How to Develop BEP20 Token on the Binance Smart Chain?

The launch of the BEP20 coin marks a significant milestone in the dynamic landscape of cryptocurrencies. With over 1.1 million unique smart contracts, the Binance Smart Chain (BSC) is rapidly gaining traction

What sets it apart is its seamless integration with Ethereum's established ecosystem and its cost-effectiveness, with transaction fees often being minimal.

The introduction of the BEP20 wallet unlocks a plethora of opportunities for both token development companies and aspiring entrepreneurs. These opportunities range from crowdfunding campaigns to decentralized finance projects and the creation of innovative services.

Mastering the process of creating BEP20 tokens is crucial as it lays the groundwork for a burgeoning decentralized digital economy.

In this comprehensive guide, we'll explore every aspect of BEP20 token creation, equipping you with the technical and strategic insights needed to embark on this journey. So, let's dive in and kickstart this exciting endeavor!

What is Binance Smart Chain?

Binance, a well-known cryptocurrency exchange, introduced a blockchain technology called Binance Smart Chain (BSC). It is designed to support decentralized applications (DApps) and smart contracts, and it runs alongside the Binance Chain.

To achieve quick transaction times and low fees, BSC employs a Proof of Staked Authority (PoSA) consensus method that combines Proof of Stake (PoS) and Proof of Authority (PoA).

Because of its compatibility with the Ethereum Virtual Machine (EVM), blockchain development companies may swiftly convert their Ethereum-based DApps to BSC.

By providing a scalable and effective platform, BSC intends to encourage blockchain ecosystem innovation and the development of decentralized financial (DeFi) applications.

What is the BEP-20 Token Standard?

The BEP-20 token standard is a technical specification on the Binance Smart Chain (BSC) that defines the criteria and functionalities for producing and maintaining tokens.

It is compatible with Ethereum-based tokens because it follows the Ethereum ERC-20 token standard.

The Binance Smart Chain streamlines the creation, transfer, and management of BSC wallet addresses, allowing developers to launch their own digital assets and decentralized applications (DApps).

In addition to providing a common architecture for token manufacturing and ensuring compatibility across diverse apps such as Bitpay inside the BSC ecosystem, the standard specifies functionality such as token transfer, approval, and balance querying.

Must-Know Market Stats about BEP20 Token on the Binance Smart Chain

• According to Statista, the native coin from BNB smart chain, originally known as BSC, had a 50% increase in price towards the end of 2021 but a significant decline in 2022.
  
  
• On February 25, 2024, a single Binance Chain crypto was valued at around $381.93, a notable drop from its peak of $600 in November 2021.
  
  
• Despite the decrease, Binance Chain ranked among the top 10 most valuable cryptocurrencies in 2022.
  
  
• It's worth noting that the price surge of BNB in November 2021 mirrored a similar trend for Ethereum (ETH), the cryptocurrency where BNB originated in 2017 before becoming independent.
  
  
• There are over a million BEP-20 tokens in existence, and new ones are created regularly.
  
  
• Binance Chain dominates the market share for verified smart contracts, accounting for an average of 46.5% in Q2 2023, surpassing Ethereum's share of 31.3%.
  
  
• As of February 26, 2024, the total market cap of Binance Chain stood at $589 million, marking a 2.66% increase from the previous year and a slight uptick from the previous day.
  
  
• The total value locked (TVL) in DeFi protocols connected to Binance Chain is approximately $50 billion as of February 26, 2024, according to DeFi Llama.
  

What are BEP20 Tokens Used?

BEP20 tokens, which are built on the Binance Smart Chain (BSC), have emerged as a key player in the worldwide market for blockchain-based assets.

They are flexible virtual tokens with low transaction costs, performance, and interoperability, making them useful in a variety of businesses. If you're wondering how BEP20 tokens can be used in your industry, read on to find out.

1. Finance & Banking

BEP20 can be utilized in a variety of applications, including yield farming, lending, borrowing, and DeFi app creation, all of which use EP20 tokens.

2. Healthcare

BNB Smart Chain tokens are utilized in healthcare app development to secure clinical data. It facilitates safe and visible patient-provider interactions and promotes healthy lifestyle choices.

For example, BEP20 tokens are used in dApps with a fitness focus to motivate customers to follow prescription regimens or participate in health-demanding situations, which benefits the healthcare business.

3. Education

BEP20 tokens are used in education app development to digitize learning assets, validate academic achievements with non-fungible tokens (NFTs), and encourage the creation of educational content.

With the increasing digitization of education, BEP20 tokens allow a transparent and secure means of exchanging value inside e-learning ecosystems for the education industry.

4. Supply Chain Management

BEP20 tokens are used in supply chain management software development to monitor the starting point of products, automate billing between occurrences, and ensure authenticity and transparency throughout the supply chain.

According to a Deloitte review, blockchain-based delivery chain solutions may improve traceability by 100% and reduce administrative expenses by 50%, representing incredible development for the supply chain industry.

5. Real Estate Industry

EP20 tokens are disrupting the real estate app development business by allowing for fractional ownership, streamlining asset transfers, and lowering entry barriers to real estate investing.

According to Statista, the blockchain era can save the real estate zone $160 billion in operational costs by 2025. The use of BEP20 tokens is an essential component of this shift.

Also Read: How AI is Catalyzing a Paradigm Shift in the Real Estate Industry

6. dApps and non-fungible tokens

BEP20 tokens are the fundamental currency for trading NFTs, or precise virtual assets such as virtual artwork, collectibles, and virtual actual property.

dApps app development markets on Binance Smart Chain have risen in popularity; well-known sites such as BakerySwap and PancakeSwap facilitate NFT transactions worth tens of millions of dollars each day.

How to Create A BEP20 Token?

Do you find yourself constantly thinking about how to create tokens? Don't worry, we have got you covered. In this section, we will learn how to create a BEP20 token with the help of a BEP20 token development company.

A BEP-20 token is developed through a series of stages, each of which is critical to the token's success and operation:

1. Define Your Token's Purpose and Parameters

Begin by defining your bep20 token development, taking into mind its intended purpose and attributes. Determine whether it will include a governance token, a utility token, or another function.

Choose its name, symbol, and total number; these factors determine how the market perceives it and contribute to its identity in the initial step of creating a BEP20 token.

2. Setting up your Development Environment

The second stage of creating a BEP20 token requires an adequate ICO token development environment. Install and configure MetaMask or any other wallet that works with the Binance Smart Chain.

Obtain BNB, the native coin that the BSC network uses to pay transaction fees. This preliminary step is required for seamless communication with the blockchain.

3. Building the Smart Contract

The next stage is to write the code for the smart contract that defines how your token will function. If you need to learn more about coding, consider employing a template or engaging a Binance smart chain development business.

Ensure that the smart contract adheres to BEP-20 and includes all required functionalities, such as the ability to transfer tokens and approve third-party spending.

4. Testing the Token on the Testnet

To create a cost-effective BEP20 token, rigorous testing is required, which is especially important when testing the token on a test net.

Release your token to the BSC testnet, which is a dummy network that mimics the mainnet but uses useless test BNB.

You can use this to carry out exchanges and talks, confirming that everything works properly without risking real money.

5. Deploying the Smart Contract on Testnet

We are almost done developing the BEP20 token; however, there are a few stages left. Use an Integrated Development Environment (IDE) like Remix to deploy your token's smart contract on the testnet.

This stage of creating a BEP20 token involves communication with the ICO token creation services and may reveal errors or problems that need to be addressed.

6. Conducting a Final Review Before the Mainnet Launch

It is the second to last stage of creating a BEP20 token, in which you must guarantee that the mainnet launches and conduct a previous review of the smart contract, presuming that the testnet deployment went smoothly.

Since the code becomes immutable once published to the mainnet, accuracy is crucial.

7. Deploying the Token to Mainnet

Finally, you should use Remix to deploy your BEP20 token onto the Binance Smart Chain mainnet.

After that, connect your wallet and transfer the deployment charge. It makes your token official and functional for users, establishing its legitimacy.

How to Deploy the BEP-20 Token?

Now that you understand how to create a BEP20 token, let's look at how to deploy it. Using the BEP-20 Token requires meticulous planning and a comprehensive understanding of blockchain technology.

As previously said, it is strongly recommended that you seek legal advice and assistance from a web3 development company to ensure that your token complies with the rules.

1. Conducting Pre-Launch Assessment

This will be the initial stage in deployment when you have perfected the creation of a BEP20 token.

Before launching your smart contract, thoroughly test and audit it to detect and resolve any issues or vulnerabilities. The absence of issues determines a flawless deployment.

2. Ensuring Adequate Funds for Deployment

Your ICO development company ensures that you have enough BNB in your wallet to cover the variable gas expenses of contract deployment on the BSC network. It's a good idea to have extra money on hand than you'll need.

3. Engaging with the BSC Mainnet

Using the BSC MainNet Use a blockchain IDE like Remix to interact with the Binance Smart Chain, where you'll be compiling your smart contract code.

4. Executing the actual deployment

Create a Polygon Token in the IDE and launch it on the BSC mainnet. This step uses gas and requires you to confirm the transaction in your wallet.

5. Verifying and Publishing the Contract

After deployment, submit your smart contract's source code to BscScan for validation and publication. This technique increases credibility and openness.

6. Making a Public Declaration

As soon as the token is active, investors, potential users, and the general public must be informed of its debut. This is usually accomplished through the use of news releases, community forums, and social media.

Why Develop BEP20 Token on Binance Smart Chain?

There are several notable advantages of creating a BEP20 token on the Binance Smart Chain (BSC), which can greatly influence your product and ecosystem.

Take a close look at these great benefits of creating a BEP20 token to ensure that you take advantage of every opportunity.

1. High Scalability with Low Transaction Costs

Binance Smart Chain is well-known for its high throughput and low transaction fees, making it an ideal platform for token sales and decentralized apps (DApps).

By utilizing BSC, you can scale your best ICO listing websites effectively and without concern for gas costs, resulting in a faultless user experience.

2. Interoperability with the Ethereum ecosystem

BSC is fully compatible with the Ethereum Virtual Machine (EVM), making it simple to convert Ethereum-based currencies and apps to BSC.

Because of this compatibility, the Binance app development business may take advantage of Ethereum's existing developer communities, libraries, and tools, accelerating development and encouraging creativity.

3. Fast Transaction Speeds

The Binance Smart Chain boasts lightning-fast block and confirmation times, resulting in faster transaction settlements and better user experience

Users can benefit from virtually instant token transfers and transactions via BSC, which boosts productivity and user satisfaction.

4. Strong Community Support

Binance Smart Chain benefits from a thriving ecosystem of users, app developers, and projects, as well as strong community support.

By developing your BEP20 coin on BSC, you may gain access to this vibrant community, as well as helpful tools, cooperation opportunities, and project visibility.

5. Security and Reliability

Binance Smart Chain uses Proof of Staked Authority (PoSA), a strong consensus approach that combines the benefits of PoS and PoA.

This consensus approach protects the BEP20 coin and ecosystem from any assaults or flaws while also ensuring network security and dependability.

6. Decentralised Finance (DeFi) Opportunities

BSC has established itself as a well-known center for Decentralised Finance (DeFi) protocols and apps, offering a wide range of solutions to both users and Fintech app development companies.

By creating your BEP20 token on BSC, you may gain access to the developing DeFi ecosystem, research cutting-edge financial goods and services, and participate in a variety of yield farming, lending, and liquidity mining opportunities.

7. Seamless integration with the Binance ecosystem

The Binance exchange, Binance Coin (BNB), and other Binance products and services are inextricably linked to the Binance Smart Chain.

Create a BEP20 token on BSC. You can use these integrations to get access to trading pairs, liquidity, and other Binance services that will boost the token’s usefulness and visibility.

How Much Does Developing a BEP20 Token on the Binance Smart Chain Cost?

A BEP20 token's development costs on the Binance Smart Chain (BSC) might vary depending on a variety of factors.

These variables include the complexity of the token, the required features and functionalities, the provider's experience with IDO token launchpad development services, and other services such as testing and auditing.

The cost of launching an ICO with a basic BEP20 coin with standard features and functionality ranges between $5,000 and $10,000. It would oversee the smart contract's development, token distribution, and fundamental testing.

On the other side, the cost of developing a BEP20 token may increase for more sophisticated tokens with advanced features such as staking, burning tokens, or integrating with other DeFi protocols.

The cost of developing an erc20 token can range from $10,000 to $30,000 or more, depending on the complexity of the specifications.

It's also important to budget for recurrent costs such as deployment fees, testing, and auditing.

Testing helps to identify and correct any mistakes or vulnerabilities before deployment, whilst auditing services help to ensure the smart contract's security and integrity.

Although these services typically incur additional blockchain development costs, they are required to assure the security and success of the token project on the Binance Smart Chain.

Explore More: What is the Future of Cyber Security?

Conclusion

In short, developing a BEP20 Token on the Binance Smart Chain is a straightforward process that can be done with the right tools and knowledge.

Binance Chain provides a fast, secure, and cost-effective way to launch your own token, making it an attractive option for many projects.

Whether you want to raise funds, build a community, or develop new applications, the Binnace Smart Chain offers a flexible platform to meet your needs.

However, understanding the technical aspects of token creation and following best practices to ensure a successful launch is important.

By following the steps in this article, you can create your own BEP20 token on Binance Smart Chain and take advantage of its many benefits.

Frequently Asked Questions

Q. How do I create a BEP20 token on the Binance Smart Chain?

Ans. There are two main two ways to create a BEP20 token on BSC. The first approach is coding your own smart contract. This offers more flexibility but requires knowledge of Solidity programming language and familiarity with BSC development tools. You'll need to write, compile, and deploy the contract. Another way is using a token generation platform. This simplifies the process by providing a user interface to define token details without coding. Platforms like Bitbond Token Tool or Binance's My Token can be used for this.

Q. Does Binance Smart Chain support BEP20?

Ans. Yes, BEP20 is the standard specifically designed for tokens on the Binance Smart Chain.  BEP20 tokens are compatible with BSC and allow users to transfer value and interact with decentralized applications (dApps) built on the Binance Smart Chain ecosystem.

Q. How much does it cost to create a BEP20 token?

Ans. The cost to create a BEP20 token depends on the chosen method. If it’s coding your won contract then you’ll need to pay gas fees for deploying the contract on the blockchain. Gas fees can fluctuate based on network traffic. On the other hand, if you’re using a token-generation platform to create a BEP20 token then you’ll have to pay a fee for their survival. The charges can vary depending on the platform and token features.

Q. Where can I get a BEP20 address?

Ans. A BEP20 address is generated when you create a BEP20 token. It acts like your bank account address on the blockchain,  identifying your token holding. You can get a BEP20 address by creating a BEP20-compatible wallet like MetaMask and connecting it to Binance Smart Chain.

Q. What is the purpose of the Binance Smart Chain?

Ans. Binance Smart Chain (BSC) is a blockchain network that runs parallel to the Binance Chain. It's designed for fast and low-cost transactions, making it suitable for DeFi applications and token creation.

Q. Is BEP20 the same as Binance Smart Chain?

Ans. No, BEP20 is a token standard, while Binance Smart Chain is a blockchain network. BEP20 tokens reside on the Binance Smart Chain, following the BEP20 standard for functionalities like transfer and balance tracking.