Binance Smart Chain, BEP2 and BEP20 Tokens - Features

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BEP 2 Standard - This is a single protocol for all tokens on the Binance blockchain. Supports a set of characteristics that tokens must meet in order to successfully function in the Binance Chain ecosystem. A set of technical specifications ensures that assets within an ecosystem can seamlessly interact with each other, as well as with the surrounding network.

The first token released on the Binance blockchain is BTCB, a Bitcoin-backed BEP2 token. The price of this token is pegged to BTC at the rate of 1 BTCB = 1 BTC. BTCB is 100% backed by the same amount of BTC in the public reserve address. This address is completely transparent to any auditor at any time.

The main advantage of crypto-pegged tokens is that many coins that have their own blockchains and are not native to the Binance chain become available to traders on the Binance DEX decentralized exchange. With the increased selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, further increasing the utility of Binance DEX.

Features of the BEP2 standard

The BEP2 standard is essentially the same as ERC-20 on Ethereum, only on the Binance Chain blockchain. However, the addresses for both networks are different.

BEP2 - The token on the Binance blockchain starts with: bnb243ns6lfw5zs9hg1n82vdthaad7hq5m4gtkgf57.

ERC-20 - A token on the Ethereum blockchain starts with: 0x0e506cea3e2beba6df20138ef9f15b22c5a6ce74.

Similarly, the address for OMNI and TRC-20 are different:

OMNI - a token on the Omni network starts with: 1LShrVV9EsfSS4crXLBo9BRVXyuHjf1Tsa.

TRC-20 is a token standard on the TRON network and their address starts with: TWsVAb3EWAhKdtnTD7XoEdkvs4AoyvkgN9.

Also the BEP-2 address requires the use of MEMO, which is not required for OMNI, TRC20 or ERC-20 deposits and withdrawals. This way, there should be no confusion when depositing or withdrawing tokens.

Even if you enter an incorrect address, the exchange will warn you with the following message - “The address does not match the currently selected network, it is recommended to switch to another network.” Likewise, when you send coins/tokens from your wallet, you will receive an error message - “Recipient Address is Invalid” if you enter an incorrect address.

But now things have become a little confusing for many newbies after Binance launched BSC (Binance Smart Chain) and opened deposit and withdrawal option for BEP20 tokens.

Connecting MetaMask to the BSC mainnet

1. In MetaMask wallet, open your account and go to the settings page.

2. Select a network from the menu and click “Add new network”.

3. Now enter the following details:

• Network name: BSC Mainnet
• New RPC URL https://bsc-dataseed1.binance.org/
• ChainID: 56
• Token: BNB
• Explorer URL: https://bscscan.com/

Once done, click “Save” to add BSC Mainnet to your MetaMask wallet.

BEP 20 tokens

BEP 20 option is now available for major assets such as BTC, ETH, USDT, LINK, DOT, DAI, EOS, LTC, XRP, XTZ, BCH, BAND, ADA, ONT and other cryptocurrencies.

So now when you deposit or withdraw any of these coins, you will be asked to select your network type. After entering the wallet address or recipient address for withdrawal, the exchange will automatically select a network based on the entered address.

But what's even more confusing is that both BEP 20 and ERC-20 use the same address format. They also listed ETH as ERC-20. Hopefully Binance will change this soon to avoid any confusion.

ETH is neither ERC-20 nor BEP2 nor BEP20. ETH is its own coin on its own chain. ERC 20 is a token on the ETH chain, and BEP 2, BEP 20 is a token on the Binance chain and Binance smart chain respectively.

So what is the difference between these two networks, why does BEP 20 use the same address as ERC 20, and which one should you choose when transferring ETH or other coins?

Risk Warning

Be careful: DeFi is still in an experimental stage and is a risky place to store your money. Many projects appear every day. All of these projects are in beta testing and most of them have not been audited and may fail.

Audits are not a seal of approval and do not completely eliminate risks. So please do not use your savings or assets in DeFi that you simply cannot afford to lose.

Understand the risks and stay safe.

This post does not constitute investment or trading advice. This is just a guide that shows you how to connect your MetaMask wallet to the Binance network.

BEP 20 Network - Binance Smart Network

Binance Smart Chain - This is a Binance parallel chain designed to enable smart contracts, and it comes with an Ethereum Virtual Machine compatible environment.

It is not intended to compete with Ethereum or replace ETH. BSC (Binance Smart Chain) is simply an ETH-compatible chain that is designed to provide users with additional features such as fast block times (transaction speed), low fees, etc.

Users will now be able to transfer the same asset (ERC20 token) in a shorter time frame and at a noticeably lower cost (low gas price) through the Binance smart chain (BEP20 token). These are called pegged tokens.

What are Pegged tokens?

Pegged tokens are a type of token whose value will be tied to the original cryptocurrency. For example, the Chain Link (ERC-20) token will be pegged at a 1:1 ratio with the Chain Link (BEP-20) token. Not only ERC 20 tokens are available on the Binance smart chain, but also tokenized versions of Bitcoin, Ethereum, Litecoin, Tether (USDT).

These tokens are designed to trade assets on a DEX and benefit from the speed and transaction efficiency of the new blockchain. These coins and tokens are packaged and pegged 1:1 by Binance to their respective native cryptocurrency. On Binance Explorer you can find a complete list of Binance pegged tokens (BEP 20) and their contract addresses.

These tokens are currently traded on Binance and Binance DEX. You can switch to and from Binance at any time and exchange them for your own assets.

What is the difference between BEP-2, BEP-20 and ERC-20?

Most of the popular tokens today are ERC-20 tokens built on top of Ethereum.

ERC-20 is the technical standard for smart contracts on the Ethereum blockchain for tokens.

BEP-2 is the technical standard for implementing and launching tokens on the Binance blockchain.

BEP-20 is the token standard on the Binance Smart Chain.

This is all you need to understand: ERC 20 is the Ethereum blockchain, BEP 2 is the Binance blockchain, BEP 20 is the Binance smart chain.

For example, if you select BEP 20 as the network and send your ERC 20 token, then the transaction will be visible on the BSC scan rather than the Etherscan scan. This is because you brought it to the Binance blockchain, not the Ethereum blockchain.

So, when making a deposit or withdrawal, make sure you choose the right network. Make sure you are using the correct blockchain that the platform supports.

Advantages and disadvantages

BEP2 is the proprietary standard of the Binance exchange ecosystem. Of course, its key advantage is fast and inexpensive access to trading pairs and individual services.

Of course, we will not take Binance’s claims about the high security of exchange accounts seriously.

The disadvantage is a strong attachment to one’s own ecosystem. However, armed with basic knowledge, you can enter the broader environment - BSC. The main thing is to take precautions, which we will remind you of again in the final part.

BEP2 Wallets

The BEP2 standard has become quite popular, so corresponding wallets for storing and transferring such coins are also appearing. List of most used wallets:

Binance Chain Wallet is a browser-based wallet in the form of an extension, similar in functionality to MetaMask, but only focused on working with coins of the BEP2 and BEP20 standards. It is quickly installed and allows for convenient exchange from one standard to another.

By default, the wallet only supports BNB, but any other tokens of the listed blockchains can be added and removed manually by the user.

This is the official BNB coin wallet after the network launch. It allows you to literally store your assets on the Binance DEX. Built on DEX, the web wallet is a secure blockchain-based wallet that allows users to generate their BNB addresses and control their private keys. Users should keep their private keys in a safe place because losing them means losing their funds. A user can send and receive BNB tokens, as well as other assets on the Binance Chain, using their Binance Chain web wallet.

To create a wallet, you need to create a password and keystore file that unlocks your wallet. A 24-word mnemonic phrase and a private key are the primary method for protecting your privacy.

Binance Chain Wallet - Browser Wallet

Trustee Wallet is one of the few mobile non-custodial crypto wallets that does not store user access keys to balances on its servers, i.e. your balances are completely yours and only you manage them. At the same time, Trustee Wallet is a multi-currency wallet that supports a huge number of coins.

Main features and advantages of the wallet:

• Multicurrency. Supports many cryptocurrencies and absolutely all tokens of the ERC-20, TRC-10, TRC-20 and BEP-20 standards, including popular stablecoins and DeFi tokens.
• Privacy and anonymity. Since Trustee Wallet is a non-custodial decentralized wallet, no data is required for successful use, that is, you do not need to register anywhere, enter any email, phone numbers, passport data, etc. Just install, write down the generated seed phrase (12 or 24 words) on paper and use it. You can receive and send any transactions, to any and from any addresses.
• Buying, selling, exchanging. One of the distinctive features of the wallet is the presence of built-in monitoring of exchangers, where you can buy crypto for fiat money, sell it for fiat money and exchange it among themselves.
• Support for various payment systems. The wallet has support for payment systems: Visa, MasterCard, Qiwi, Yoomoney, Webmoney, Capitalist, PerfectMoney, Payeer, ADVCash, Bank transfer.
• Swap. In addition to the availability of exchanges through providers, the wallet offers conversion of BNB Coin to BNB Smart Chain, as well as swap of Tron blockchain assets. Nowadays, many different projects are creating tokens on Binance Smart Chain and Tron, so the functions will be useful to many of you.
• Wallet connect. Another addition is the Wallet Connect feature. It is suitable for all those who actively work with DEXs such as Uniswap or PanCake, invest in various DeFi projects or use dApps. The feature allows you to connect to any decentralized exchange that supports Wallet connect.
• Staking Tron (TRX). Having any number of TRX coins, you can, according to the rules of the Tron blockchain, stake them in both throughput and energy. For both options, you will be charged on average from 6 to 9 percent per annum on the amount of steak.

Remember that the wallet does not directly store your funds. Your funds are protected by a seed phrase. If you lose your keys—seed phrase (recovery phrase, mnemonic phrase), you will lose access to your wallet. So write it down and keep it in a safe place. In case something happens to your phone, it will allow you to restore your wallet on another device.

You can also import any seed from any non-custodial wallet into your Trustee wallet and access your balances. Similarly, the Trustee seed can be imported into any other non-custodial wallet, i.e. Trustee does not limit real cryptan in any way and gives complete freedom of choice of what to use and how. The best Russian-language wallet in our opinion!

Trustee Wallet - Multi-currency wallet for cryptocurrency

Trust Wallet is a multi-currency mobile wallet that allows you to simultaneously work with a number of digital assets. Its launch took place in November 2022. In July 2022, the project was purchased by the team of the popular cryptocurrency exchange Binance. Currently, the crypto wallet is part of the ecosystem of the mentioned company and its official wallet. Supports any ERC-20 and BEP2 coins.

The wallet supports more than 50 popular coins. Users have the opportunity to add any token from such popular blockchains as Ethereum, Callisto, Ethereum Classic, POA Network, VeChain, Wanchain, TomoChain.

The Trust Wallet crypto wallet is also a full-fledged Web3 browser with which you can interact with DApps - decentralized applications created on the Ethereum network.

The service team works directly with DApps developers - applications are thoroughly checked and then added to the local wallet marketplace. The list of available DApps is constantly expanding.

Wallet advantages:

• Support for a large number of tokens.
• Local key storage, which gives the user complete control over their funds.
• Opportunity to participate in an initial coin offering (ICO) or airdrop.
• High level of security.
• Simple and intuitive interface.

To get started, you need to download and install the application. Next, the system will prompt you to create a new wallet. The first step is to install the seed phrase. The presented words of the phrase must be written down and stored in an inaccessible place. The final stage of creating a wallet will be verification of the seed phrase.

The wallet also allows you to make transactions on decentralized exchanges. The corresponding functionality is located in the DEX section.

Trust Wallet - Multi-currency wallet for cryptocurrency

Guarda Wallet is a multi-currency cryptocurrency wallet that offers online, desktop and mobile wallets. Guarda can be synced with the Ledger Nano X hardware wallet for increased security, it does not store your private keys and is very easy to use.

Unlike many other wallets, you don't need to install different apps for different tokens - you can store them all in one place. ​ Guarda Wallet supports more than 50 major blockchains and more than 400 thousand tokens of all leading protocols. Maintain complete control over your assets.

The Guarda wallet has an intuitive interface, provides a high degree of protection for your funds and is the easiest way to store, send and receive the necessary tokens.

Guarda Wallet features:

• Bet, trade, earn and buy Bitcoin, Ethereum and thousands of other assets.
• Buy Bitcoin, Ethereum and over 50 other coins and tokens.
• Instantly exchange cryptocurrency for over 50 coins at the best exchange rates.
• Earn money through betting. Lots of trending assets available to invest up to almost 40% annual return.

You can be completely confident in the safety of your funds - you are the only person who has access to your wallet. Guarda gives you full user control over your wallet and funds. As a non-custodial wallet, Guarda Wallet does not require any personal information to create the wallet, does not store the user's private keys, and does not have access to the wallet and funds.

The wallet is available in 4 versions:

1. Web wallet
2. Desktop wallet
3. Mobile wallet
4. Extension for Google Chrome

In addition to the usual functions, including storage and deposit/withdrawal of cryptocurrency, it is also possible to immediately buy the required amount of cryptocurrency using a bank card or exchange one cryptocurrency for another.

Guarda Wallet - Multi-currency wallet for cryptocurrency

Binance DEX is a decentralized exchange designed on top of Binance Chain, with low latency, high throughput, low fees and UX similar to existing centralized exchanges. Supports any ERC-20 and BEP2 coins.

According to Binance CEO Changpeng Zhao (CZ), the goal of creating the DEX platform was to implement “a reliable and transparent financial system that will bring a new level of freedom to the community by offering much greater control over their own assets.”

Binance DEX offers various tools for asset trading, and is also a native web wallet for the blockchain of the same name. Through its interface, you can create new BNB wallets with the usual functionality for receiving/sending crypto assets. There is also support for interacting with the exchange via API.

Due to the fact that the DEX is built on the Binance Chain network, which has high speed and load resistance, it can easily handle the same trading volumes as a centralized platform.

Another important point is that all trade and other transactions are recorded on the blockchain, thereby creating a complete verifiable ledger of transactions. Additionally, unlike centralized exchanges, Binance DEX does not require registration to access trading tools and fund sending/receiving features. All you need to do is create a new BNB wallet.

Binance DEX - Decentralized Exchange

Ledger - Hardware wallet. It is a continuation of the line of hardware wallets produced by the French company Ledger. Supports any ERC-20 and BEP2 coins.

The device has the following options:

• Multicurrency.
• Built-in display.
• Integration with software from the Ledger manufacturer.
• Two-factor authentication.
• Easy to restore.

The Ledger company highlights four main points in wallet security:

• Secure module based on ST31/STM32.
• Malware protection.
• PIN code.
• Confidentiality.

List of supported cryptocurrencies:

Using the Ledger Manager application from the manufacturer, you can create and manage wallets for the following currencies: Bitcoin, Ethereum, Litecoin, Dogecoin, Zcash, Dash, Stratis, Ripple, Bitcoin Cash, Bitcoin Gold, Komodo, Ethereum Classic, ARK, NEO, Qtum, Expanse.

Ledger - Hardware Wallet

Trezor - Hardware wallet for cryptocurrency. It features an intuitive web interface. After installation, it provides the opportunity to view transaction history, receive bitcoins, send them, and work with many third-party applications. Supports any ERC-20 and BEP2 coins.

The initial setup of the wallet is not difficult, but there are a number of features that need to be mentioned. The documentation included in the package, as well as on the website, recommends starting to work with the device from the website - https://wallet.trezor.io. This site is a web interface for working with Trezor and provides all the necessary functionality for working with the wallet. You must use Chrome as a browser (on all three supported operating systems), since a special extension has been created for it.

To work in other browsers, it is possible to install an additional application called “TREZOR Bridge”. When it starts, the “trezord” service is loaded, launching a local web server, with which, in turn, other browsers interact.

The Trezor hardware wallet is recommended for those who are concerned about the security of their funds stored in Bitcoin or supported altcoins. Moreover, the wallet is precisely an additional protection implemented by the built-in Cortex M3 microcontroller. To ensure protection, official implementations of BIP39 (for working with keywords), as well as BIP32 and BIP44 are used.

However, the wallet does not store the entire set of transactions, using external storage for this, with which the work is organized. For this reason, this cryptocurrency wallet can only be called a conditionally hardware wallet. Nevertheless, Trezor is quite popular in its segment, and this popularity is ensured by the implementation of user feedback, which is the “highlight” of this device.

Trezor - Hardware wallet