Exchange BEP-20 to ERC-20 Binance’s Own Cryptocurrency and What to Do with It

Exchange BEP-20 to ERC-20 Binance’s Own Cryptocurrency and What to Do with It

When it comes to working on the market of cryptocurrencies, few familiar with it would not instantly think of Binance. The biggest exchange of cryptocurrencies in the space has been successfully operating for years, offering users a host of services and unmatched levels of liquidity along with a considerably high degree of security, all enough to make it the go-to trading venue in all the blockchain space.

In fact, Binance is much, much more than just an exchange, it is an entire network on the blockchain of its own. Just like the Ethereum blockchain pioneered the hosting of services and Dapps on a massive scale, so too is Binance, which has been developing its own chain for the last two years. As a direct competitor to the Ethereum network, Binance hosts multiple services and various apps, including swaps, games, utility projects, and many more. But unlike Ethereum, which is still struggling with its transition to the Proof-of-Stake algorithm, the Binance network has been operating on the Delegated Proof-of-Stake algorithm for a while a major factor contributing to the immense demand for its native BEP-20 token.

The Binance Smart Chain is Binance’s own network that acts as a framework for an entire ecosystem of services, which includes anything including storage and launchpad facilities to trading venues and staking pools. Binance is home to many additional applications like the Trust Wallet, in addition to its own wallet that serves as a repository for tokens, coins, and even NFTs. Apart from the native BEP-20, Binance also hosts multiple cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, and numerous tokens and NFTs alike.

With the native Binance coin being so popular as a staking instrument, many users are considering it a highly coveted asset. In reality, many are searching the internet for the query “exchange BEP-20 to ERC-20”, believing that there is a major difference between the two standards. However, any common wallet address can host both standards, since the difference between them is almost negligible.

Exchange BEP-20 to ERC-20 Do It or Not?

To be entirely clear about the purpose for the introduction of the BEP-20 standard, it is necessary to understand the basics of its operation. The Binance Smart Chain was first launched in order to facilitate the operation of Binance itself, allowing it to distance from the potential clogs and congestions of Ethereum network traffic, as well as the possible problems that other blockchains could face.

The Binance Smart Chain is a dedicated blockchain catering only to Binance and its smart contracts that support the BEP-20 standard. The Binance Smart Chain, or the BSC as it is often called, is a completely mirrored blockchain network of the network on the Binance Chain, the initial infrastructure of the Binance platform that was launched earlier. The BEP-20 standard is basically the instrument used for releasing any assets on the Binance Smart Chain. It acts in very much a similar way as the ERC-20 that is at the core of Ethereum.

The reason for the introduction of the Binance Smart Chain itself is quite banal facilitating and accelerating operations as the Binance network scaled and attracted more users and liquidity. The core reasoning from a developmental standpoint was the acceleration of transaction processing to accommodate a growing user base. For this purpose, a dedicated smart contract was needed, with the BEP-20 standard becoming the solution.

At its core, the BEP-20 standard is just a template for operating on the Binance Smart Chain. It includes a set of rules that stipulate the functioning of the smart contract, its conditions, execution parameters, block size, and others. The BEP-20 standard can be used for releasing any kind of asset on the Binance Smart Chain, including utility tokens and stablecoins.

The similarities shared by the BEP-20 standard and the ERC-20 are quite striking, since the native Binance Coin is also capable of being used as a means of payment inside Binance and as a staking instrument. In much the same way, all ERC-20 tokens can be used as internal currencies on their respective platforms.

As we move closer to the concept of exchanging BEP-20 for ERC-20 tokens, it becomes necessary to explore the parameters of the BEP-20 standard. The BEP-20, unlike the ERC-20, includes some functions that make it rather unique. The first such parameter is the Blacklist, which allows Binance to instantly ban any dubious addresses that transfer BEP-20 tokens.

The next parameter is Can Mint, that gives Binance and the many projects hosted on its native network to issue additional BEP-20 within a stipulated amount, thus increasing their circulating supply.

In stark contrast, the Can Burn parameter gives both Binance and its hosted projects the chance to burn a set amount of tokens for deflationary purposes.

Another parameter is the Can Pause, which is rather innovative and is designed to protect the network against some types of attacks. If the network is subjected to an attack, or if the platform suddenly suffers from extreme downtime, the users can place all of their BEP-20 standard token contracts on pause until the causes of the situation have been rectified.

Many users are facing the dilemma of wondering what the BEP-20 standard is used for. In fact, it is used for the exact same purposes as the ERC-20 standard, with the exception being that it is deployed and used within the framework of Binance. The two standards are very much alike and have many similarities, including their total supply and balances, which can be traced via explorers to find out the total amount of tokens in circulation and the amount on a specific address, respectively. In addition, the BEP-20 can be used for creating new tickers and is rather flexible in terms of customization for the conditions stipulated in the underlying smart contract.

However, there are some differences that can be pointed out between the two standards. Most notable among them are the technicalities, such as the symbol and the name functions, which are vital for the smart contract deployment in the case of the BEP-20. Another handy function is “getOwner”, which allows users to find concrete information about the holder of a specific wallet address.

Key Takeaways

It is actually not that difficult to exchange BEP20 to ERC20. The differences between the BEP-20 standard and the ERC-20 standard are technical by nature, since the former is largely a copy of the latter, designed to cater to the needs of the exchange’s network. Whether resorting to the Bianance Coin for slashing commissions or exchanging BEP for ERC, market participants need not think of the technical aspects, since the Binance exchange has made the process seamless within the framework of its platform.