There are a lot of acronyms out there in the world of Web3. From NFTs to WAGMI, DEX and DAO’s, it’s essentially a whole new language! While most of them are simple enough to understand after a quick Google search, others reference concepts that may be a lot harder to grasp. One of these potentially elusive concepts is the BEP20 token and if you just said “a bep-what??” then you’re definitely in the right place.
What on Earth is BEP20?
The BEP20 standard was developed for the Binance Smart Chain Platform and is actually an abbreviation of “Binance Smart Chain Evolution Proposal.” Originally, the Binance Chain was used to facilitate the optimization of fast, decentralized trades. Although it served its purpose as a decentralized exchange platform, the Binance Chain lacked the flexibility that smart contracts had brought to other platforms like Ethereum. To avoid congestion and slow speeds, the Binance Smart Chain (BSC) was developed to run parallel to the Binance Chain. Parallel, meaning it is not a sidechain or Layer-2 solution, but an independent system that can continue to run even if the original Binance Chain was discontinued. The BSC is able to handle smart contracts and uses the BEP-20 token standard (which extends Ethereum’s ERC-20 standard) to facilitate the movement of value and the tracking of activities on the blockchain. BEP20 is therefore the blueprint that shows how tokens can be spent, who can spend them and other rules for their overall usage.
At this point, I’m using the word ‘token’ and confusing you further. Let’s take a step back and dive into what that is.
The words token and coin are often used interchangeably in the world of cryptocurrency. While coins are used solely as currency, exchanged for goods or services and running on their native blockchain, tokens are typically used to carry out a utility or to represent an asset, and they run on top of an existing cryptocurrency’s blockchain.
Interestingly, Binance Chain launched their initial token, Binance Coin, on Ethereum. After the introduction of Binance Smart Chain, Binance Coin changed to BNB, which stands for ‘build and build’ and runs on the BSC. The BNB is used to both represent an asset, such as a company share, and to provide a currency value in exchanges. (I know. Not confusing at all.)
In essence, the prime difference between a token and a coin is its utility. While coins are solely used as money to buy and sell items by transferring the coins from one person’s account or wallet to the next, tokens are outright owned by individuals and can have their ownership transferred entirely (think a car title or land deed). Tokens can also be used to grant certain access or permissions (like voting) to users. Cryptocurrencies do not have that function.
Now, there are two methods that can be used to create a BEP20 token. They are either using web applications or developing through coding. When taking into account costs, time and control, each method has its advantages and disadvantages. Let’s take a look at the options.
Creating BEP20 Tokens Through Web Applications
There are two web applications which can be used to create a BEP20 token. They can be found at vittominacori.github.io and cointool.app. The cost of using these methods depends on the features the creator would like to add to their tokens.
This service is located at vittominacori.github.io. It is the cheaper of the two methods, with prices displayed before the creator starts creating. The cost to generate a token ranges from 0 BNB to 4 BNB, excluding gas fees. In order to use this service, you have to have Metamask running in the background on your browser.
The steps to creating a token using Vittominacori is as follows
- Go to vittominacori.github.io
- Select the features you would like for your token — whether the coins are burnable, mintable, have a fixed supply or grants a certain access.
- Add a name and symbol for the token.
- Agree to the terms and conditions.
- Hit confirm.
Congratulations! You have created a new BEP20 token that can be viewed on BSCscan and deployed via MetaMask.
Cointool can be accessed through the link ‘cointool.app’. It can be used to create BEP20 tokens as well as many other crypto tokens. Unlike Vittominacori, Cointool does not display the cost to create a token before adding a crypto wallet and manually adding the features to the token. It is the more expensive option of the two applications.
The method to creating a BEP20 token with Cointool.app goes as follows:
- Go to cointool.app
- Scroll to create token and select BSC(BEP20)
- Connect to wallet
- Select the features for the token
- Click on create token
The token address should appear in MetaMask. There is also an option to put a token up for presale using the address at an additional cost.
Using applications to create tokens is easy and saves the creator a lot of time. However, it costs money every time a new token needs to be created. Some applications may also add unfavorable conditions to the tokens for their services.
Developing a BEP-20 Token
As mentioned above, tokens can also be created from scratch by a developer. As Solidity is a key programming language used in blockchain development, a developer can use it to program the token’s information, add functions and deploy the tokens to the blockchain.
The cost to hire a developer will vary. The skill of the developer may also come into question, as poor coding skills may develop into issues with your token as time progresses.
If you are capable, you could always code one on your own. The token code can be copied from the Safemoon file in GitHub and modified to your specifications.
Developing a BEP20 token may take time, however the cost can widely vary as you have more control over the process and features that go into it.
Ready to Create Your Token?
Using online applications provides a faster but costly solution to token development. Developing, on the other hand, requires time and skill to create a reliable token. While there are not many existing methods to create blockchain tokens, they are becoming less complicated and more accessible as the space continues to grow.
Whether you’re thinking of starting a DAO and issuing an ICO, or simply looking to tap into a new level of functionality with your community on the blockchain, you may want to consider which way is best for you to create your token.
Looking to get into the Blockchain space, create your own NFT or to continue growing your DAO? Unpluggd Digital provides services in on-chain software development including dApp creation, protocol implementation and more.
Reach out to set up a chat so we can get to work on your next project.