Binance Smart Chain was designed to be compatible with the Ethereum Virtual Machine (EVM), and as such BEP20 tokens would have increased versatility when interacting with the growing number of DApps across the chain.
Another key benefit of BEP20 is the gas fees, which is significantly cheaper in comparison to Ethereum. An average transaction using BEP20 tokens would likely cost no more than a few cents. In comparison, the average ERC20 token transfer gas fee was slightly over $100USD at the start of 2022.
BEP20 transactions are also much faster when compared to ERC20 transactions. Though individual transaction speeds may vary depending on various factors, the average block verification times on BSC are 3 seconds, and close to 15 seconds for Ethereum (1.0)
As an expert in blockchain technology and cryptocurrency ecosystems, my knowledge spans various platforms, including Binance Smart Chain (BSC) and Ethereum. I've closely followed the development and evolution of these blockchain networks, allowing me to provide valuable insights into their features and capabilities.
The article you've presented discusses the advantages of BEP20 tokens on Binance Smart Chain, emphasizing their compatibility with the Ethereum Virtual Machine (EVM) and the resulting increased versatility for decentralized applications (DApps) across the BSC. Let's delve into the concepts mentioned in the article:
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Binance Smart Chain (BSC):
- BSC is a blockchain network created by Binance, one of the largest cryptocurrency exchanges globally. It was designed to provide a fast and low-cost alternative to Ethereum for decentralized applications and token transactions.
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Ethereum Virtual Machine (EVM):
- The EVM is a runtime environment for smart contracts in Ethereum. BSC's compatibility with EVM means that developers can easily port their Ethereum-based applications and tokens to BSC without significant modifications.
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BEP20 Tokens:
- BEP20 is a token standard on the Binance Smart Chain, similar to Ethereum's ERC20 standard. It defines a set of rules that a token must adhere to, enabling compatibility with the BSC ecosystem.
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Gas Fees:
- Gas fees are the transaction fees on blockchain networks. The article highlights that using BEP20 tokens on BSC incurs significantly lower gas fees compared to Ethereum. This is a crucial advantage for users, as lower fees make transactions more cost-effective.
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Transaction Costs:
- The article mentions that an average transaction using BEP20 tokens on BSC would likely cost no more than a few cents. In contrast, the average gas fee for ERC20 token transfers on Ethereum was noted to be over $100 USD at the beginning of 2022. This stark difference underscores the cost efficiency of BSC transactions.
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Transaction Speed:
- The speed of transactions is another crucial factor. The article states that, on average, block verification times on BSC are 3 seconds, while it takes close to 15 seconds for Ethereum (1.0) transactions. This faster transaction confirmation on BSC enhances the overall user experience.
In summary, Binance Smart Chain's compatibility with the Ethereum Virtual Machine, the use of BEP20 tokens, lower gas fees, and faster transaction speeds collectively contribute to making BSC an appealing platform for developers and users alike, especially in comparison to Ethereum.
