Understanding BEP-2 (Binance Chain Tokenization Standard)
BEP-2, short for Binance Chain Evolution Proposal 2, is a technical standard developed by Binance Chain for creating and utilizing tokens on its blockchain.
It provides a set of rules and technical specifications that tokens must adhere to to function within the Binance Chain ecosystem.
A similar token standard in the Ethereum blockchain is ERC-20.
Versatility, Integration, and Consensus Algorithms.
While the BEP-2 standard defines the fundamental features of tokens on Binance Chain, individual tokens can have different implementations depending on their specific use cases.
BEP-2 tokens can represent a wide range of digital assets and tradable goods.
The standard ensures smooth integration between these tokens and the surrounding ecosystem.
Notable examples of BEP-2 tokens include stablecoins like BUSD and BEP-2 pegged Bitcoin and various multichain projects that leverage the benefits of BEP-2.
Binance Chain, which hosts BEP-2 tokens, utilizes the Tendermint BFT consensus and delegated proof-of-stake (DPoS) with a dedicated application layer.
These consensus algorithms have proven to be fast and reliable alternatives to proof-of-work.
Each BEP-2 token possesses the following properties:
- Source Address: The source address represents the owner of the issued token.
- Token Name: Token Name refers to the long name of the token, such as “MyToken.”
- Symbol: The symbol is the identifier for the newly issued token.
- Total Supply: Total supply denotes the overall number of issued tokens.
- Mintable: Mintable indicates whether the token can be minted in the future, thereby increasing its total supply.
You can refer to the project documentation for detailed information on the Binance Chain architecture.
The Native Asset of Binance Chain
The native asset of Binance Chain is BNB, which is used to pay for fees, similar to gas in other blockchain networks.
When transferring BEP-2 tokens, a small amount of BNB is required in the wallet to incentivize validators to include the transactions in the blockchain, as they receive BNB as a fee for their efforts.
Binance Chain is optimized for high-speed trading, while its sister chain, Binance Smart Chain (BSC), is designed for running smart contracts and decentralized applications without congesting the original chain.
Both chains are complementary within the ecosystem but are functionally independent.
Significant emphasis has been placed on enabling easy swapping of BEP-2 tokens for their BEP-20 equivalents to ensure cross-chain compatibility.
BEP-2 tokens can be traded on Binance DEX, a decentralized exchange operating on top of the Binance Chain.