What is BEP-2?

BEP-2 represents an important milestone in the development of a major blockchain ecosystem, serving as the first token standard for this platform. This article examines the technical features of BEP-2, its role in blockchain development, and comparisons with other token standards.

What is BEP-2?

BEP-2 is a technical standard for issuing and implementing tokens on the first blockchain of a leading cryptocurrency exchange, known as BNB Beacon Chain. This standard contains a set of rules and specifications that all tokens using this technology must follow.

The creation of BEP-2 was inspired by the success of Ethereum's ERC-20 standard. Similar to how ERC-20 provided developers with a template for easily creating tokens on the Ethereum blockchain, BEP-2 was designed to provide analogous functionality on the BNB Beacon Chain network. This allowed users without deep technical knowledge to create their own cryptocurrency tokens, significantly lowering the barrier to entry in the crypto industry.

What is BNB Beacon Chain?

BNB Beacon Chain is the first blockchain of a major digital asset exchange platform, launched in 2017. It serves as the technological foundation for the BEP-2 token standard and is one of two main blockchains in this ecosystem.

The technical architecture of BNB Beacon Chain is based on a combination of two consensus mechanisms: DPoS (Delegated Proof of Stake) and pBFT (Practical Byzantine Fault Tolerance). This combination ensures efficient block production and represents an energy-efficient alternative to the Proof-of-Work protocol used by Bitcoin.

Many existing tokens have migrated to the BNB Beacon Chain network. A notable example is BTCB - a tokenized version of Bitcoin in the BEP-2 standard, which is pegged to the price of original BTC but operates on this blockchain. This process, known as tokenization, allows for the creation of "wrapped" assets that can be used on decentralized trading platforms.

What is BEP-20?

Despite the functionality of BNB Beacon Chain, the platform recognized the limitations of this blockchain for developing decentralized finance (DeFi). In September 2020, a second blockchain was launched - Binance Smart Chain (BSC), with a new token standard called BEP-20.

BEP-20 was specifically designed to support smart contracts and decentralized applications (dApps). This standard remains actively used on BSC and is the primary standard for project development in this ecosystem.

What is the Difference Between BEP-2 and BEP-20?

There are several key differences between the BEP-2 and BEP-20 standards, beyond the simple fact that they operate on different blockchains.

First, smart contract support: BEP-2 does not support batch data transmission and smart contracts, while BEP-20 was specifically created to support smart contracts in this blockchain ecosystem.

Second, the token address format differs: BEP-2 addresses begin with the prefix "bnb", while BEP-20 addresses start with "0x", similar to ERC-20 addresses. This makes BEP-20 tokens compatible with Ethereum tokens and the Ethereum Virtual Machine (EVM).

Third, the consensus mechanisms differ: BEP-2 operates on a Proof-of-Work basis, while BEP-20 uses the more efficient Proof-of-Stake mechanism. BEP-2 charges transaction fees, whereas BEP-20 does not have such fees. Finally, BEP-2 has limited scalability, while BEP-20 offers significantly greater flexibility and scalability.

How Do BNB Beacon Chain and Binance Smart Chain Differ?

BNB Beacon Chain (later renamed from its original name) was launched to create a decentralized trading platform, providing anonymous trading and lower fees compared to centralized exchanges. Over time, this network evolved into a decentralized, community-governed blockchain ecosystem.

Binance Smart Chain was launched in 2020 in response to the rapid growth of decentralized finance (DeFi). When DeFi projects began actively developing, predominantly on Ethereum, it became clear that the original chain was not suitable for this sector due to limited scalability.

BSC was specifically created to support smart contracts and DeFi applications, offering a more scalable token standard and significantly lower transaction fees compared to Ethereum. These advantages led to rapid growth of BSC, transforming it into one of Ethereum's largest competitors in the DeFi space.

Comparing BEP-2 and ERC-20

BEP-2 and ERC-20 represent token standards for different blockchain ecosystems. BEP-2 is a standard for creating and deploying tokens on the BNB Beacon Chain network, while ERC-20 is a technical standard for creating and implementing smart contracts on the Ethereum network.

Although BEP-2 was inspired by the ERC-20 concept, there are significant differences between them. A closer "twin" to ERC-20 is BEP-20, despite the latter being created years later. Both standards serve the same purpose and have minimal differences, except that BEP-20 exists in one ecosystem while ERC-20 is in Ethereum's native ecosystem.

With the launch of cross-chain bridges, these standards have become interoperable, although conversion is still necessary for their exchange. ERC-20 tokens are fully compatible only with the Ethereum ecosystem and cannot be deployed on another network without transitioning to its token standard.

Conclusion

BEP-2, being the first token standard of a major blockchain platform, played an important role in the development of the company's blockchain ecosystem. However, over time it became evident that this standard is less functional and useful compared to BEP-20. As a result, relatively few BEP-2 tokens exist, and not all cryptocurrency wallets support this standard.

Projects based on BEP-2 typically lack the wide range of applications that BSC projects possess, making them less common in the modern crypto industry. Nevertheless, BEP-2 remains a valid standard and continues to be useful for users wishing to interact with decentralized trading platforms.

Despite its limitations, BEP-2 represents an important stage in the evolution of blockchain technologies and serves as a foundation for understanding the development of blockchain standards in the cryptocurrency industry.

FAQ

Is BEP2 still available?

No, BEP2 is no longer available. It was discontinued on June 14, 2024, and all related services have ceased.

Is BEP2 the same as BEP20?

No, BEP2 and BEP20 are different token standards. BEP2 is for Binance Chain, while BEP20 is for BNB Smart Chain and is compatible with ERC-20.

What is BEP2?

BEP2 is a token standard for BNB Chain, defining rules for tokens. It's similar to Ethereum's ERC-20, used for smart contracts and DeFi applications on Binance's blockchain network.

Can I send BEP2 to BEP20?

Yes, you can send BEP2 to BEP20. Select the BEP20 network when transferring and ensure the receiving address is correct. Both BEP2 and BEP20 BNB are supported for transfers.