Just like any other exchange, Binance wanted to own its own token, blockchain, and creation and deployment of smart contracts. This article will help you understand the difference between BEP2, BEP20, and ERC20.
Summary
So Binance has two chains, Once validate chain called the Binance chain and another smart contract chain called Binance smart chain (BSC). IN 2022, Binance merged them, and now it’s one chain called BNB chain. So now the BNB Chain is comprised of:
- BNB Beacon Chain (previously Binance Chain) – BNB Chain Governance (Staking, Voting)
- BNB Smart Chain (BSC) (Previously Binance Smart Chain) – EVM compatible, consensus layers, and with hubs to multi-chains
However, do not get confused because of this. This name change was just a marketing practice; underneath, nothing has changed. There are still two chains. Binance smart chain and Binance chain.
So now, the token standard for the Binance chain is BEP2, and the token standard for Binance smart chain is BEP20, similar to ERC20.
In BEP2, you will need a memo, and the wallet address starts with “BNB“. In BEP20, you do not need a memo, and the wallet address starts with “0X“.
What is Binance Chain?
Binance Chainis a blockchain project started by Binance that was announced in April 2019. It enables anyone to create, use, and trade digital assets on the blockchain. Binance Chain’s native token is BNB.
Binance Coin (BNB), Binance Chain’s native digital asset, functions similarly to Ethereum gas. Users can use BNB to pay for fees or transfers of BEP-2 tokens. BEP-2 coins, like the vast majority of other digital currencies, can be held in crypto wallets. Many prominent hardware wallets like Trezor Model T, Ledger Nano X, or S are supported by many prominent hardware wallets.
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What is Binance Smart Chain?
Binance Smart Chain has gone live on mainnet, enabling the development of smart contracts and the BNB staking function on a parallel blockchain to Binance Chain. Individuals and/or organizations interested in becoming a validator of this new blockchain can collect BNB stakes.
Also, read Binance ETH 2.0 Staking.
What is BEP2?
BEP2 is a Binance Chain token standard, whereas BEP20 is a Binance Smart Chain token.
What is BEP20?
BEP-20 is the Binance Smart Chain token (BSC) standard. BEP-20 is a token standard, similar to Ethereum’s well-known, smart contract-compatible specific protocol ERC-20. The token standard ensures that the token has fundamental capabilities, such as transferring, returning a balance, and examining token ownership.
BEP20 is a programmer-friendly token standard that allows anyone to create tokens. With Ethereum gas fees at an all-time high, there is a sudden want for a smart contract-compatible DeFi platform with cheaper rates.
BEP-20 has a standard set of directives or rules for token management. The BEP-20 coin has also been discovered to be interoperable with the ERC-20 and BEP-2 tokens.
Things to Know
- Firstly, you need to input the destination address correctly.
- Secondly, you should not mention or paste an ERC20 address as a BEP20 withdrawal address.
- Further, you will lose funds if you do such a transaction.
- Moreover, you can transfer between BEP2 and BEP20.
- Lastly, any funds on BEP20, which is BinanceSmartChain, would reflect when you access Pancake swap (A Decentralized Exchange).
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Difference between BEP2 and BEP20
Binance Coin is used to power both the BEP-2 and BEP-20 tokens (BNB). This is because the BEP-2 and BEP-20 are built with a “dual chain architecture,” in which the Binance Chain and Binance Smart Chain complement each other.
If you have a multi-asset/ coin account, your BEP2 address is your TrustWallet’s BNB address. Your Smart Chain coin’s BEP20 address. BEP2 addresses beginning with bnb BEP20 addresses, like Ethereum addresses, begin with 0x.
In short
They are token standards for different blockchains
- BEP-2 Binance Chain
- BEP-20 Binance Smart Chain
How to transfer or deposit funds at Binance?
BEP2 token is only for Binance Chain Network; Those who have Binance.us you should first transfer the bnb to Binance Chain Network and then to your Smart Chain Network configured on Metamask.
- Step 1:Install/ add the Binance Chain Chrome addon
- Step2 :Setup your account accordingly.
- Step 3:Install/ Add the Metamask Chrome extension.
- Step 4:Configure Binance Smart Chain on your Metamask. You can read how to Set up MetaMask for Binance Smart Chain.
Once everything is set, you should have something like the below:
If you have an address prefixed by Bnb, that means it is on the BEP2/ Binance Chain network, and if the prefix is 0x on Binance, it means it is on the BEP20/ Binance Smart chain.
A short reminder: If you are sending to Bep20, you must switch the network from ETH to the newly configured Smart Chain; if you have tokens on Eth at the same address and want to trade them, you must switch the network to Ethereum.
- Step 5:You can now use these addresses on Binance to Metamask and vice versa to withdraw and deposit funds.
How to withdraw funds from your Binance account?
Navigate to Binance > Login > Wallet
Select Fiat and Spot; click withdraw, select the digital coin from the drop-down menu; enter the correct address and network, and click withdraw.
You should now be able to transfer the funds to the destination address.
How to Deposit funds in your Binance account?
You can use the deposit function using BEP2 and BEP20 too. All you need to do is select the appropriate coin and network.
BEP2 vs BEP20: Conclusion
You should know where your money is going. Check twice before making any transaction. Hence, BEP2 and BEP20 provide a good alternative to save gas fees.
PS: This is neither a paid article nor Financial Advice. What has been documented are the findings from my own research out of passion in this space, which is Crypto.
Also, read
- Binance Chain vs Binance Smart Chain
- Set up MetaMask for Binance Smart Chain
- How to buy Bitcoin on Binance in 2021?
- Binance Card Review: Is This the Best Crypto Card? [2021]
- Binance Review 2021 | Everything you need to know
- How to buy Shiba (SHIB) Coin on CoinDCX?
