In this article, we will compare the costs of creating and managing ERC20 and BEP20 tokens, including gas fees and smart contract deployment costs.
Both token standards are essential to their uses and functionalities in smart contracts and the blockchain they operate on. Basically, ERC20-based tokens are built on the Ethereum blockchain while BEP20 tokens run on the Binance smart chain.
ERC20 tokens are built out of the need to achieve a specific purpose which might be built out of the need to make payment on an online platform, this is because the ETH blockchain support’s building on its blockchain. It is basically, for developers who are looking at developing their own cryptocurrency projects. ERC20 tokens are very expensive due to the high gas fee system in the ETH blockchain.
This is a major downturn for the ETH blockchain, during its integration from the proof of work to its current consensus mechanism of proof of stake users and builders all together taught this might reduce the high level of gas fees that were been paid for transactions on the ETH blockchain.
As a very popular blockchain in the world of cryptocurrency, ETH has been able to attract top builders from various parts of work-life, these builders range from DApps builders, and NFT project builders alongside their million-dollar art collections on OpenSea, DEXS (Decentralized exchanges), DAOs, and lending protocols.
The above-listed web 3.0/ cryptocurrency projects own their ERC20 tokens, most of these tokens serve as a payment tokens, etc. Each token ERC20 token on the ETH blockchain serves its special purpose as the visions of the projects differ. Just to add everyone’s token standard like ERC20 and BEP20 has some set of rules guiding them. That of ERC20 includes;
There are costs attached to creating an ERC20 standard token when building your project on the ETH blockchain. ERC20 standard tokens are costly to manage, this is due to the high rate of gas fees that are needed in carrying out transactions on the ETH ecosystem. Developers who lack funding for his/her project might find it very difficult to manage their projects.
Aside from the normal gas fee transactions as a developer, you might pay a higher rate of a gas fee to execute or deploy a smart contract for your project. The major difference between the ERC20 and BEP20 token standards is that The BEP20 token stand has a cheaper gas fee rate, while the ERC20 token has an expensive gas fee rate.
The BEP20 token standard is very cheap to manage, while the ERC20 is on a higher rate of maintenance.
The BEP20 token standard has a faster speed of transactions which are executed in 3 seconds, while the ERC20 tokens take longer than the BEP20 tokens. When developing a project or token on the BSC blockchain you will discover that the BEP20 token standard has more requirement that needs to be fulfilled than the ERC20 token standard.
In other words, the BEP20 token standard has more requirements than the REC20 token standard… Developers should take note of this. On the other hand, the ERC20 token standard has a very high-security level of transaction scrutinizing than the BEP20 token standard.
There are not many differences with respect to ERC20 and BEP20 token standards, this is because they were built to solve the same issues using different approaches and operating systems. The BEP20 token standard was built by the Binance company owners of the Binance exchange and has also become very popular as well.
Over time developers have transited from the ERC20 token stand to the BEP20 token standard, this is because of the high rate of gas fees on the ETH blockchain and the slow transaction time the ETH blockchain takes to process and execute transactions. The high gas fee rate on the ETH ecosystem was the problem Binance smart chain has solved with its blockchain technological skills. BEP20 token executes transactions at a block-time of 3 seconds, BEP20 tokens standard charges a cheaper transaction fee (gas fee), and it is also cheaper to maintain and manage a project built on the BSC blockchain.
It is very vital to note that every feature available on the ERC20 token standard is present on the BEP20 token standard, Aside from the longer transaction block-time ERC20 token takes to process and execute transactions and the high gas fee charges that might be sometimes higher than the initial transaction.
However, the BEP20 token standard has more requirements for developing a token with its standard than that of ERC20 which has lesser requirements for development. Examples of BEP20 token standards are PancakeSwap, the RoboFi Vics token, Biswap, etc. The BEP20 token standard has a “get owner feature” this feature shows the authenticity that a developer is the owner of a given project or token on the BSC blockchain.
The BEP20 token standard is cheaper to maintain and manage than the ERC20 token standard. This is due to the downtimes in the ETH blockchain, and there have been projects leaving the ETH ecosystem due to this downtime because the ERC20 token standard is expensive to manage. There has not been any new innovation in the ETH ecosystem for a long time, especially after the integration from PoW to PoS. However, if there are any new innovations in the ETH ecosystem it hasn’t been heard or spoken of. In summary, token standards are rules that a developer has to abide by when building on a given blockchain in order for such tokens to be listed on the blockchain.
Before building a token or project it is essential you understand the difference between the ERC20, BEP20, and, TRC20 token standards. This will help you know which of these standards will be suitable for your project/token and will be cheaper to manage, how fast is the transaction block time, what new innovation is coming into a such blockchain, are people interested in exploring the blockchain. The above-listed questions should help you make the right decision when planning on building on any of these blockchains. Carry out a due diligence and enjoy the result, for the records ERC20 token standard are more secure than BEP20 token standard.
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VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.
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