BEP-20
BEP-20 is a token standard that sets rules for tokens on the BNB Smart Chain. These rules help tokens on this network work consistently.
What is BEP-20?
A token standard is a set of rules for a token. For example, BEP-20 defines how tokens are sent, how many exist, and how balances are checked.
The BNB Smart Chain is the blockchain these tokens run on. A blockchain is a digital network that records transactions. Because they follow the same rules, crypto wallets, apps, and exchanges can more easily recognize and use BEP-20 tokens.
BEP-20 is technically similar to ERC-20, the well-known token standard for Ethereum. But they’re different networks: a BEP-20 token doesn’t automatically work on Ethereum. You need BNB to pay transaction fees on the BNB Smart Chain, not necessarily the token you’re sending.
An example of BEP-20
Imagine sending a BEP-20 token from your crypto wallet to someone else. The standard lets the wallet check your balance and send the tokens to the correct wallet address.
The recipient can then use the same token in an app or trade it on an exchange that supports this network. This works because those services follow the same BEP-20 rules.
Why is BEP-20 important in crypto?
BEP-20 often comes up in news about new tokens, apps, and trading on the BNB Smart Chain. The standard makes it easier for developers to create a token that works with existing wallets and apps.
That simplicity also has a downside. Anyone can launch a new token relatively easily. So a BEP-20 label doesn’t automatically mean a token is trustworthy or valuable. Scams and rug pulls also exist, where creators try to take advantage of users.
If you see “BEP-20” when making a deposit or withdrawal, it refers to the BNB Smart Chain network. Always choose the same network supported by the receiving wallet or exchange. Choosing the wrong network can cause problems.
