BEP-20
A token standard on the BNB Smart Chain (BSC), structurally compatible with ERC-20 but with lower transaction fees.
How it works
BEP-20 is the token standard on BNB Chain, the network created by the Binance exchange. Like its relatives it defines a mandatory set of contract functions so that every wallet and application handles any token the same way.
The standard is fully compatible with ERC-20 at the code level: an application written for Ethereum ports here with almost no changes. That was deliberate — the network launched in 2020 as a cheaper alternative, and easy migration was its main argument.
The price of that cheapness is in the network's design. Blocks are confirmed by a few dozen validators rather than thousands of independent nodes, so decisions come faster but the circle making them is markedly narrower.
What to watch for
- A low barrier cuts both waysIssuing a token here costs pennies, so the network is full of short-lived projects. A token existing on the network says nothing about its quality.
- The same address across networksOne wallet has an identical address on BNB Chain and Ethereum. That is convenient and dangerous at once: sending to the wrong network is easy, and the funds land on the right address in the wrong network.
- Fees are paid in BNBWithout a small reserve of the native coin you cannot move tokens, as on other networks.
- Check the contract address, not the nameA token's name and symbol are not protected by anything. Cloning a popular coin under the same ticker is the most common scheme on this network.
Telling networks apart on withdrawal
When withdrawing from an exchange the network is a separate field, and the exchange usually shows the fee for each. A mistake at this step is the costliest of everyday errors: funds go to a network where the recipient does not control the address, and recovery depends entirely on support agreeing to help.
A simple rule: the recipient chooses the network, not the sender. Before withdrawing, ask the other side for both the address and the network name, and check both fields.