The variety of cryptocurrencies and cryptocurrencies has increased rapidly. Naturally, the question of what is BEP20 is at the top of the list of the most frequently asked questions. The BEP 20 network is a technology that enables instant transactions between centralized and decentralized exchanges thanks to faster money transfers and lower costs. In this way, users can switch between platforms and benefit from DeFi services.
BEP20: What Is It? Why Is It So Popular?
BEP20 is an improved version of ERC-20, the most popular Ethereum token standard, and is a token standard developed exclusively for the Binance smart chain. For this reason, it is also referred to as BSC BEP20.
The Binance smartchain allows for faster and cheaper transactions than other chains, as well as easy migration from the Ethereum chain. Like BEP2 tokens on the Binance chain, BEP20 coins are backed by BNB.
In this approach, BNB fee collectors provide incentives for validators to join the network. However, transaction costs in the BEP20 network are much lower than other networks, especially compared to non-scalable chains such as ERC20. BEP20 is a network that has recently gained popularity because of these advantages.
What Is The BEP20 Wallet Address?
BEP20, like other networks, requires its own wallet address. Users are given a special BEP 20 wallet address to make transfers. With this address, it is possible to use the supported tokens for inter-wallet and inter-exchange transactions.
The Binance Smart Chain network uses wallet addresses that are compatible with the EVM (Ethereum Virtual Machine) mechanism and have the same format as Ethereum. When transferring tokens, it is very important that the networks of the sending and receiving wallets match.
Choosing the wrong network will result in irreversible token losses even if the wallet address is correct. Therefore, the network address should be set to Binance Smart Chain when sending BEP20 coins.
The BEP 20 wallet format offered by the Binance infrastructure is not commonly traded on other exchanges. Binance and DeFi are therefore better suited for fast and cheap transfers between exchanges. If tokens need to be transferred to other exchanges, the more popular ERC20 network should be used. However, ERC20 is costly and slow. Other, less costly chains such as Solana and TRON can also be used.
How Are Transfers made Using BEP 20?
To transfer tokens from the Binance exchange to another platform or wallet that accepts BEP20, first select the asset you want to send to the spot wallet.
Select “Withdraw” and then select the number of coins you want to spend.
Add the BEP20 recipient wallet address, which has the same format as ERC20 and starts with “0x…”, under the recipient wallet.
Set the transmission network to BEP 20.
You will receive an email or text message from Binance confirming the transaction. After entering this code and the two-page verification code, the transaction is usually completed within a few minutes.
BNB is used to pay a commission for each BEP20 transfer. Therefore, you should keep some BNB in your wallet for Binance BEP 20 transactions. This will further reduce the transaction cost and increase the speed.
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