BEP-2 is a token standard on the Binance blockchain and defines the technical specifications for tokens to function in this ecosystem. Every token traded with this standard actually becomes a BEP-2 token, and BNB coin must be used for the fees to be paid for these transactions.
What is BEP-2 Address?
BEP-2 is a protocol that defines Binance’s own rules for programming, issuing and managing new cryptocurrencies. This protocol is similar to the ERC-20 standard of the Ethereum blockchain. For example, if a company wants to create a cryptocurrency on the Ethereum blockchain, it must adhere to the ERC-20 protocol. All tokens that comply with the rules of this protocol are ERC-20 tokens. Just like that, if you want to create a cryptocurrency on Binance, BEP-2 protocol framework should be worked on. If all tokens comply with this protocol BEP-2 tokenit happens.
How to Use BEP-2?
For sending from Binance to Binance, using the BEP-2 network is advantageous because less commission is paid. However, for posting to an exchange other than Binance, the destination must be using this network. At the same time, the address you will send with this network must start with BNB.
For example, the BEP-2 network should not be used when sending from Binance to a domestic exchange. If sending via this network, the address to be sent BEP-2 addressmust be available, otherwise you may not be able to access your coins.
BEP-2 Coins
There are many coins that use the BEP-2 network. With these coins, transfers can be made through the said network. Some of the popular coins with a BEP-2 address are:
- Phantom (FTM):Known as one of the “Ethereum killers”, Fantom is a Layer 1 blockchain that aims to solve the problem of scalability and cost efficiency using an aBFT consensus mechanism.
- BTCB:It is a 1:1 peg token issued by BNB and fully to Bitcoin.
- BUSD:It is a USD-backed stablecoin that is pegged and regulated at a ratio of 1:1 to USD.
- Polkadot (DOT): It is a multi-part chain protocol that enables cross-chain transfer of any digital asset. Although it is a native DOT token, it can be exchanged for BEP-2 based DOT through the BC exchange.
- Cardano (ADA): It is a Proof of Stake blockchain platform that enables the storage and transfer of funds using its own cryptocurrency, ADA. As with DOT, ADA tokens are available both in their native form and as BEP-2 tokens.
Differences Between BEP-2 and BEP-20
Although BEP-2 and BEP-20 are in the same ecosystem of the BNB and BSC blockchains and have native token standards, there are some differences between the two tokens:
- Smart contract features:Smart contract features are not supported for tokens in the BEP-2 standard, while the BEP-20 standard has been developed specifically for tokens that will use smart contracts.
- Reconciliation mechanism:BEP-2 uses Proof-of-Work consensus mechanism, while BEP-20 uses Proof-of-Stake.
- Compatibility with Ethereum:BEP-2 tokens cannot operate in an Ethereum-based environment, while BEP-20 tokens are fully Ethereum compatible.
- DEX/CEX transaction fees:BEP-2 tokens require transaction fees on both CEXs and DEXs, while BEP-20 tokens require no transaction fees on either of these exchanges, making BEP-20 tokens more developer friendly.
