BEP 2 or Binance Chain Evolution Proposal 2 is a technical standard used for the issuance and implementation of tokens on the Binance chain.
In 2019, Binance, one of the largest cryptocurrency exchanges, announced that it had completed creating a Binance chain, a blockchain project.
BEP 2 was launched in 2019, making it the youngest token standard after ERCO-20 and NEP-5. The standard is not software but a set of technical specifications. It defines a set of rules that tokens should follow to function in the Binance chain ecosystem.
Here are two instances where BEP 2 has been used in mainstream media;
- “Crypto.com adds Binance coin (BEP 2) to crypto earn.”
(PR Newswire , August 6, 2019)
- “Binance moves to BEP-2 standard burns all BNBs based on ERC-20.”
(FXSTREET, May 7, 2019)
BEP 2 tokens are tradable assets. You can trade the tokens on Binance DEX, a decentralized exchange running on top of Binance. Binance DEX is still the only exchange where you can trade BEP2. More exchanges are yet to adopt the tokens.
The Binance chain has a native token known as BNB, used to pay for transactional fees. If you wish to transfer your BEP2 tokens, you’ll need some BNB in your wallet.
Before the Binance chain, BNB was built on the Ethereum blockchain, where most tokens are built, using the ERC20 standard. With the Binance chain transition, the native token is built based on the BEP 2 standard. Up to the Binance chain launch, BNB was the most valuable token on the Ethereum blockchain.
Like any other tokens, BEP 2 tokens can be stored in many different wallets. For software wallets, Trust wallet is an excellent option for storing BEP 2 tokens. You have Ledger Nano X, Ledger Nano S, Trezor Model T, and Coolwallet S for hardware wallets.
Binance Chain, the technology behind BEP 2, uses a combination of Delegated Proof-of-stake (DPos) and Practical Byzantine Fault Tolerance (pBFT) for block mining on the chain. The two consensus algorithms are a better alternative to the energy-consuming Proof-of-work mechanism.
The benefits of the Binance chain have seen several blockchain projects transition their tokens or a portion of their token supply to BEP 2. Bitcoin, for example, has a BEP 2 version (BTCB). BTCB is a Bitcoin-pegged token on the Binance chain.
With BTCB, holders can trade the tokens for other tokens on Binance DEX. Holders also have the option to swap BTCB for regular Bitcoin on Bitcoin’s main exchange.
Besides, Bitcoin several Stablecoins, including TrueUSD and Stably, have brought their operations to the Binance chain. Other blockchain projects that have jumped on to the Binance chain include Mithril, Harmony, Aeron, Red Pulse, and Gifto, a blockchain project for live streaming and crypto gaming.
Currently, there are more than 120 assets listed on the Binance chain. Every day more blockchain projects keep announcing their transition to the Binance chain.
Even though still new, the BEP 2 token protocol is already proving a force to reckon with in the crypto space. It is already giving the old ERC20 protocol a run for its money.