Blockchain technology has revolutionized finance, enabling institutions to launch tokens on private and public networks. These tokens can power digital currencies via initial coin offerings (ICOs) or customer reward programs. Two dominant token standards—ERC-20 and BEP-20—offer distinct features, use cases, and trade-offs.
This guide compares ERC-20 and BEP-20 across transaction speed, security, compatibility, and infrastructure requirements to help you choose the right standard for your project.
Understanding Token Standards
What Is a Token Standard?
A token standard defines rules governing token behavior on a blockchain. It specifies smart contract conditions, functions, and parameters such as:
- Transfer protocols
- Name registries
- Supply mechanisms
Like software development kits (SDKs), these standards let developers create interoperable tokens for decentralized applications (dApps). The choice between ERC-20 (Ethereum) and BEP-20 (Binance Smart Chain) significantly impacts digital asset infrastructure and market strategy.
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Why Multiple Standards Exist
Different blockchains require unique token standards to optimize security and efficiency. For example:
- Ethereum prioritizes decentralization and developer community support
- Binance Smart Chain (BSC) emphasizes speed and low-cost transactions
This diversity prevents monopolies and lets developers select the best-fit platform.
ERC-20 Token Standard: Ethereum’s Framework
Key Components
ERC-20 mandates six core functions:
TotalSupply– Returns token supplyBalanceOf– Checks wallet balancesTransfer– Moves tokens between accountsTransferFrom– Enables third-party transfersApprove– Sets spending allowancesAllowance– Checks approved limits
Optional metadata includes token names, symbols, and decimal precision.
How It Works
ERC-20 tokens interact seamlessly with Ethereum dApps like Uniswap and MetaMask. Transactions require ETH gas fees, which spike during network congestion.
Creation Process
- Learn Solidity programming
- Use tools like Remix and Truffle
- Deploy smart contracts via Ethereum wallets
BEP-20 Token Standard: Binance Smart Chain’s Protocol
Unique Features
Beyond ERC-20’s basics, BEP-20 adds:
- Blacklisting – Bans malicious addresses
- Minting/Burning – Controls token supply inflation/deflation
- Pausing – Halts transactions during attacks
Advantages
- Lower fees (BSC averages $0.15 vs. Ethereum’s $1.50+)
- Faster transactions (100 TPS vs. Ethereum’s 30 TPS)
Development Steps
- Select BSC-compatible tools
- Complete Binance KYC
- Write/deploy smart contracts
Comparative Analysis
| Feature | ERC-20 | BEP-20 |
|---|---|---|
| Speed | 20-30 TPS | 100 TPS |
| Fees | High gas fees | Low-cost transactions |
| Security | Proven decentralized security | Centralized but efficient |
| Ecosystem | Larger developer community | Faster-growing network |
| Use Cases | Complex dApps, DeFi | High-volume transfers, swaps |
Storage and Exchange Options
Secure Wallets
- ERC-20: Trezor, Ledger (hardware); MetaMask (software)
- BEP-20: Trust Wallet, Ledger BSC integration
Top Exchanges
- Binance – Supports both standards
- Uniswap – ERC-20 focused
- PancakeSwap – BEP-20 optimized
FAQs
Can BEP-20 tokens convert to ERC-20?
Yes, via cross-chain bridges (e.g., Binance Bridge).
Which standard is more secure?
Both are secure, but ERC-20 benefits from Ethereum’s longer decentralization history.
Are these tokens profitable?
Yes, depending on utility. BEP-20’s low fees make it ideal for frequent traders.
How do I choose between them?
- ERC-20: Prioritize decentralization and ecosystem depth
- BEP-20: Need speed and cost efficiency
Final Thoughts
ERC-20 and BEP-20 serve different blockchain strategies. While Ethereum dominates with developer support, Binance Smart Chain offers scalable alternatives for cost-sensitive projects. Evaluate your priorities—security, speed, or fees—to select the optimal standard.
For enterprises, AlphaPoint’s white-label solutions streamline token creation across both standards, enabling rapid deployment of secure digital assets. Discover how our infrastructure can power your blockchain strategy.