What Is BEP20?

BEP20 is a technical standard for tokens created on the Binance Smart Chain (BSC) blockchain. This standard enables the development of various types of digital tokens, including crypto assets, utility tokens, and security tokens.

Compared to Ethereum's ERC-20 standard, BEP20 offers high flexibility and compatibility, making it easier to integrate with existing applications and services in the Ethereum ecosystem. This is a characteristic that differentiates BEP20 from other token standards.

How BEP20 works primarily involves the creation of a token that can interact with smart contracts and be accepted by compatible digital wallets. This standard facilitates safe and efficient transactions on the Binance Smart Chain, supporting various functions such as transfer, receipt, and checking token balances.

PancakeSwap is one of the well-known projects that uses BEP20 tokens. The project operates a decentralized exchange (DEX) on the Binance Smart Chain, where users can trade, provide liquidity, and participate in token farming activities.