Definition
BEP-20 is the tokenization standard used to facilitate the transfer of BNB Smart Chain tokens (previously Binance Smart Chain) operating on the BNB Smart Chain.
Understanding the Term
Think of BEP-20 as a set of regulations dictating the token’s overall usage and how it can be traded. It was created with the aim of allowing developers to launch different tokens through an adaptable version. This is why BEP-20’s addresses are nearly identical to their Ethereum ERC-20 address counterparts, meaning that BNB Smart Chain tokens are interoperable with the Ethereum network.
This is an important feature that potentially allows for the transfer of tokenized assets and other data across other blockchain protocols like Cardano and Polkadot.
Takeaway
Leading crypto assets on other chains can be transferred to the BNB Smart Chain in the form of pegged BEP20 tokens.