According to a report from TokenInsight, OKX exchange has increased its competition very strongly recently, the market share of OKX exchange has increased from 1.9% to 15.9% in Q2 2023, ranking in the top 2 position only behind Binance with more than 50% market share.
This proves that users are tending to switch to using OKX exchange quite a lot, in addition to the “Statement” trend, which has been prestigious monthly by OKX, which has caused great sympathy from users.
——
What is BEP-2?
BEP-2 is a technical standard for issuing and deploying tokens on the native blockchain of Binance. It contains a set of rules that tokens using this standard must follow in order to function.
Binance Chain was initially launched as an exchange response to Ethereum and ERC-20. ERC-20 itself is a token model derived from the Ethereum blockchain. Ethereum invented the concept of creating a model or blueprint used to generate tokens. Before Ethereum, everyone had to build their blockchain and crypto token from scratch.
Ethereum’s ERC-20 comes as a template, allowing users to launch new tokens with ease. Nowadays, even people without much technical experience can do it. The fact that there are thousands of cryptocurrencies proves it. BEP-2 comes as Binance tries to offer something similar on BNB Beacon Chain
What is Binance Chain (Binance Chain)?
Binance Chain is the native blockchain of the digital asset exchange Binance. It was launched in 2017 and is the technology behind BEP-2 — one of Binance’s two cryptocurrency standards. Binance Chain uses a combination of DPoS and pBFT technology. This combination has served block mining well, and these two consensus algorithms combine and provide a great alternative to the energy-intensive Proof-of-Work protocol, used by Bitcoin and formerly Ethereum.
Some tokens have migrated into the Binance Chain network. Some have converted completely, while others have only partially sent their supply to Binance Chain. An example of this is Bitcoin itself which created its own version of BEP-2 which is now known as BTCB, and it is a Bitcoin-pegged token on the Binance network. That means it still has the same price as BTC but is now interoperable on a different blockchain. This process is called tokenization (roughly translated as “coding”) and creates late-spawned versions of assets.
With BTCB, users can purchase other tokens that run on Binance Chain through the Binance DEX, the platform’s own decentralized exchange.
Despite its features, Binance Chain is considered unsuitable for decentralized finance (DeFi). This is why the exchange has launched a new blockchain — Binance Smart Chain — with a new token standard. This new standard was named BEP-20 and it is still used on the BSC today.
What is the difference between BEP-2 and BEP-20?
Aside from the fact that BEP-2 and BEP-20 run on different blockchains, they differ greatly. A good example of this involves smart contract support. BEP-2 does not support batch transfer. Meanwhile, BEP-20 is specifically designed to support smart contracts in the Binance ecosystem.
Both also differ in token addresses. BEP-2 token addresses start with “bnb”, while BEP-20 addresses start with “0x”, just like ERC-20 addresses. For this reason, the BEP-20 token is compatible with the Ethereum token and the EVM (Ethereum Virtual Machine).
It is also important to note that the consensus mechanisms on which the two token standards are based are different. BEP-2 runs on Proof-of-Work, while BEP-20 uses Proof-of-Stake Authority. BEP-2 also comes with transaction fees, while BEP-20 has no transaction fees. Finally, the BEP-2 has limited support for scalability, while the BEP-20 is a lot more flexible.
What is the difference between Binance Chain and Binance Smart Chain?
Initially, Binance launched Binance Chain — later renamed BNB Beacon Chain — to run its DEX. Additionally, Binance has sought to offer anonymous trading and lower commissions, which are not offered on its CEX. Ultimately, BNB Chain has become a decentralized, community-driven and permissionless blockchain ecosystem.
- source: https://marginatm.com/
Binance Smart Chain, or BSC, was launched in 2020. After the explosion of decentralized finance (DeFi), projects started popping up across the crypto industry. Of course, they mostly appear on Ethereum, where the concept originated. Developers started creating projects that offer lending, staking, yield farming, and more. Binance recognized the opportunity but also realized that Binance Chain was not suitable for hosting DeFi. It has limited scalability, so users have no incentive to switch from Ethereum.
To fix this problem, Binance has launched the Binance Smart Chain. As mentioned, this chain is created specifically for smart contracts and DeFi. It has a much more scalable token model and it quickly attracts new projects as BSC also solves the problem around high transaction fees.
How is BEP-2 different from ERC-20?
BEP-2 is the token standard for minting and deploying tokens on the BNB Beacon Chain. ERC-20, on the other hand, is the technical standard for building and deploying smart contracts on Ethereum’s network. As such, the ERC-20 has little in common with the BEP-2 even though the BEP-2 is inspired by the ERC-20.
BEP-20 is much more similar to ERC-20 and it can be said that the two standards are twins. Although the BEP-20 was created many years after the ERC-20, both serve the same purpose and there is almost no difference between them. Of course, BEP-20 is in the Binance ecosystem, while ERC-20 is still in its own Ethereum ecosystem.
——————-
Summary questions:
What is the difference between BEP-2 and BEP-20?
The main difference between BEP-2 and BEP-20 is that they run on different blockchains. Although both chains belong to Binance, BEP-2 belongs to Binance Chain and BEP-20 belongs to Binance Smart Chain. However, they also differ greatly in terms of how they work and the type of token standard.
- source: https://vn.beincrypto.com/
What is the difference between ERC-20, BEP-2 and BEP-20?
BEP-20 runs on Binance Smart Chain and is used to develop and launch new tokens, DeFi, dApps, and more. ERC-20 is practically the same but on the Ethereum blockchain. BEP-2 serves as the technical standard for issuing and deploying tokens on Binance’s native blockchain — the BNB Beacon Chain.
Is BEP-2 Like Bitcoin?
No, BEP-2 is the native cryptocurrency that runs on Binance Chain. Bitcoin is a native currency that runs on the Bitcoin blockchain. However, there is a wrapped version of Bitcoin on the Binance Chain, called Bitcoin BEP2 (BTCB).
