Is Bep20 the same as ERC20?

In the world of blockchain and cryptocurrencies, token standards play a crucial role in defining the rules and features of a digital asset. Two popular token standards that have gained significant traction in recent years are BEP20 and ERC20. While both these standards have a lot in common, there are also some key differences between them that make them unique. In this article, we’ll take a closer look at BEP20 and ERC20 to help you understand whether they are the same or not.

Is Bep20 the same as ERC20?

No, BEP20 is not the same as ERC20. Though they have similarities in terms of smart contract development and DApps building protocols, they are entirely different from each other. This difference is in terms of chains. Bep20 token standard functions on the Balance smart chain BSC, while ERC20 token standard runs on the ethereum chain, this leads us to a more reason why they are very different… ERC20 tokens are very slow in processing transactions, this is due to the congestion on the ETH blockchain that leads to the delay in processing transactions and as such involves a higher gas fees in order to execute transactions faster in its own time stamping block. 

Before the transition of the ETH chain to the proof of work consensus mechanism it functioned with Bitcoin consensus mechanism being the proof of work. After the final transition of the ether network to the POS consensus mechanism it began facing littles drawbacks as stated above. Unlike the BSC chain that has a faster processing transaction chain with low gas fee cost and provides developers options to build, deploy and verify their smart contracts on its chain. The BSC chain uses the proof of staked authority consensus mechanism POSA.

Comparison of BEP-20 compatibility with different wallets and platforms

BEP20 is a popular chain that has gained traction and use cases since after its development by the Binance team of developers. The BEP20 token standard is popular not only because it is widely used but because it is integrated in every DApps, Defi staking, lending, yield provider, and borrowing protocols. It has the highest on-chain trading volume compared to its competitor being the ERC20 token standard even though it has got its own advantage over the BEP20 token standard.

So here is the deal breaker, every developer who builds on the BSC chain must integrate the token standard into its DApps or Defi protocol. This is beyond just tech and building tech infrastructures, It is a marketing strategy used by the Binance company. The end of every product no matter what its feature maybe is the users.The Binance team of developers has made it much more simple for any decentralized application and Defi protocols and DAOs to integrate the BEP20 token standard into their blockchain infrastructure. With such a strategy in place the BEP20 token standard finds itself compatible with any DApps building on the BSC network.

BEP20 vs. ERC20 – What’s the Difference?

There are huge differences between these token standards, and those differences are listed below.

BEP20. The BEP20 token standard is fast in processing transactions.

The BEP20 token standard is built on the BSC network, which makes it entirely different from the ERC20 token standard.

BEP20 token standard offers cheap or low gas fees of transactions.

In summary, tokens built on the BEP20 token standard are implemented in the on-chain and the BSC network making it have fast and low gas fees during transactions.

ERC20. Unlike the BEP20 token, the ERC20 token standard has high gas fees during transactions.

The ERC20 token standard is very slow in processing transactions, due to the congestion on its network, and this is in respect to one layer processing all on-chain activities, etc. The ERC20 has no such advantage of operating with the POSA consensus mechanism as the BEP20 token standard.

Similarities between BEP20 and ERC20

The BEP20 token standard was a prototype of the ERC20 token standard, and was built out of the need to solve the drawbacks on the ETH network. It was created as an extension of the ERC20 token standard. This is due to its ability of the BEP20 chain to write and rewrite smart contracts through the ETH programming language known as solidity.

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