This article will help you understand the difference between BEP2, BEP20, and ERC20 tokens and how Binance wants to own its own token, blockchain, and smart contracts.
We will go over some technical terms and abbreviations before looking at an example of withdrawing and depositing funds.
What is Binance Chain?
The Binance Chain project was launched in April 2019 and allows anyone to create, use, and trade digital assets directly on the blockchain. The native token of Binance Chain is BNB.
In the same way as Ethereum gas, Binance Coin (BNB) is created from Binance Chain and can be used to pay for fees or to transfer BEP-20 tokens. Like most digital currencies, BEP-2 coins can be held in crypto wallets. Many hardware wallets, including Trezor Model T, Ledger Nano X, and Ledger Nano S, support it. Alternatively, you can earn passive income if you store your funds in a hardware wallet.
How does Binance Smart Chain work?
On January 25th, Binance Smart Chain went live on mainnet, enabling smart contracts and BNB stakes to be developed on a parallel chain to Binance Chain. Organizations and individuals interested in participating can collect BNB stakes by signing up as validators of this new chain.
What is BEP2?
Binance Chain token BEP2 is a Binance Chain token standard, whereas Binance Smart Chain token BEP20 is a Binance Smart Chain token standard.
What is BEP20?
A Binance Smart Chain token (BSC) uses a standard called BEP-20, which is also the same smart contract-compatible protocol ERC-20 used by Ethereum. Tokens must meet certain fundamental capabilities, such as transferring funds, returning balances, and verifying ownership.
BEP20 is a token standard designed for developers that allows anyone to create tokens. With Ethereum gas fees at an all-time high, a DeFi platform that supports smart contracts is needed.
For token management, BEP-20 has a standard set of directives or rules. The BEP-20 coin is also interoperable with ERC-20 and BEP-2 tokens.
What You Need to Know
- Your destination address must be entered correctly first.
- You should not use an ERC20 address in place of a BEP20 withdrawal address.
- Additionally, you will lose money if you do a transaction of this kind.
- It is possible to transfer between BEP2 and BEP20.
- Last but not least, any funds on BEP20 (a Decentralized Exchange) will reflect when you access the Pancake swap.
BEP2 vs. BEP20
Both the BEP-2 and BEP-20 tokens (BNB) are powered by Binance Coin, due to the fact that both of these tokens are built with a “dual chain architecture,” in which the Binance Chain complements the Binance Smart Chain.
A BEP2 address that begins with bnb is appropriate for multi-asset accounts. A BEP20 address is appropriate for Smart Chain coins. BEP2 addresses begin with bnb, while BEP20 addresses begin with 0x, as in Ethereum addresses.
For different blockchains, these are the token standards are
- BEP-2 Binance Chain
- BEP-20 Binance Smart Chain
How to transfer or deposit funds at Binance
The BEP2 tokens are only available for Binance Chain Network; Binance users should transfer their bnb first to Binance Chain Network and then to your Metamask-based Smart Chain Network.
Here are wallets
- Binance Chain Wallet
- 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: Set up Binance Smart Chain on your Metamask. You can read how to do it here
Bnb prefix means it is on the BEP2/ Binance Chain network; 0x means it is on the BEP20/ Binance Smart chain.
In order to send to Bep20, you need to switch the network from Ethereum to the newly configured Smart Chain; in order to trade tokens on Ethereum, you need to switch the network to Ethereum.
Step 5: Binance users can now deposit and withdraw funds from Metamask and vice versa using these addresses.
Withdraw funds from your Binance account?
Navigate to Binance > Login > Wallet
You can withdraw digital coins by selecting the digital coin from the drop-down menu; you must enter the correct address and network, and you must click withdraw.
After you complete the transaction, the funds will be transferred to the address you provided.
Deposit funds in your Binance account?
BEP2 and BEP20 can also be used as deposit methods. All you have to do is choose the appropriate coin and network.
Comparison of BEP2 and BEP20
You should know where your money is going. Check twice before making any transaction. Hence, BEP2 and BEP20 provide a very good alternative to save your gas fees.
To write this article was taken reference from here coincodecap.com
