BEP20 (Binance)

Features of the BEP20 token standard

This feature is coming soon to the FlexSmart platform! Until then, you can always click here to talk with a Smart Contract Creation Expert who can help with creation and implementation of BEP20 tokens.

The Binance corporation was largely inspired from three technologies; The Bitcoin and Ethereum Blockchains, and conventional high-frequency trading. All are relevant to understanding the BEP20 token standard.

Ethereum’s groundbreaking ERC20 spec set the modern standard for custom token generation, and most smart contracts are built on this protocol, including BEP20. However, the founder of Binance was originally a software developer for high-frequency trading operations. This is a branch of financial speculation that takes advantage of small movements in currency or commodity value by employing extremely low-latency networks and algorithmic trade orders that are executed far faster than human beings can track.

To facilitate this kind of performance in the new blockchain-enabled economy, Binance introduced its Lightning Network, a “layer two” technology which uses off-chain “channels” to allow groups organized on the basis of a need for frequent internal movements of money to execute multiple (usually many) transactions on private servers and networks, then reconcile the results to a blockchain on a periodic basis. The technology was layered on Bitcoin’s network first, but is now compatible with other blockchains as well.

This emphasis on performance was a fundamental driver in the company’s technological buildout. Unlike Ethereum, The Binance network is organized as two different blockchains; one for executing fast currency transactions such as are required at retail operations, and another for smart contract programming, which is generally not quite so time-sensitive. This keeps the currency-only mining nodes much lighter and more responsive, but introduces one serious complication; the regular requirement for transfers of BNB (Binance’s native coin) between the two chains.

As such, the BEP standard has several significant distinctions from the original ERC20 spec. While the list of methods is the same as the Ethereum protocol (as it must be to ensure compatibility with and migration from the competing chain), several functions have been made mandatory in order to enable the consistent movement of BNB across the two blockchains the company operates.

1. symbol:

This was an optional method in ERC, but it must be implemented in BEP20. Without it, there would be no way to correlate the identity of a token between the two chains.

2. decimals:

This method is also optional in ERC20, but a strict requirement of the Binance implementation of the standard as currency representations can be different on their chains.

3. totalSupply:

It should be obvious why this is mandatory in BEP20; the total supply of tokens must be amalgamated from the transactions of both blockchains.

4. getOwner:

This function is an extended method of the ERC20 spec, essential to establishing an unambiguous correlation between the identities of parties with transactions scheduled on both of its chains.

Additional Notes

This hybrid strategy has paid off handsomely. Binance was able to lure many users away from Ethereum to its own platform due to the basic compatibility of their standards, which entails only minor changes to existing smart code contracts. Further, their proof-of-stake/proof-of-authority consensus mechanism is far more environmentally friendly than Ethereum’s and much faster to operate. As such, transaction fees are vastly lower on their network, and Binance is now the most active cryptocurrency exchange in the world.

Tip: Not sure where to start? In the near future, you will be able to use FlexSmart's platform to generate your own BEP20 token. Until then, click here to talk with a Smart Contract Creation Expert who can assist you with BEP20 token creation and implementation.