ERC20 vs BEP20: Key Differences Explained
ERC20 vs BEP20 is the most common standards comparison when deciding where to create your tokens. A project can only scale and succeed as far as the blockchain it is built on allows. Each standard has its own strengths, making it a better fit for different use cases.
Want to understand the difference between an token ERC-20 and BEP-20? Whether you want to trade, create your own cryptocurrency, or compare the benefits of each standard, the comparison table below sums up both options. Still, read to the end to understand the full details.
| Característica | ERC-20 | BEP-20 |
|---|---|---|
| Blockchain Network | Ethereum, Base, Polygon, Blast, Arbitrum, Avalanche… entre otros | BNB Smart Chain (BSC) |
| Tarifa de transacciones | Alta para Ethereum | Baja |
| Velocidad de transacciones | Lenta para Ethereum (12-15 segundos) | Rápida (3 segundos) |
| Descentralización | Ethereum es una red descentralizada | Centralizada (pertenece a Binance), pocos validadores |
| Consolidación | Muy consolidado, desarrollo muy apoyado | Creciendo rápidamente, Binance está detrás de BSC |
| Compatibilidad | Compatible con otras redes Ethereum como Base, Polygon… etc | Compatible con el estándar de Ethereum, por lo que se integra a ERC-20 |
| Escalabilidad | Adaptación progresiva al Proof of Stake | Diseñado para ser escalable |
| Principales usos | DeFi, NFTs, ICOs y creación de tokens | DeFi, NFTs, gaming, dApps con bajos costos de transacción |
| Herramientas y documentación | Se puede encontrar mucha documentación y herramientas de la comunidad | Tiene menos documentación, se apoya de herramientas EVM |
What Is ERC20?
ERC-20 is the token standard on the Ethereum network. In simple terms, it is the rule set every token must follow to be part of the Ethereum ecosystem. This helps ensure tokens can work across DeFi protocols, DEXs, wallet integrations, and dApps.
On the other hand, even though Ethereum is the most successful network with the largest user base, there are other blockchains built around this ecosystem that offer lower fees and faster transactions. Examples include Base, Polygon, Arbitrum, Avalanche, and Blast. That makes ERC-20 a format that is compatible with these other blockchains as well.
What Is BEP20?
BEP-20 is the standard used by BNB Smart Chain (BSC), Binance’s centralized blockchain and the largest exchange in crypto. Like ERC20 tokens, it defines the rules for asset minting and distribution. In this case, BEP20 is compatible with ERC20.
Although it depends entirely on Binance validators, BEP20 is a widely used token standard that is secure and reliable.
You can create a BEP20 Token on BSC here.
ERC-20 vs BEP-20: Key Differences
Now that you know what BEP-20 and ERC-20 are, let’s break down their biggest differences.
Transaction Fees
This matters a lot, because high gas fees can be enough to stop buyers from completing a purchase.
ERC-20
On Ethereum, transaction fees get expensive when the network is congested, which happens often.
BEP-20
BEP20 tokens come with low fees, making them a strong option for almost any type of project.
Compatibility
In short, ERC20 and BEP20 can work together when you use a bridge between them. That is why many dApps and DeFi platforms support both standards equally.
ERC-20
The standard is compatible not only with Ethereum, but also with Base, Arbitrum, Polygon, and others built on the Mainnet.
BEP-20
Designed to be compatible with ERC-20
Transaction speed
Transaction speed is a key factor, and it is also one of the areas where the differences between BEP20 and ERC20 become clear.
ERC-20
You can move BEP-20 tokens through a bridge.
BEP-20
You can also use a bridge to interact with ERC-20 ecosystems and dApps.
Decentralization
The main appeal of blockchains is that, by design, they are decentralized technologies (they do not rely on big companies or banks).
ERC-20
Ethereum is a fully decentralized network.
BEP-20
It is centralized because it relies on Binance and its validators.
Popularity
Higher usage means broader adoption, more traffic, and a better chance for projects to get visibility.
ERC-20
Most established projects use the Ethereum token standard.
BEP-20
Its popularity keeps growing, but it still has not overtaken the competing standard.
Market maturity
The difference between Ethereum and Binance, when it comes to their blockchain networks, also comes down to how established each one is.
ERC-20
An older, far more established standard.
BEP-20
It’s less widely used because it’s a newer standard.
Use Cases
The difference between Ethereum and Binance, when it comes to their blockchain networks, also comes down to how established they are.
ERC-20
DeFi, NFTs, ICOs, dApps, and meme coins.
BEP-20
DeFi, NFTs, gaming, dApps, and meme coins.
Scalability
In its early days, Ethereum used Proof of Work to validate transactions, but the computational load kept increasing, which made scalability expensive and inefficient. Today, with Ethereum 2.0, Proof of Stake is being adopted to make the ERC20 standard more scalable.
ERC-20
Still transitioning to Proof of Stake.
BEP-20
Built to be fully scalable.
ERC20 vs BEP20: Which One Is Better?
Now that we know the main traits of each one, we can draw a conclusion on which token standard is better. Of course, it depends entirely on your goals and budget when you decide to create your own cryptocurrency. In short, this is the better standard if:
- You want to operate in a decentralized environment: ERC-20 is the better choice.
- You want to keep fee payments as low as possible: BEP-20 is the better fit.
- You care about network efficiency for transactions: BEP-20 and BSC offer faster processing times.
- You plan to use tokens across multiple dApps and DeFi platforms: both ERC-20 and BEP-20 are supported by major crypto platforms.
- You are preparing for a large-scale project: BEP-20 is especially scalable, while ERC-20 is also adapting through Proof of Stake.
- You want to build on the most widely adopted technology: Ethereum and its derived networks see the most usage.
- You care about building with stronger tools and documentation: ERC-20 has deeper documentation and more resources for professional development.
Can I send BEP-20 tokens to an ERC-20 wallet, or the other way around?
In short, no, you can’t send BEP-20 tokens to an ERC-20 wallet, or the other way around. To move tokens between networks, you’ll need to use a bridge. These tools let you switch between ERC-20 and BEP-20 tokens. Binance has its own bridge.
Which stablecoins are available on ERC-20 and BEP-20?
Both ERC-20 and BEP-20 have well-established stablecoins. Tether (USDT) and USD Coin (USDC) use the ERC-20 standard. Meanwhile, BSC has BUSD, the leading BEP-20 stablecoin on this standard.
How can I boost my ERC-20 and BEP-20 token?
You can now boost your token ERC20 with the Ethereum Market Maker, helping you refresh your token position and get visibility plus organic traffic faster.
We also recommend checking out our guide to using the Binance Volume Bot, which works with all BEP20 tokens.
Can ERC-20 transaction costs be reduced?
Ethereum is the network that uses the ERC20 standard, and all of its tokens are subject to network fees. That said, some layer 2 blockchains also use the same token format while offering lower fees and better efficiency.
Still, these alternatives are centralized and are not as widely used as Ethereum. We have mentioned several of these layer 2 blockchains before, but Base and Polygon are the most popular.
Conclusion
When you look at the differences between ERC20 and BEP20, the gap in fees and transaction speed becomes clear. Each standard has its pros and cons, but both are solid options for building a crypto project. Use this information to choose a blockchain and start operating on it.
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Content creator and SEO contributor at Smithii. Systems Engineering student and crypto-tech enthusiast.
