What is a Token Standard?

Every crypto-token that is created on a blockchain has to be based on a framework or a Token Standard, which is a set of rules and guidelines that all tokens on that particular framework must follow. Different blockchains have different token standards, which means a token on a particular blockchain will be different from a token on a different blockchain. Everything on a blockchain, from smart contracts to DApps, wallets and exchanges must follow the particular token standard so that everything in the network can work smoothly.

ERC-20, which is one of the most popular token standards, is an Ethereum token standard that provides rules and guidelines for ERC-20 tokens. BEP-20 is a token standard for the Binance Smart Chain (BSC) and provides rules for BEP-20 tokens.

BEP-20 is more efficient, low-cost and secure in comparison to ERC-20, which is the reason why Libra is migrating to the Binance Smart Chain.

Binance Smart Chain and BEP-20 Standard
Binance Smart Chain (BSC) is a blockchain platform with similar functionalities and features as the Ethereum blockchain. It works in parallel with the Binance Chain, which is the native blockchain for the Binance Exchange and Binance Coin.

Since BSC is fully compatible with Ethereum but more efficient, it allows developers to seamlessly migrate from Ethereum to the Binance Smart Chain. In addition, the blockchain supports all the tools and features that are supported by Ethereum. However, unlike Ethereum which uses the Proof of Algorithm (PoA) consensus mechanism, BSC uses the Proof of Staked Authority (PoSA), which is a more efficient variant of the PoS algorithm.

BEP-20 is a token standard on the BSC that was designed to extend the features of Ethereum’s ERC-20 standard. It is fully compatible with both ERC-20 and BEP-2 token standards. All tokens on the BSC platform, including stablecoins and security tokens, are governed by the BEP-20 token standard.

As the native coin for the Binance Chain, BNB is used as the default payment system for the transaction fees across all BEP-20 tokens, including the Libra Coin.

How is BEP-20 better than ERC-20?
Binance Smart Chain is a programmable blockchain platform with the ability to run smart contracts, the same as Ethereum. However, there are many significant differences between the two top token standards - BEP-20 Vs. ERC-20.

BEP-20 Vs. ERC-20

As an extended version of the ERC-20 standard, BEP-20 enjoys many similarities with its counterpart. For instance, many functions such as token issuance and transfer are executed in the same way on both blockchains.

As for the differences between the two blockchains, the Binance Chain is said to be more efficient than Ethereum since it employs an advanced Proof of Staked Authority consensus mechanism, which allows much faster execution of blocks and transactions. The average block time on the BSC is said to be 3-second, which is much more efficient compared to Ethereum’s average block time of 10-19 seconds.

Because of fast execution time, the fee per transaction on the BSC network is also lower as compared to the transaction fee for ERC-20 standard tokens.

Also, the Binance Smart Chain supports interoperability between different blockchains through a feature called the Binance Bridge. This allows BEP-20 tokens to be transferred with ERC-20 and other popular token standards.

Now that Libra Coin has been moved to the Binance Smart Chain (BEP-20 token standard), we expect a faster block execution time with a lower per-transaction cost. This is expected to benefit our investors and users greatly in the coming days. For more information visit the official website: https://libraecosystem.com

You can start trading Libra Coin (LC) here: https://www.xt.com/tradePro/lc_usdt