There are different networks for transferring digital currencies, and to transfer any blockchain coin or token, you need to choose the network associated with that digital currency. The digital currency network is a way of transferring digital currencies, which has the complete information of investors on the network in the blockchain, which affects the security of investors’ assets and pays them lower fees. When transferring money to exchanges and wallets, they face TRC20, BEP20, BEP2, ERC20, and OMNI options. They don’t know which network they should choose to transfer their digital assets. Most people with network experience recommend BEP20 and TRC20 for data transfers. In this article, Digital Currency Signal presents and compares the BEP20 network with TRC20 and explains why people suggest choosing these two networks.
What is a digital currency transfer network?
Each coin has its blockchain network. Now these coins can set a set of rules to create tokens on their platform. The rules that the coin network creates to create a token are called the “token standard”. For example, when someone decides to create a new token on the Ethereum network platform, they must follow the Ethereum network standards to do so. Also, a person who wants to create their token based on the Binance network must follow the standards. These standards have caused the common rules of digital currency networks to differ in the blockchain. However, some of their rules can be shared. Some coins can be exchanged based on other coins.
Why are there different types of digital currency networks?
Currently, there are several digital currency exchange networks, some of which are more profitable. However, if you wish to operate, trade, or invest in the cryptocurrency market, you should be familiar with the most popular of these networks. You might think that cryptocurrency transfers would be easier if there was just one network rather than different digital currency systems. But at the moment, since each blockchain network has its own rules and protocols, the tokens placed on each network’s platform are different from other networks. Currently, the only way left for activists in this field is to learn about the types of digital currency networks and choose the right digital currency transfer network for their work.
How is ERC-20 created?
There are several smart contracts in the cryptocurrency world. For money to be bought on a digital currency exchange like New Money, the developers of the exchange must be connected to a smart contract with proprietary coding. If this connection is not made, the corresponding digital currency cannot be used on that exchange. Did you know that there are many different digital currencies in the world of digital currencies? There are different covenants in this new world. Instead of using all these contracts, a standard called erc-20 was created for the convenience of program development on the blockchain. The timely creation of this standard has positively impacted the future of Ethereum.
What is the ERC-20 standard?
ERC-20 is the standard required to create exchangeable tokens and implement smart contracts based on the Ethereum blockchain and the Ethereum Virtual Machine (EVM). Indeed, tokens that do not benefit from a dedicated blockchain can operate on the ERC-20 platform. Simply put, ERC20 is a set of rules and regulations that help create a smart contract with tokens on the Ethereum platform. ERC-20 tokens can be stored in wallets that support Ethereum. Because any ERC-20-compliant token is also compliant with Ethereum rules and is supported in the Ethereum wallet. It has made it so simple that anyone can create their token on the Ethereum blockchain. There are even references that help users create their tokens online using the erc-20 standard.
What is the BEP20 network?
The word BEP20 stands for Binance Smart Chain Evolution Proposal 20, which is called the Binance Smart Chain network. This network is similar to the Binance blockchain and is designed to create smart contracts and its role is to make it more compatible with Ethereum. The network aims to offer users low transaction fees by generating blocks quickly. Using this network, smart contracts are implemented without increasing congestion and traffic. Therefore, using this network, investors can move similar Ethereum assets to Binance Smart China (BEP20 token) in less time and with lower fees.
This feature is not intended to compete with or replace Ethereum. BSC is the only blockchain compatible with Ethereum and is designed to provide users with more features such as faster block creation, lower transaction fees, and more. Thus, users can transfer the same assets (ERC20 tokens) to Binance Smart China (BEP20 tokens) in less time and at lower fees. These tokens are called pegged tokens.
BEP20 network feature
There are several important features of the Binance Smart China network, namely:
- Binance Smart China network fees are low.
- It is possible to transfer between the chains of this network and the Binance China network.
- Various tokens related to this network
- By using Binance Smart China, the speed of transactions increases, and transactions and money transfers are carried out quickly on this network.
- Support for various wallets in the Binance smart chain network
- The addresses of this network start with the letter ox.
difference between BEP-20 and ERC-20?
The most popular tokens today are ERC20 tokens based on the Ethereum blockchain.
- ERC-20: A technical and engineering standard for smart contracts on the Ethereum blockchain for tokens.
- BEP 20: represents the standard token in the Binance smart chain.
For example, if you select the BEP20 network as the transmission network and transfer the ERC20 token to it, the hash of the transaction can be viewed and verified in the Binance Smart Chain (Bsc) browser, not in the Ethereum browser. Because you have made a transfer on Binance Smart Chain. So, when depositing and withdrawing, make sure you select the network you want correctly. Make sure you are using a network that the target wallet supports or you may lose your money.
What is the token standard?
Before discussing the difference between BEP20 and ERC20, knowing the token standard is necessary. Tokens are not the same as standard tokens, but a lot of people accidentally use both. Tokens are cryptocurrencies that have multiple functions within the blockchain network and are unique to the blockchain. Some uses for tokens are:
- Get digital assets like collectibles and game credits
- Eligibility to vote on different platforms
- Facilitates transactions on the blockchain, such as sending and receiving payments
A token standard is a set of rules that define how a token will work on a particular network. This standard may include technical specifications such as programming languages for token functions. as well as business rules such as specific token functionality within the network. Businesses can use the token protocols of other blockchains and develop their tokens based on them before developing their blockchain. Then, when they develop their blockchain, they can transfer the token to their blockchain.
Token standards help establish rules that define the names and format of tokens. It is important because they guarantee how the tokens are exchanged by the parties involved. There are currently several major token standards including BEP2, BEP20, and ERC20 and….
How to convert the ERC20 token to BEP20
We will use the burgerswap.org bridge to transfer tokens from Ethereum Blockchain (ETH) to Binance Smart Chain (BSC). The BurgerSwap bridge allows users to easily convert any ERC20 token into a wrapped broken (BEP20) on the Binance Smart Chain network. This bToken package can then be listed on BurgerSwap for trading and issuing funds. The BurgerSwap bridge can also extract bTokens from any ERC20 token and list them in BurgerSwap. bTokens are on-chain collateral tokens issued on the Binance Smart China network. If you have never used BurgerSwap or any app on Binance Smart Chain before, you should know that you need to set up your Metamask wallet for Binance Smart Chain first.
Transfer ERC20 or BEP20 to Metamask wallet
To learn how to transfer ERC20 tokens to BEP20, we will use the Metamask wallet. In this wallet, the Ethereum network is available and does not need to be added; But the Binance Smart Network should be added to this wallet. For this we take the following steps; First, open your Metamask wallet and click on the Custom PRC option; Follow the steps below to transfer a fictitious token, for example, ROOBEE, from the Ethereum blockchain to BSC.
Log in to burgerswap.org, connect your wallet to the site, and then connect your Metamask to the Ethereum network. In the next step, go to the “Bridge” tab and select the Token you want and enter the value of the Token you want to convert. For example, we chose the ROOBEE token for this tutorial, and enter the smart contract address of this token in the “Select token” field.
To convert the desired token, you must enter the amount and confirm the transaction. Click the “Accept” button and the “Generate Cross Chain Resources” button to confirm. After choosing the two options Accept and Create a cross-chain advantage, remember that at this stage, the fees will be received in the form of Ethereum, because we are still connected to the Ethereum network.
After confirming in the previous step, go to your MetaMask wallet and switch to the currently connected network to Binance Smart Chain.
After connecting MetaMask to the Binance Smart Chain network, you can receive your tokens on the BCS network. To do this, you can start the transfer process by clicking the “Get” button at the bottom of the page.
BurgerSwap charges an additional fee of approximately 0.05 BNB to process the transaction. Please make sure you have enough BNB in your wallet on the BSC platform to receive the token you need in the specified size and quantity.
Add the symbol you want, which here is ROOBEE, to your wallet on the BSC line. To do this, go to the Metamask wallet and click “Add token”. Then select “Custom Token”, paste the smart token contract address into the BSC network, and click “Next”. After doing this, your tokens transferred from the Ethereum blockchain to BSC will be displayed in your wallet.
Exchange ERC-20 and BEP20 tokens on a centralized exchange
Another way to convert these two tokens into each other is by using centralized exchange services like the Binance Exchange. To do this, transfer the chosen token to the Binance exchange on the ERC-20 network and exchange your token there for an active token on the Binance Smart China platform, such as the XVS token, and then transfer your digital asset to the wallet. In simple words, if you have BUSD from the Ethereum network, you can convert it to BUSD from the BEP20 network through Binance and then transfer it to the Metamsk wallet without paying additional fees.
Create your own Bep20 Token
Creating tokens based on the Bep20 standard is attractive to many users. Any user can create a label based on the Bep20 standard, subject to certain conditions and requirements. For this, he must first choose the blockchain he wants to create a token (which is BSC here). Then consider a Proof of Stake (POS) consensus mechanism to generate tokens. After these cases and with the design of the blockchain architecture, it is time to develop the smart contract. If you do not have expertise in this area, you can ask blockchain experts for help. To create a token based on the Bep20 standard, you must be familiar with the Solidity programming language. Also, it is necessary to cooperate with the remix development website. This online tool helps develop and improve smart contracts.
Finally, as mentioned about the difference between BEP20 and ERC20, the two differ in various dimensions and it can be said that BEP20 has more features than ERC20. This is because BEP20 is based on ERC20 and was intended to evolve ERC20. However, although BEP20 offers higher speed and lower transaction fees, ERC20 is a better choice in terms of security. So if security is very important to you, ERC20 is better than BEP20. Also, it is important to note that your wallet supports this token address when you buy Ethereum or any other cryptocurrency issued with ERC20 tokens.