BEP20 is a token standard that allows anyone to deploy fungible digital currencies or tokens on Binance Smart Chain. It is created with the intention of intertwining with Ethereum‘s ERC-20 standard.
BEP-20 is a blueprint for how a token can be used, who can spend it, and how it should be used in general. The BEP-20 standard was derived from and is fully compatible with the ERC-20 standard, and the BEP-20 standard’s functions are modifications of the ERC-20 standard’s code.
These changes were made in order to improve the protocol while also increasing its speed and lowering transaction costs. In fact, BEP-20 was created with the intention of giving a versatile platform via which developers may launch various tokens. Stablecoins, for example, might be used to represent anything from company shares to dollars held in a bank vault.
Binance introduced Smart Chain and BEP-20 to give a low-cost, high-speed alternative to the booming decentralised finance (DeFi) market, as well as providing a wide range of decentralised applications (DApps).