.
  • Centralization Concerns: BNB Smart Chain is often criticized for being less decentralized than Ethereum, which may affect its long-term trust with some users.

BEP-20 is a core building block of the Binance Smart Chain ecosystem, enabling fast, affordable, and scalable token transactions across DeFi, gaming, and utility applications. For traders and investors, understanding how BEP-20 tokens function — and how they differ from ERC-20 — is important in navigating multi-chain wallets, decentralized exchanges, and the evolving world of cross-chain crypto trading.