BEP-2 (Binance Chain Tokenization Standard)

November 21, 2023 - Around 3 mins mins to read

Understanding BEP-2 (Binance Chain Tokenization Standard)

BEP-2, also known as Binance Chain Evolution Proposal 2, is a technical standard that governs the creation and usage of new tokens on 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. Similar to ERC-20 in the Ethereum blockchain, BEP-2 serves as a token standard. For more information on the original proposal, you can refer to the Binance project’s GitHub page.

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. BEP-2 tokens can represent a wide range of digital assets and tradable goods. The standard ensures seamless integration between these tokens and the surrounding ecosystem. Notable examples of BEP-2 tokens include stablecoins like BUSD and pegged Bitcoin BEP-2, among many other multichain projects that leverage the benefits of BEP-2.

BEP-2 tokens are hosted on Binance Chain, which 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 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: The token name is the long-form name of the token, such as “MyToken.”
Symbol: The symbol serves as the identifier for the newly issued token.
Total Supply: The total supply denotes the overall number of issued tokens.
Mintable: Mintable indicates whether the token can be minted in the future, thereby increasing the total supply.

To gain a more comprehensive understanding of the Binance Chain architecture, you can consult the project documentation.

The native asset of Binance Chain is BNB, which is utilized to pay for fees, similar to gas. Consequently, when transferring BEP-2 tokens, a small amount of BNB must be present in the wallet. 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 without congesting the original chain. Both chains are complementary within the same ecosystem but operate independently. 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.

BEP-2 tokens can be traded on Binance DEX, a decentralized exchange built on top of Binance Chain.

Glossary

BEP-2 (Binance Chain Tokenization Standard)

Understanding BEP-2 (Binance Chain Tokenization Standard)

Each BEP-2 token possesses the following properties:

Source Address: The source address represents the owner of the issued token.
Token Name: The token name is the long-form name of the token, such as “MyToken.”
Symbol: The symbol serves as the identifier for the newly issued token.
Total Supply: The total supply denotes the overall number of issued tokens.
Mintable: Mintable indicates whether the token can be minted in the future, thereby increasing the total supply.

To gain a more comprehensive understanding of the Binance Chain architecture, you can consult the project documentation.

BEP-2 tokens can be traded on Binance DEX, a decentralized exchange built on top of Binance Chain.

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