Cryptocurrency

What is coinbase bep20 and how does it work?

The bep20 is a Binance smart chain token standard designed to extend the ERC-20, one of the most common Ethereum token standards available. The BEP-20 is a plan that shows how a token can be spent, who can spend it, and even has rules for its general use.

bep20

The BEP-20 standard is both derived from and fully compatible with the ERC-20 standard, and the functional code that defines the BEP-20 standard is an amendment to the ERC-20 standard.

These changes have been made to improve the protocol while optimizing its speed as well as transaction costs. In fact, the BEP-20 was intended as a technical specification for the Binance smart chain with the aim of providing a flexible format through which many developers can launch different tokens. These tokens can show anything, from stocks of a business to dollars, which are stored in a bank box like a Stable Coin.

You can create a native asset as a BEP-20 token and even tokens from other blockchains to use in the Binance smart chain. Creating a BSC token is easy, and the tokens conform to a standard known as BEP020, which guarantees the token’s initial performance, such as transfer, return inventory, view token ownership, and more.

Coinbase is a digital currency trading and investment platform that allows users to buy, sell and exchange more than 100 tradable digital currencies such as Bitcoin, Ethereum and Dogecoin. Coinbase is a large company with over 73 million users and $255 billion in assets on this platform.

Beginners will probably prefer the main Coinbase platform for simple buy and sell orders. More advanced users can access additional features and orders through Coinbase Pro, which is available to every Coinbase user.

Cryptocurrencies are a relatively new asset class that can be risky and volatile, which is not suitable for all investors. However, if you are interested in digital currency, Coinbase is a great option for beginners and veterans.

Understanding Binance Smart Chain tokens (bep20)

To understand BEP20, let us first look at the features of the Binance smart chain and why it was created. Simply put, the Binance Smart Chain, or BSC, is a blockchain built to execute smart contracts. Together or in parallel with Binance, the first Binance blockchain used in its offline exchange works.

The Binance Chain is built with one thing in mind: Optimizing for fast trades on the Binance non-guard platform. By learning from other Ethereum-based projects before him, Binance focused on avoiding network congestion in his design. Thus, the binance chain, by setting aside advanced capabilities, can perform a high transaction without slowing down. Because of this optimization, the binance chain is not flexible enough to support the launch of a full-fledged DEX (decentralized exchange). Binance realized that they had to build a new chain to specifically build smart contracts that automate transactions. Therefore, Binance created the Binance Intelligent Chain (BSC) for this purpose. The BSC now serves as the basis for its decentralized exchange or DEX project.

The relation between Coinbase and bep20

Coinbase does not currently support Binance Chain (BEP-20) because it is a separate blockchain that is not integrated with our platform. BEP-20 is a blockchain created by Binance specifically for its customers to ship assets faster. Any deposit sent from the Binance chain to the Coinbase account will not be credited and your funds will be forfeited. For example, we support ERC20 tokens such as USD Coin (USDC) in the Ethereum network. If you send the USDC to Coinbase in the BEP-20 chain, you will lose your capital because it is on a separate network.

How does bep20 work?

Creating a BEP-20 token is fairly straightforward, even if you have no previous programming experience. CoinTool provides an intuitive interface for creating your BEP-20 tokens. To create a BEP-20 token successfully, you just need to enter the token name, an icon and a few other parameters.

Now let us briefly discuss these parameters to better understand the BEP-20 token standard:

Can Burn – This parameter determines whether BEP-20 tokens can be burned to reduce supply over time and reduce inflation.

Can Mint – This parameter is the opposite of Can Burn and specifies whether new BEP-20 tokens can be multiplied to increase supply over time and cause inflation.

Can Pause – This parameter is very important in case of malicious attack or software vulnerability. Specifies whether all operations related to your tokens can be stopped if needed. Only the creator of a sign or an address with the necessary permission can stop all operations.

Blacklist – This parameter is similar to Can Pause. This allows you to blacklist certain addresses that are malicious. Both of these parameters give a lot of control to the central authority (creator), so they will not be suitable for many uses.

Once all the parameters are specified and the token is generated, you will have full ownership of the token and will be paid at your specified address. The smart token contract is automatically issued to BSC and you only have to pay the required transaction fee.

BEP-20 against other tokens

There are many programmable blockchain platforms with the ability to execute smart contracts, and each has a different token standard. This section compares the BEP-20 with two of the most prominent and advanced token standards available today: the ERC-20 and the BEP-2.

BEP-20 vs. ERC-20

The BEP-20 and ERC-20 token standards have many similarities. The BEP-20 is an extended version of the ERC-20 standard and has similar functions for providing basic elements such as token issuance, token transfer and ownership. Binance recently introduced a chain bridging service called Binance Bridge, which provides interoperability between different blockchains. The project currently supports cross-chain transmissions for ERC-20 and TRC-20 tokens.

With Binance Bridge, you can convert your native cryptographic assets to BEP-2 or BEP-20 tokens. Let us illustrate this with the following example: If you transfer the ERC-20 Stablecoin to the BSC, the Binance Bridge performs cross-chain conversion, from the ERC-20 to BEP-2 / BEP-20 tokens, which can be used in bot Binance Chain or DApps running on BSC.

Binance Bridge does not charge any conversion fees and you only have to pay the costs of the related Blockchain network for the transaction. You have to be a little patient to become one because it takes a few minutes.

FAQs

What happens if we send our BEP20 to Coinbase exchange?

BEP20 is a blockchain created by Binance specifically for its customers to ship assets faster. Any deposit sent from the Bainance chain to the Coinbase account will not be credited and your funds will be forfeited.

Does Ethereum BEP20 works on Coinbase?

BEP20 tokens have the same address format as Ethereum and have the same features as the ERC20 standard. However, they are not the same. BEP20 tokens are on a separate network that Coinbase does not currently support.

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