BEP20 Token Development Services — Benefits & Use Cases
With the increasing use of digital tokens for various purposes such as fundraising or processing DeFi applications, Token development has become one of the most trending services at the moment. And in token development, BEP20 token development services stand up front!
But why is BEP20 token development so popular? What is the benefit of BEP20 token development and what are the use cases of BEP20 tokens?
If you also have all these questions in your mind, this blog will be your key to all the answers! In this blog, we’ll be exploring what the BEP20 token is, what are the various benefits of BEP20 token development, and where BEP20 tokens are being used.
So, without further ado, let’s get started!
What is BEP20 Token
If you are any little into the cryptocurrency world, you must have heard of the name – Binance. Binance is arguably one of the world’s most popular cryptocurrency exchanges. A BEP20 token is a digital asset developed by Binance that operates on its blockchain network, Binance Smart Chain a.k.a BSC.
Much like the ERC-20 standard token name on the Ethereum blockchain, BEP20 stands for the standard token asset used on the Binance Smart Chain.
The creation, allocation, transfer, and interaction of BEP20 tokens are governed by the rules and regulations formed by the BEP20 standard. These rules are thoroughly responsible for how a BEP20 token would interact with other smart contracts on the Binance Smart Chain network.
The BEP20 standard is also accountable for the seamless and convenient trades of BEP20 tokens across different platforms, all while ensuring the compatibility of different BEP20 tokens. Launched in the year 2020, BEP20 token standards are majorly used for forming a framework base for developers.
Benefits of BEP20 Token Development
Intrigued by how BEP20 tokens work? Let’s go through some really amazing benefits of BEP20 token development to understand them better –
Seamless Decentralized Exchanges Listing
In order to maintain the liquidity as well as the accessibility of a token, it is quite important to list your token on Decentralized Exchanges (DEXs). BEP20 token, being a token standard from one of the most popular and reliable smart chains, BEP20 tokens easily gets listed on the Decentralized Exchanges. Getting listed on DEXs means that now you will have a broader customer base to trade your tokens.
Low Transaction Fees
If you have a project that includes numerous microtransactions or even high-volume transfers, BEP20 tokens will surely be an ideal choice due to their low transaction fees. Comparatively, BEP20 token transactions on the Binance Smart Chain are highly cost-effective.
Robust Interoperability
Interoperability refers to the ability of tokens to operate in conjunction with each other and exchange easily within the blockchain. BEP20 is highly compatible with the Binance Smart Chain network. Therefore, it is quite easy for them to form an interaction with other BEP20 tokens as well as decentralized applications. Consequently, it helps in cross-platform integration.
Vast Community
One of the major factors behind a successful digital token project is the community support at the back. Binance arguably has one of the largest cryptocurrency communities of blockchain developers and enthusiasts in the world, offering great community support for BEP20 projects.
Comparatively Low Carbon Footprint
The majority of the blockchains present right now use the Proof-of-Work (PoW) mechanism for their operation which is quite high in energy consumption. On the contrary, the Binance Smart Chain takes aid from the Proof-of-Stake (PoS) mechanism which is comparatively more energy-efficient and produces a lower carbon footprint.
BEP20 Token Development Use Cases
Enough of the benefits, let’s understand how BEP20 tokens are being used in the cryptocurrency and blockchain world –
Gaming and NFT Industry
One of the most popular use cases of BEP20 tokens on the Binance Smart Chain is around Non-Fungible Tokens (NFTs) and Game development. Various digital artworks, game items, and collectibles are made using the BEP20 tokens to create NFTSs.
Popular NFT marketplaces such as BakerySwap and Binance NFT Marketplace offer a vast and convenient marketplace to trade BEP20-based NFTs.
Decentralized Finance (DeFi)
Another major use case of BEP20 tokens on the BSC network is the Decentralized Finance ecosystem as BEP20 tokens serve as the key foundation for the DeFi ecosystem on the BSC network. Multiple financial operations on the BSC network are processed by BEP20 tokens including DEXS, yield farming, lending protocols as well as liquidity provision.
Two major factors that make BEP20 one of the most convenient tokens for DeFi activities are low transaction costs and a fast confirmation rate.
Token Fundraising
BEP20 tokens are popular for their usage in Initial Coin Offerings (ICOs) and Initial DEX Offerings (IDOs) as one of the most offered tokens. They are generally used by start-ups or budding entrepreneurs/companies as a token offering in exchange for raising funds for their projects. Moreover, wide community support of BEP20 tokens helps to reach out to a global audience of potential investors.
Parting Words
Coming to the end, it’s quite evident that BEP20 token development is a very beneficial project if developed correctly. However, a major mistake that many make while doing such complex projects is not seeking professional expert help.
Even tho, the development of a BEP20 token seems like an easy task at first glance, without the help of a professional BEP20 token development company, your project vision might not reach where you want it to be.
Enter Coin Developer India, a leading BEP20 token development company with its expert team of blockchain developers to become your perfect ally in developing a successful BEP20 token!
Connect with Coin Developer India today and bring your BEP20 token vision to life!