In the rapidly evolving world of blockchain and decentralized applications (DApps), token standards play a foundational role in ensuring compatibility, functionality, and scalability. Among the most widely adopted are BEP2, BEP20, and ERC20—each serving as a technical blueprint for issuing and managing tokens on their respective platforms: BNB Chain, Binance Smart Chain (BSC), and Ethereum.
Understanding these standards is essential for developers launching new projects, investors evaluating opportunities, and users navigating cross-chain transactions. This guide explores each standard in depth, compares their key features, and helps you determine which might be best suited for your needs.
What Is a Token Standard?
A token standard is a set of rules that defines how a cryptocurrency token operates within a blockchain ecosystem. These rules govern critical functions such as:
- Total token supply
- Token transfer mechanisms
- Transaction fees (gas costs)
- Minting and burning processes
- Smart contract interactions
By adhering to a standardized framework, tokens ensure interoperability with wallets, exchanges, decentralized applications (DApps), and other smart contracts. Without such standards, every project would implement its own logic, leading to fragmentation, security risks, and poor user experience.
For example, when launching a new DeFi protocol or NFT marketplace, developers must follow the relevant token standard to guarantee that their tokens can be stored, traded, and integrated seamlessly across platforms.
The Three Major Blockchain Token Standards
What Is BEP2?
BEP2 (Binance Chain Evolution Proposal 2) is the native token standard for the BNB Beacon Chain, originally designed for fast and efficient peer-to-peer transactions. It enables the issuance of digital assets directly on Binance’s blockchain infrastructure.
Key features of BEP2 include:
- Optimized for high-speed trading on decentralized exchanges (DEXs)
- Supports multiple coin pairs for seamless crypto swaps
- Requires BNB as the base currency to pay transaction fees (gas)
While BEP2 excels in facilitating quick trades and low-latency settlements, it lacks support for smart contracts, limiting its utility in the broader DeFi and DApp ecosystem. As a result, it's primarily used for exchange-based operations rather than complex programmable finance.
👉 Discover how blockchain standards impact real-world crypto transactions.
What Is BEP20?
BEP20 is the dominant token standard on Binance Smart Chain (BSC)—a blockchain built to combine the speed and affordability of Binance’s infrastructure with full smart contract capabilities.
Designed to be compatible with Ethereum’s ERC20, BEP20 allows developers familiar with Ethereum tools to easily migrate or deploy DApps on BSC with minimal changes. It supports advanced functionalities such as staking, yield farming, and automated market makers (AMMs).
Key advantages of BEP20:
- Backward compatibility with ERC20
- Uses BNB for gas fees (typically under $0.10 per transaction)
- Average block confirmation time: ~4 seconds
- Supported by major wallets like MetaMask, Trust Wallet, and MathWallet
Moreover, BSC introduced a cross-chain bridge that enables users to transfer assets between BEP2 and BEP20, as well as between BSC and Ethereum (ERC20). This interoperability enhances liquidity and accessibility across ecosystems.
What Is ERC20?
ERC20 (Ethereum Request for Comment 20) is the original and most widely adopted token standard in the blockchain space. Built on the Ethereum network, it powers thousands of DApps, DeFi protocols, and utility tokens.
ERC20 tokens are fungible, meaning each unit holds identical value—unlike NFTs (governed by ERC721). Examples include stablecoins like USDT and governance tokens like UNI.
Core functions defined by ERC20:
totalSupply()– Returns total token supplybalanceOf(address)– Checks balance of an addresstransfer(address, uint256)– Sends tokensapprove(address, uint256)– Allows third-party spendingallowance(owner, spender)– Checks spending limittransferFrom()– Enables delegated transfers
Despite higher gas fees (often exceeding $15 during peak times), ERC20 remains the gold standard due to Ethereum’s robust security model, vast developer community, and extensive ecosystem.
BEP2 vs. BEP20 vs. ERC20: Which Is Better?
With all three standards now defined, let’s compare them across key dimensions.
🔧 Technical Specifications
| Feature | BEP2 | BEP20 | ERC20 |
|---|---|---|---|
| Smart Contract Support | ❌ No | ✅ Yes | ✅ Yes |
| Gas Currency | BNB | BNB | ETH |
| Average Transaction Fee | <$0.01 | <$0.10 | $5–$50+ |
| Block Time | ~1 second | ~4 seconds | ~15 seconds |
| Ecosystem Size | Limited | Growing (~800 DApps) | Largest (~3,000+ DApps) |
Notably, BEP20 extends ERC20, adding optional metadata like token name, symbol, decimals, and owner address—making it more developer-friendly out of the box.
💸 Transaction Costs and Speed
When comparing BEP20 vs. ERC20, cost efficiency is a major differentiator.
- BEP20: Transactions typically cost just a few cents thanks to BSC’s Proof-of-Staked Authority (PoSA) consensus mechanism.
- ERC20: Fees fluctuate dramatically based on network congestion; they can spike during high-demand periods like NFT drops or major DeFi launches.
Speed-wise, BEP20 confirms transactions about 3–5x faster than Ethereum under normal conditions. However, Ethereum’s transition to Proof-of-Stake (PoS) via “The Merge” has improved scalability and reduced energy consumption—though gas fees remain a challenge.
👉 See how low-cost blockchains are reshaping global finance.
🔐 Security and Decentralization
While BEP20 offers performance benefits, ERC20 leads in decentralization and security.
- Ethereum relies on over 700,000 active validators globally.
- BSC uses only 21 elected validators, raising concerns about centralization and potential single points of failure.
This trade-off means BEP20 prioritizes speed and affordability, while ERC20 emphasizes trustlessness and long-term resilience—a crucial consideration for institutional investors and security-focused projects.
📈 Ecosystem Maturity and Adoption
Ethereum hosts the largest and most mature DeFi ecosystem, including top protocols like Uniswap, Aave, and MakerDAO—all built on ERC20. Its network effect makes it the preferred choice for established projects seeking credibility.
Meanwhile, BEP20 has seen explosive growth, especially in emerging markets where low fees attract retail users. Many startups choose BSC for faster iteration and lower deployment costs.
However, due to its younger age, some BEP20 projects face scrutiny regarding audits and long-term viability.
Frequently Asked Questions (FAQ)
Q: Can I transfer BEP2 tokens to an ERC20 wallet?
No. BEP2, BEP20, and ERC20 operate on separate blockchains. You cannot directly send BEP2 tokens to an ERC20-compatible wallet without using a cross-chain bridge or exchange service.
Q: Are BEP20 tokens compatible with MetaMask?
Yes. Since BEP20 is ERC20-compatible, you can add BSC network settings to MetaMask and manage BEP20 tokens seamlessly.
Q: Why do some projects launch on both ERC20 and BEP20?
Dual issuance allows projects to reach both high-security Ethereum users and cost-sensitive BSC users. Cross-chain bridges also enable liquidity sharing between ecosystems.
Q: Is BEP2 still relevant today?
BEP2 is largely legacy now. Most new projects prefer BEP20 due to smart contract support. However, Binance Exchange still uses BEP2 internally for certain trading pairs.
Q: Which is safer: ERC20 or BEP20?
ERC20 generally offers stronger security due to Ethereum’s decentralized validator network. BEP20 sacrifices some decentralization for speed and lower costs.
Q: Do I need BNB to use BEP20?
Yes. All BEP20 transactions require BNB to cover gas fees, similar to how ETH powers ERC20 transactions.
Final Verdict: Choosing the Right Standard
Each token standard serves distinct purposes:
- Choose BEP2 if you’re focused solely on fast trading via decentralized exchanges—but expect limited functionality.
- Choose BEP20 if you want low-cost access to DeFi, fast transactions, and broad wallet support—ideal for startups and retail users.
- Choose ERC20 if you prioritize security, decentralization, and integration with the world’s largest blockchain ecosystem—best for long-term investments and enterprise-grade applications.
Ultimately, the “best” standard depends on your goals: speed and affordability (BEP20) or security and maturity (ERC20). As interoperability improves through bridges and layer-2 solutions, many users will likely engage with all three across different use cases.
👉 Compare blockchain networks side-by-side and make smarter investment decisions.