BEP-20

BEP-20 is a technical standard on the Binance Smart Chain (BSC) that specifies how tokens can be created, issued, and transferred on the blockchain. It is similar in function to the ERC-20 standard on the Ethereum blockchain. BEP-20 tokens are fungible, meaning that each token is identical and can be freely exchanged for any other token of the same type on a one-to-one basis. This fungibility makes BEP-20 tokens suitable for use as currencies, governance tokens, utility tokens, and other applications where interchangeability is desirable.

The BEP-20 standard defines a common interface — a set of required functions and events — that every compliant token smart contract must implement. This includes functions for transferring tokens, checking balances, and allowing third-party contracts to spend tokens on behalf of an owner, the last of which is essential for compatibility with decentralized exchanges and DeFi protocols. Because all BEP-20 tokens share this common interface, wallets, exchanges, and applications can interact with any BEP-20 token using the same code, dramatically reducing the complexity of integrating new tokens into existing infrastructure.

For traders, BEP-20 tokens are the foundation of the BSC DeFi ecosystem, including decentralized exchanges like PancakeSwap, lending protocols, yield farming platforms, and more. Many ERC-20 tokens from Ethereum have BSC equivalents in the form of BEP-20 tokens, often made available through the Binance Bridge, which locks tokens on one chain and mints corresponding representations on the other. Understanding the BEP-20 standard helps traders navigate the BSC ecosystem, evaluate new token projects, and understand the technical underpinnings of the assets they trade.