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BEP-20 - Indodax Academy

As technology continues to develop, Binance Smart Chain has spawned the BEP-20, which is also often used as the standard token. This BEP-20 network is also used by many tokens, examples of which are:

  1. SHIB, Shiba Inu aims to be an Ethereum based partner for Srypt Dogecoin based mining algorithm. The Shiba Inu and SHIB tokens are part of a collection of dog-themed crypto assets, including Baby Dogecoin (BabyDoge), Dogecoin (DOGE), JINDO INU (JIND), Alaska Inu (LAS) and Alaskan Malamute Token (LASM).
  2. CAKE, PancakeSwap is an automated market maker (AMM) — a decentralized finance (DeFi) application that allows users to exchange tokens, provide liquidity through farming and earn fees in return.
  3. BAKE, BakeryToken is part of the BakerySwap ecosystem. Liquidity providers are rewarded with BAKE tokens which can be used to earn a share of BakerySwap trading fees and to participate in voting as part of the BakerySwap governance process.

Of course, both the ERC-20 and BEP-20 standardization networks have their advantages and disadvantages.

In the ERC-20 network, although it has a number of advantages such as easy to use, flexible, widely accepted, and can remove fake tokens, the ERC-20 network also has several disadvantages, including: unstable, expensive transaction fees, and more transactions. slow.

In comparison, Binance Smart Chain uses the Proof-of-Staked-Authority method which offers BEP-20 transaction execution speeds, which are faster than ERC-20, and have lower transaction fees. The average transaction nominal on the BEP-20 is no more than a few cents. Meanwhile, the average ERC-20 transaction fee can reach around US$12.

However, although the BEP-20 token offers significantly lower nominal transaction fees and faster processing times, Binance Smart Chain’s PoSA validation model has in fact been criticized by some, due to potential security flaws.

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