BEP-20 vs ERC-20: Are Binance Ecosystem Token Standards Really Different?

Question

Do you remember how tough it was for early crypto creators? You either had to write blockchain code from scratch or just fork Bitcoin. It wasn’t until Ethereum appeared that creating a new token became “not so hard.” When the ERC-20 standard came out, it instantly became the “template for token standards” in the crypto space.

Later, Binance didn’t want to be left behind and launched its own chain—BNB Smart Chain (BSC), with its corresponding token standard: BEP-20. So, what’s the real relationship between these two standards? Which one is better?

What Exactly Is BEP-20

Simply put: BEP-20 is the twin brother of ERC-20 in the Binance ecosystem.

Both are standards for developers to quickly launch tokens, supporting minting, burning, blacklists, pausing transactions, and so on. The key point—they’re interoperable. Binance created the Binance Bridge, allowing the two chains to “shake hands” directly: ERC-20 tokens sent to BSC become BEP-20, and vice versa, with no fees.

Why Did Binance Create BEP-20

When BSC launched in 2020, DeFi was still in its early days. Binance used BEP-20 to build an entire ecosystem—PancakeSwap, Autofarm, and other DEXs all run on it. Nowadays, some people compare BSC and Ethereum as if it’s “BEP-20 vs ERC-20.” But honestly, that “competition” is outdated—Web3 is about letting each chain do what it does best.

Don’t Confuse BEP-20 and BEP-2

Binance has two chains, so two standards:

BEP-2: Runs on the BNB Beacon Chain (also called Binance Chain), Binance’s first chain, mainly for governance and asset management
BEP-20: Runs on BSC, designed for DeFi and DApps

Both chains use BNB as their native asset and can swap tokens between each other, but their purposes are very different. Want to play with DeFi? Use BSC and BEP-20. Want to use the Binance DEX? You’ll need BEP-2.

BNB Chain Fusion: Merging the Two Chains

In January 2024, Binance announced a big move—merging the BEP-2 and BEP-20 chains into one. By April 2024, users needed to convert their BEP-2 tokens to BEP-20 themselves. Binance said this would improve security and transaction efficiency.

In a Nutshell

Aside from running on different chains, there’s no essential difference between BEP-20 and ERC-20—they’re both standard tools for developers to launch tokens quickly. And since they’re interoperable, it’s more about complementing each other than competing. The explosion of the Binance ecosystem proves that as long as the standards are easy to use and the ecosystem is active, multiple chains coexisting is actually good for the whole industry.