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Glossary

BEP-2 (Binance Chain Tokenization Standard)

November 21, 2023 - Around 4 mins mins to read

In the world of blockchain and cryptocurrency, various standards have been developed to ensure interoperability and consistency within different ecosystems. One such standard is BEP-2, also known as Binance Chain Evolution Proposal 2. This technical standard governs the creation and usage of new tokens on Binance Chain, which is a blockchain platform developed by Binance, one of the largest cryptocurrency exchanges.

Similar to ERC-20 in the Ethereum blockchain, BEP-2 serves as a token standard for Binance Chain. It establishes a set of rules and technical specifications that tokens must adhere to in order to function within the Binance Chain ecosystem. These rules ensure that tokens issued on Binance Chain can seamlessly interact with other tokens and applications within the ecosystem.

While the BEP-2 standard defines the fundamental features of tokens issued on Binance Chain, each token can have its own unique implementation based on its specific use cases. This flexibility allows tokens to represent a wide range of digital assets and tradable goods. For example, stablecoins like BUSD and pegged Bitcoin BEP-2 are notable examples of tokens that leverage the benefits of the BEP-2 standard.

BEP-2 tokens are hosted on Binance Chain, a blockchain platform that relies on 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 the energy-intensive proof-of-work consensus used by blockchain platforms like Bitcoin. The use of DPoS enables Binance Chain to achieve high throughput and low latency, making it suitable for fast and efficient token transfers.

Each BEP-2 token possesses several properties that define its characteristics within the Binance Chain ecosystem. These properties include:

  • Source Address: The source address represents the owner of the issued token. It is associated with a specific wallet or account on Binance Chain.
  • Token Name: The token name is the long-form name of the token, such as “MyToken.” It helps to distinguish one token from another and provides additional information about the token’s purpose or issuer.
  • Symbol: The symbol serves as the identifier for the newly issued token. It is a shorthand representation of the token name, typically consisting of a few characters.
  • Total Supply: The total supply denotes the overall number of issued tokens. It represents the maximum number of tokens that can ever exist for a particular token.
  • Mintable: Mintable indicates whether the token can be minted in the future, thereby increasing the total supply. Some tokens may have a fixed supply, while others may allow for additional tokens to be created.

To gain a more comprehensive understanding of the Binance Chain architecture and how BEP-2 tokens fit into the larger ecosystem, you can consult the project documentation provided by Binance. The documentation provides detailed technical information and guidelines on token creation and usage within the Binance Chain ecosystem.

It’s important to note that Binance Chain has its native asset called BNB (Binance Coin), which is used as the utility token for paying transaction fees on the blockchain. Similar to gas fees in other blockchain networks, a small amount of BNB must be present in the wallet when transferring BEP-2 tokens. This incentivizes validators to include transactions in the blockchain, as they receive BNB as a fee for their efforts.

While Binance Chain is optimized for ultra-fast trading, it has a sister chain called Binance Smart Chain (BSC) that focuses on executing smart contracts and decentralized applications (DApps) without congesting the original chain. Both chains operate independently but are complementary within the same ecosystem. Due to this dual chain architecture, cross-chain compatibility was prioritized. As a result, BEP-2 tokens can be easily exchanged for their BEP-20 equivalent on the Binance Smart Chain.

In conclusion, BEP-2 is a tokenization standard for Binance Chain that ensures consistency and interoperability within the ecosystem. It provides a set of rules and technical specifications for the creation and usage of tokens on Binance Chain, allowing them to seamlessly interact with other tokens and applications. By adhering to the BEP-2 standard, projects can leverage the benefits of Binance Chain, such as high throughput, low latency, and cross-chain compatibility.

BEP-2 tokens can be traded on Binance DEX, a decentralized exchange built on top of Binance Chain. This allows users to trade their tokens in a peer-to-peer manner without relying on a centralized exchange.

Author

Coincu

Glossary

BEP-2 (Binance Chain Tokenization Standard)

In the world of blockchain and cryptocurrency, various standards have been developed to ensure interoperability and consistency within different ecosystems. One such standard is BEP-2, also known as Binance Chain Evolution Proposal 2. This technical standard governs the creation and usage of new tokens on Binance Chain, which is a blockchain platform developed by Binance, one of the largest cryptocurrency exchanges.

Similar to ERC-20 in the Ethereum blockchain, BEP-2 serves as a token standard for Binance Chain. It establishes a set of rules and technical specifications that tokens must adhere to in order to function within the Binance Chain ecosystem. These rules ensure that tokens issued on Binance Chain can seamlessly interact with other tokens and applications within the ecosystem.

While the BEP-2 standard defines the fundamental features of tokens issued on Binance Chain, each token can have its own unique implementation based on its specific use cases. This flexibility allows tokens to represent a wide range of digital assets and tradable goods. For example, stablecoins like BUSD and pegged Bitcoin BEP-2 are notable examples of tokens that leverage the benefits of the BEP-2 standard.

BEP-2 tokens are hosted on Binance Chain, a blockchain platform that relies on 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 the energy-intensive proof-of-work consensus used by blockchain platforms like Bitcoin. The use of DPoS enables Binance Chain to achieve high throughput and low latency, making it suitable for fast and efficient token transfers.

Each BEP-2 token possesses several properties that define its characteristics within the Binance Chain ecosystem. These properties include:

  • Source Address: The source address represents the owner of the issued token. It is associated with a specific wallet or account on Binance Chain.
  • Token Name: The token name is the long-form name of the token, such as “MyToken.” It helps to distinguish one token from another and provides additional information about the token’s purpose or issuer.
  • Symbol: The symbol serves as the identifier for the newly issued token. It is a shorthand representation of the token name, typically consisting of a few characters.
  • Total Supply: The total supply denotes the overall number of issued tokens. It represents the maximum number of tokens that can ever exist for a particular token.
  • Mintable: Mintable indicates whether the token can be minted in the future, thereby increasing the total supply. Some tokens may have a fixed supply, while others may allow for additional tokens to be created.

To gain a more comprehensive understanding of the Binance Chain architecture and how BEP-2 tokens fit into the larger ecosystem, you can consult the project documentation provided by Binance. The documentation provides detailed technical information and guidelines on token creation and usage within the Binance Chain ecosystem.

It’s important to note that Binance Chain has its native asset called BNB (Binance Coin), which is used as the utility token for paying transaction fees on the blockchain. Similar to gas fees in other blockchain networks, a small amount of BNB must be present in the wallet when transferring BEP-2 tokens. This incentivizes validators to include transactions in the blockchain, as they receive BNB as a fee for their efforts.

While Binance Chain is optimized for ultra-fast trading, it has a sister chain called Binance Smart Chain (BSC) that focuses on executing smart contracts and decentralized applications (DApps) without congesting the original chain. Both chains operate independently but are complementary within the same ecosystem. Due to this dual chain architecture, cross-chain compatibility was prioritized. As a result, BEP-2 tokens can be easily exchanged for their BEP-20 equivalent on the Binance Smart Chain.

In conclusion, BEP-2 is a tokenization standard for Binance Chain that ensures consistency and interoperability within the ecosystem. It provides a set of rules and technical specifications for the creation and usage of tokens on Binance Chain, allowing them to seamlessly interact with other tokens and applications. By adhering to the BEP-2 standard, projects can leverage the benefits of Binance Chain, such as high throughput, low latency, and cross-chain compatibility.

BEP-2 tokens can be traded on Binance DEX, a decentralized exchange built on top of Binance Chain. This allows users to trade their tokens in a peer-to-peer manner without relying on a centralized exchange.

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