Blockchain technology is gaining prominence among crypto startups, business class people, and entrepreneurs. It is due to its potential benefits like security, transparency, privacy, and a lot more. Blockchain network is widely used in all major industries and the implementation of blockchain increases trust and security. When it comes to crypto, many people already aware of crypto tokens. Because crypto tokens made a huge positive impact in the marketplace.
As of now, we can see more than 4000 cryptocurrencies and crypto tokens in the marketplace. Because the usage of them is skyrocketing and many new tokens are introduced for raising funds through the token sale platform. Crypto tokens are widely used for multiple purposes like trading, raising funds, payments, providing service, and more. Among these, startups mostly prefer crypto tokens for fundraising. So for creating a token, you need to use the existing popular blockchain like Ethereum or Binance smart chain.
Both ethereum and binance smart chain has popular token standards for crypto token creation. For ethereum, ERC20, ERC721, ERC1400, ERC1155, etc. And for Binance smart chain, we have the BEP20 token standard. In Ethereum, the ERC20 token standard is more familiar and popular in the global marketplace. On the other side, BEP20 is also a trending token standard in the marketplace. That’s why startups got confused about which to choose for their crypto token business.
In this article, let us discuss both ERC20 and BEP20 token standards. This article will help you to choose the right token standard for starting your crypto token business.
Let us begin with…
What are ERC20 and BEP20 Tokens?
The ERC20 tokens are created under the powerful Ethereum blockchain network. Whereas BEP20 tokens are completely developed under the Binance smart chain. These two standard tokens are most popular in the crypto marketplace. So, tokens developed in ERC20 and BEP20 standards are called ERC20 tokens and BEP20 tokens. As we know that, Ethereum and Binance smart chain is the next capitalized Blockchain token development platform. From the recent report, the total market capitalization of all ERC20 tokens is $46 billion. Whereas BEP20 tokens were estimated to be $1.2 billion.
Popular BEP20 and ERC20 Tokens in the Marketplace
Here is the list of top ERC20 and BEP20 tokens that are ruling the global marketplace.
Qtum
Zilliqa
Bytom
Vechain
ICON
Wrapped bitcoin
Binance PEG BUSD
Venus
Wrapped BNB
Bakery token
Safe moon
Swipe
These are prominent ERC20 and BEP20 tokens in the blockchain marketplace.
ERC20 Standard
ERC20 standard is one of the best ethereum token standards in the blockchain industry. Crypto startups prefer this standard for token creation and raising funds. Because Ethereum is a powerful blockchain and has extraordinary features. As already said, there are several Ethereum token standards that a developer can choose from when creating a crypto token. But among them all, the ERC20 standard is the most preferable one. ERC20 is an acronym and it stands for Ethereum Request for Comments. The number 20 represents the Request ID. This token standard is a set of rules and that was programmed by a developer into a token’s smart contract.
Features of ERC20 Standard Tokens
Here is the list of features that you need to enable while developing an ERC20 token.
ERC20 Contact generation
ERC20 token wallet app for android and IOS.
Setting Initial Supply
Setting No of Issues
Setting Fractions
Deploy Contracts
Generate Tokens
Validate Contract
High-end security systems
BEP20 Standard
Like Ethereum, BEP20 is the popular token standard under the binance smart chain. It is an upgrade to the BEP2 standard. Experts in the crypto space say that BEP20 standard tokens are fast and secure when compared to other standard tokens. It is the technical standard to create BEP20 tokens and it will be deployed on the Binance Smart Chain. The BEP20 standard is compatible with the ERC20 standard and BEP2 standard. The functions that define the BEP20 standard are mostly modifications of the ERC20 standard. Those modifications were done to enhance the existing ERC20 standard. Also, optimize speed and transaction cost.
Features of BEP20 Standard Token
Here is the list of features that you need to enable while creating a BEP20 token.
Completely Decentralized
Interoperable with other frameworks
Smart Contracts Implementation
BEP20 Compliant
Verified Source Code
Details of the token
Customizable decimals
Supply Type
Access Type
Burnable
Cross-matching with BEP2
Dual Chain Architecture
Benefits of ERC20 vs BEP20 Standard Token
Convenience
Both ERC20 and BEP20 standards enhance compatibility & interoperability. These two standard tokens had conflicting parameters. Besides, these two standards have made it easier for blockchain developers to create crypto tokens that can work together.
Higher Liquidity
These two standard tokens are interoperable and interconvertible. So pooling their liquidity together is easy.
Better User Experience
As we know, there are more than 4,000 cryptos in the market right now. So there will be many crypto wallets for supporting those crypto coins. But when it comes to BEP20 vs ERC20 standard, you only need one crypto wallet to manage your crypto tokens.
Final Words
We have discussed the features, benefits, and other essential factors of BEP20 and ERC20 standard tokens. Both have pros and cons in their functions but based on your business concepts, the choice is yours. Both are the right platforms for crypto token creation. All you need to do is hire a team of blockchain developers from the leading ERC20 token development company in the blockchain industry. They will assist you to create ERC20 or BEP20 tokens as per your business needs at a reasonable cost.