Difference Between Binance Chain and BNB Smart Chain

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BEP2 vs. BEP20 - Difference Between Binance Chain and BNB Smart Chain.


BEP2 and BEP20 are two different token standards used in the Binance Chain and Binance Smart Chain networks. The main difference is that BEP2 is a protocol used for native transactions on the Binance Chain. At the same time, BEP20 is a protocol used for smart contract transactions on the Binance Smart Chain. As a result, BEP2 is more suited for simple transfers of tokens and assets, while BEP20 supports more complex features such as token staking, decentralized exchanges, and NFTs. Both protocols offer high levels of security and scalability, but each has advantages and disadvantages.

Ultimately, both BEP2 and BEP20 tokens offer reliable and secure solutions to transfer digital assets. Still, depending on your needs, one may be more suitable than the other.

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What Is BEP2?
BEP2 is the token standard used by the Binance Chain platform. The standard provides specifications for issuing tokens on this blockchain. Many popular wallets, such as Ledger, support transactions with BEP2 tokens. If you want to make transactions with BEP2 tokens, you will need to use BNB coins to pay for gas, i.e., transaction fees.

One of the advantages of BEP2 is the convenience of trading between different cryptocurrencies in a decentralized exchange format. However, BEP2 does not support smart contracts, which many tokens and dApps rely on for their functionality.

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Binance Chain
It was launched in April 2020 and developed by Binance to use its decentralized exchange to trade anonymously and with lower commissions.

The goal of Binance Chain was to compete with the rest of the exchanges in the world, to create a network where they could lower transaction costs and offer lower trading fees to absorb the market.

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What Is BEP20?
BEP20 is an extension of ERC20, the most popular token standard in the Ethereum blockchain. Similarly, BEP20 is the standard token in the Binance Smart Chain platform. This token defines who can use it, spend it, how, and other related details. BEP20 is compatible with BEP2 and ERC20 because they have much in common.

This token was created for the Binance Smart Chain as a technical specification. The main motto of the launch of this token was to make it easier for developers to develop similar tokens. These tokens can represent a company's stock, the amount held in a bank account, or something similar. Binance Coin (BNB) makes it easy to transfer these tokens.

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BEP2 vs. BEP20 - Difference Between Binance Chain and BNB Smart Chain

by Pavel Rabtsevich

18 Nov 2022

7 min
BEP2 vs. BEP20 - Difference Between Binance Chain and BNB Smart Chain
TABLE OF CONTENTS

BEP2 and BEP20 are two different token standards used in the Binance Chain and Binance Smart Chain networks. The main difference is that BEP2 is a protocol used for native transactions on the Binance Chain. At the same time, BEP20 is a protocol used for smart contract transactions on the Binance Smart Chain. As a result, BEP2 is more suited for simple transfers of tokens and assets, while BEP20 supports more complex features such as token staking, decentralized exchanges, and NFTs. Both protocols offer high levels of security and scalability, but each has advantages and disadvantages.

Ultimately, both BEP2 and BEP20 tokens offer reliable and secure solutions to transfer digital assets. Still, depending on your needs, one may be more suitable than the other.

What Is BEP2?
BEP2 is the token standard used by the Binance Chain platform. The standard provides specifications for issuing tokens on this blockchain. Many popular wallets, such as Ledger, support transactions with BEP2 tokens. If you want to make transactions with BEP2 tokens, you will need to use BNB coins to pay for gas, i.e., transaction fees.

One of the advantages of BEP2 is the convenience of trading between different cryptocurrencies in a decentralized exchange format. However, BEP2 does not support smart contracts, which many tokens and dApps rely on for their functionality.

Binance Chain
It was launched in April 2020 and developed by Binance to use its decentralized exchange to trade anonymously and with lower commissions.

The goal of Binance Chain was to compete with the rest of the exchanges in the world, to create a network where they could lower transaction costs and offer lower trading fees to absorb the market.

What Is BEP20?
BEP20 is an extension of ERC20, the most popular token standard in the Ethereum blockchain. Similarly, BEP20 is the standard token in the Binance Smart Chain platform. This token defines who can use it, spend it, how, and other related details. BEP20 is compatible with BEP2 and ERC20 because they have much in common.

This token was created for the Binance Smart Chain as a technical specification. The main motto of the launch of this token was to make it easier for developers to develop similar tokens. These tokens can represent a company's stock, the amount held in a bank account, or something similar. Binance Coin (BNB) makes it easy to transfer these tokens.

Binance Smart Chain
Binance Smart Chain (BSC) is a blockchain that runs parallel with the Binance Chain. The world's largest cryptocurrency exchange operates Binance Smart Chain. It combines two important advantages:

It solves the problem of expensive transactions;
It allows users to use Ethereum applications.
Thus, developers can use Ethereum code when working with Binance Smart Chain. BSC works in parallel with the native Binance Chain (BC) network. Since developers can create dApps (decentralized applications), users can manage their digital assets across the chain.

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Why Is Binance Smart Chain Better Than Any Other Alternatives?
Binance Smart Chain could convince so many users in such a short time because its benefits are enormous.

Independence: Binance Smart Chain is an independent blockchain that operates separately from Binance Chain.
High speed: BSC is characterized by high-speed processes and takes advantage of the Binance Chain.
Low Transaction Costs: Especially compared to Ethereum, BSC is much cheaper. This makes Binance Smart Chain a useful option for developers and users.
Compatibility: Binance Smart Chain is compatible with the Ethereum virtual machine, and the corresponding smart contracts are also compatible with BSC. This also makes it easier for programmers to transition.

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