What Is BEP 2?

BEP 2 is an abbreviation for Binance Chain Evolution Proposal 2. It is a tokenization standard used on the Binance chain system to ensure that cryptocurrencies integrate with one another more smoothly and seamlessly on the system.

What Is BEP 2?

BEP-2 is a technical standard for the creation and use of Binance Chain tokens. This standard establishes a set of guidelines for tokens to adhere to in order to operate within the Binance Chain ecosystem. ERC-20 is a comparable token standard for issuing Ethereum blockchain tokens.

BEP-2 is not a piece of software, but rather a set of technical specifications. These rules ensure that tokens in the Binance Chain ecosystem can interact with one another smoothly. BEP-2 tokens can represent a wide range of digital assets and tradable goods.
The standard ensures that they can all coexist peacefully with one another and with the environment.

How BEP 2 Works

Binance, one of the largest cryptocurrency exchanges, announced in 2019 that it had completed the development of a Binance chain, a blockchain project.

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BEP 2 was released in 2019, making it the third-youngest token standard behind ERC-20 and NEP-5. The standard is a set of technical specifications rather than software. It establishes a set of guidelines for tokens to follow in order to function within the Binance chain ecosystem.

BEP 2 tokens can be traded. The tokens can be traded on Binance DEX, a decentralized exchange built on top of Binance. The only exchange where you can trade BEP2 is Binance DEX. The tokens have yet to be adopted by more exchanges.

The Binance chain has its own native token, BNB, which is used to pay transaction fees. You’ll need some BNB in your wallet to transfer your BEP2 tokens.

BNB was previously built on the Ethereum blockchain, where most tokens are built, using the ERC20 standard. The native token is built on the BEP 2 standard with the Binance chain transition. BNB was the most valuable token on the Ethereum blockchain prior to the launch of the Binance chain.

BEP 2 tokens, like any other token, can be stored in a variety of wallets. The Trust wallet is an excellent choice for storing BEP 2 tokens in software wallets. You can choose between the Ledger Nano X, Ledger Nano S, Trezor Model T, and Coolwallet S for hardware wallets.

Understanding The Binance Chian

Binance Chain, the technology behind BEP 2, mines blocks on the chain using a combination of Delegated Proof of Stake (DPoS) and Practical Byzantine Fault Tolerance (PBFT). The two consensus algorithms are preferable to the energy-intensive proof of work mechanism.

Because of the benefits of the Binance chain, several blockchain projects have moved their tokens or a portion of their token supply to BEP 2. For example, Bitcoin has a BEP 2 version (BTCB). On the Binance blockchain, BTCB is a Bitcoin-pegged token.

Holders of BTCB can exchange their tokens for other tokens on Binance DEX. Holders can also exchange BTCB for regular Bitcoin on Bitcoin’s main exchange.

Furthermore, several Bitcoin Stablecoins, including TrueUSD and Stably, have moved their operations to the Binance chain. Mithril, Harmony, Aeron, Red Pulse, and Gifto, a blockchain project for live streaming and crypto gaming, are among the other blockchain projects that have joined the Binance chain.

There are currently over 120 assets listed on the Binance chain. Every day, new blockchain projects announce their migration to the Binance chain.

Even though it is still in its early stages, the BEP 2 token protocol is already proving to be a force to be reckoned with in the crypto space. It is already outperforming the outdated ERC20 protocol.

Properties Of BEP 2 Token

Each BEP-2 token has the following properties:

  • Source Address: The source Address is the owner of the issued token.
  • Token Name: Token Name represents the long name of the token – e.g. “MyToken.”
  • Symbol: The symbol is the identifier of the newly issued token.
  • Total Supply: Total supply will be the total number of issued tokens.
  • Mintable: Mintable means whether this token can be minted in the future, which would increase the total supply of the token
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Odu Promise

Odu Promise

Odu Promise is a full-time crypto-journalist with a great understanding of diverse blockchain education. He provide 100 percent original, well-structured, and intriguing material that brings delight to readers and keeps them interested all through.

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