BEP20 is a token standard for the Binance Smart Chain (BSC). A token standard is a blueprint that entails the fundamental dynamics of tokens on a blockchain. It ranges from how it’s held, how it’s spent, who can spend it, etc. BEP20 is the token standard that applies to the Binance Smart Chain, which has been made compatible with the ERC 20, Ethereum’s token standard.
For assets to be launched on the Binance Smart Chain, it must follow all the technical requirements of BEP20. As an extension of the Binance Chain, the Binance Smart Chain also shares similar elements with the main chain while complementing it, leading to faster transactions. BEP20 and BEP-2 tokens are both powered by BNB, the native token of the Binance Exchange.
Both BEP-2 and BEP20 tokens can be swapped with their equivalents. Furthermore, due to the structure of the framework, developers can design a BEP20 token or peg a token from another blockchain, making it compatible with the Binance Smart Chain.