Complete guide to ERC20 and BEP20: from differences to latest uses
Introduction
As blockchain technology rapidly evolves, the cryptocurrency standards “ERC20” and “BEP20” play an important role. However, many users are confused about their differences and how to use them. In this article, we will thoroughly explain the basic differences between ERC20 and BEP20, as well as the latest solutions to effectively utilize them.
What is ERC20?
ERC20 is the standard for tokens on the Ethereum blockchain. It enables the creation of unified tokens on the Ethereum network and is widely used as digital assets and utility tokens.
Features of ERC20
– Compatibility: Easily compatible with various services and wallets on the Ethereum network.
– Standardization: Token creation and trading is standardized, making it easy for developers to work with.
– Widespread adoption: It has been adopted in many projects and has high reliability in the market.
What is BEP20?
BEP20 is the standard for tokens on Binance Smart Chain (BSC). Like ERC20, BEP20 also utilizes smart contracts to create tokens, but BSC enables faster and lower cost transactions.
Features of BEP20
– Fast transactions: Faster transactions than Ethereum.
– Low fees: Low transaction costs, suitable for small transactions.
– Compatibility: Compatible with ERC20 tokens, allowing cross-chain transactions.
Difference between ERC20 and BEP20
| Features | ERC20 | BEP20 |
|————|————————–|——— ——————|
| Blockchain | Ethereum | Binance Smart Chain |
| Transaction speed | Relatively slow | Fast |
| Fees | Relatively high | Low |
| Compatibility | Limited | Compatible with ERC20 tokens |
How to use ERC20 and BEP20
How to use ERC20
1. Creating digital assets: ERC20 is ideal for creating digital assets and utility tokens.
2. ICO implementation: ERC20 tokens are widely used in initial coin offerings (ICOs).
3. DApp development: ERC20 tokens are also used for decentralized application (DApp) development.
How to use BEP20
1. Fast Transactions: BEP20 is suitable when you need fast transactions.
2. Low-cost trading: Ideal for small trading and experimental projects.
3. Cross-chain transactions: Cross-chain transactions are possible by taking advantage of compatibility with ERC20 tokens.
Solution: How to effectively utilize ERC20 and BEP20
1. Choose according to purpose: When investing or trading, choose ERC20 or BEP20, considering transaction speed and cost.
2. Choosing a wallet: Choosing a wallet that supports both tokens will give you more flexibility in your transactions.
3. Use a cross-chain bridge: Use a cross-chain bridge to move assets between ERC20 and BEP20.
Summary of this chapter
ERC20 and BEP20 each have different characteristics and can meet different needs. With the right knowledge and tools, it is possible to make the most of these tokens.
Related Links
– [Binance Smart Chain Official Website]
