ERC-20 vs BEP-20: Which Token Standard Is Best in 2025?

Thinking of launching your own crypto token?

You’ve probably heard terms like ERC-20 and BEP-20 thrown around like confetti at a Web3 party. But what do they really mean — and more importantly, which one should you choose for your project?

If you’re a business owner exploring token development, this isn’t just geek-speak. Picking the right token standard can make or break your launch. Gas fees, compatibility, investor trust, and long-term scalability — they all hinge on this one early decision.

In this guide, we’ll break down ERC-20 vs BEP-20, explain their core differences, and help you make a smart, future-ready choice. Let’s start with the basics.

What Are Token Standards?

Token standards are like rules or blueprints that define how tokens behave on a blockchain. They ensure that tokens can be sent, received, tracked, and integrated with wallets, smart contracts, and decentralized applications (DApps) — all without chaos.

Think of them as the universal language of tokens. Without a standard, every app would need custom code to interact with each token. With standards, everything just… works.

Why Token Standards Matter (Technically Speaking)

At the smart contract level, token standards:

• Define mandatory functions like transfer(), balanceOf(), and approve() — enabling seamless value transfer and third-party integrations.
  
• Include event logs such as Transfer and Approval, which external apps listen to for state changes — critical for wallets, explorers, and analytics.
  
• Ensure consistent interface-level compliance, so any DApp, wallet, or exchange can interact with tokens using the same function calls — regardless of the token’s purpose.
  

Without these standards, developers would need to build custom logic for every single token interaction, drastically increasing complexity, risk of bugs, and fragmentation across the ecosystem.

Think of token standards as APIs — they allow plug-and-play functionality across DeFi, GameFi, staking platforms, wallets, and more.

What Are the Main Types of Crypto Token Standards?

There are several token standards across different blockchains. Some of the most commonly used are:

1. ERC-20: The standard for fungible tokens on Ethereum
   
2. ERC-721: For non-fungible tokens (NFTs) on Ethereum
   
3. ERC-1155: A hybrid for fungible and non-fungible tokens
   
4. BEP-2: Native token standard on Binance Chain
   
5. BEP-20: Token standard on Binance Smart Chain (BSC)
   
6. SPL: Token standard for Solana
   

But when it comes to building a fungible crypto token that’s fast, scalable, and recognized across ecosystems, ERC-20 and BEP-20 are the heavyweights.

What Is the ERC-20 Token Standard?

The ERC-20 token standard is a technical specification used to create fungible tokens on the Ethereum blockchain. Introduced in 2015 by developer Fabian Vogelsteller, it was designed to bring universal consistency to how tokens interact with Ethereum smart contracts, wallets, and decentralized applications.

“ERC” stands for Ethereum Request for Comments, and “20” is simply the proposal number.
So: ERC-20 = Ethereum’s 20th community-defined token protocol.

Before ERC-20, developers were coding their tokens from scratch — leading to incompatibility, fragmentation, and wallet chaos. ERC-20 changed the game by providing a set of standard functions and events every token contract must implement, ensuring seamless interoperability across the Ethereum ecosystem.

Key Features:

• Runs on Ethereum, the second-largest blockchain
  
• Integrates with almost every crypto wallet and DApp
  
• Supported by thousands of exchanges and DeFi protocols
  
• Highly secure and decentralized
  
• Subject to high gas fees, especially during network congestion
  

What Are BEP-20 Token Standards?

BEP-20 is the token standard for the Binance Smart Chain (BSC) — and it’s essentially Binance’s version of Ethereum’s ERC-20 standard. It defines how tokens on BSC should behave, making it possible for them to interact with wallets, DApps, exchanges, and smart contracts in a predictable and secure way.

Created to be EVM-compatible (Ethereum Virtual Machine), BEP-20 is technically modeled after ERC-20 but adds enhancements tailored for the Binance Smart Chain’s architecture, such as lower fees, faster finality, and native compatibility with Binance’s broader ecosystem.

Key Features:

• Runs on Binance Smart Chain (BSC)
  
• Compatible with Ethereum tools thanks to EVM (Ethereum Virtual Machine)
  
• Low transaction fees and faster confirmation times
  
• Popular for startups and fast-launch projects
  
• Centralized governance by Binance — which can be both a pro and a con

BEP-20 vs ERC-20: Understanding the Difference

Here’s where it gets interesting. Let’s break down the core differences between these two token standards:

Blockchain

• ERC-20: Native to the Ethereum blockchain, which pioneered smart contracts and decentralized apps (DApps). Ethereum is a first-mover and the foundation for much of Web3.
  
• BEP-20: Runs on Binance Smart Chain (BSC), an Ethereum-compatible blockchain developed by Binance. It was designed for high throughput and low cost, often at the expense of decentralization.
  

Transaction Speed

• ERC-20: On Ethereum mainnet, block confirmations average 13–15 seconds, but congestion can cause delays.
  
• BEP-20: BSC finalizes blocks in just 3 seconds, thanks to its Proof-of-Staked-Authority (PoSA) mechanism and smaller validator set.
  

Gas Fees

• ERC-20: Gas fees fluctuate with network demand and have historically ranged from a few dollars to over $100 per transaction during peak times.
  
• BEP-20: Offers ultra-low gas fees, often less than $0.10, because of BSC’s efficient architecture and fewer nodes.
  

Security

• ERC-20: Ethereum is one of the most decentralized and secure blockchains globally, backed by thousands of validators and a strong global developer base.
  
• BEP-20: BSC is more centralized, with a small set of validators chosen by Binance. While efficient, it’s not censorship-resistant in the same way.
  

Ecosystem

• ERC-20: Part of Ethereum’s vast and battle-tested ecosystem, with seamless access to major DeFi protocols (Uniswap, Aave, Curve), DAO tools, and NFT marketplaces.
  
• BEP-20: A fast-growing ecosystem with popular DApps like PancakeSwap and Venus, but still smaller in institutional and developer adoption compared to Ethereum.
  

Wallet Support

• ERC-20: Supported by every major crypto wallet including MetaMask, Ledger, Trezor, Trust Wallet, Coinbase Wallet, and more.
  
• BEP-20: Also widely supported due to its EVM compatibility. Most ERC-20 wallets can support BEP-20 with a custom BSC network setup.
  

Cross-Chain Bridges

• ERC-20: Ethereum supports Layer 2 rollups (Arbitrum, Optimism, zkSync) and is integrated with a wide range of cross-chain bridges, allowing easy movement of assets between chains.
  
• BEP-20: Primarily bridges to Ethereum via the Binance Bridge or third-party solutions like Anyswap. Fewer bridges overall, but cross-chain functionality is growing.
  

Adoption by Projects

• ERC-20: The go-to standard for DeFi, stablecoins, enterprise tokens, and DAOs. Major projects like Chainlink (LINK), Uniswap (UNI), and Tether (USDT) all launched as ERC-20.
  
• BEP-20: Favored by startups, NFT gaming platforms, meme coins, and fast-launch projects due to its low cost and speed. Projects like PancakeSwap (CAKE) and SafeMoon began on BEP-20.
  
  

BEP-20 vs ERC-20: Which One Is Better for Your Next Token Launch?

Ah, the million-dollar question. The answer? It depends on your business goals. Let’s break it down.

1. Use Case Match

If your project is focused on speed, affordability, and a quick MVP launch, BEP-20 is a solid choice.
If you’re targeting DeFi integrations, institutional investors, or large-scale token economics, go ERC-20.

2. Trust and Market Perception

Ethereum has been battle-tested. Projects launching ERC-20 tokens often enjoy greater trust, especially from seasoned investors.

3. Network Fees & Speed

BEP-20 runs laps around ERC-20 in terms of cost and speed. For budget-conscious startups or high-frequency applications like gaming, it’s a no-brainer.

4. Ecosystem and Tooling

While BSC is growing, Ethereum’s ecosystem is more mature. If your token needs to interact with multiple DeFi protocols, DAOs, or L2s, go ERC-20.

5. Long-Term Vision

Ethereum is moving fast with upgrades like ETH 2.0, Layer 2 rollups, and zkEVMs. If you’re building for the long haul, Ethereum gives you future flexibility and deeper community roots.

Still Not Sure Which One to Choose?

Ask yourself:

• What’s my token’s primary function?
  
• Who is my target user?
  
• Do I need cheap transactions or deep liquidity?
  
• Will I migrate or bridge the token in the future?
  

If you’re unsure, consider starting on BEP-20 for early testing, then upgrading or bridging to ERC-20 once you hit scale.

Conclusion: Make the Right Move for Your Token Development Strategy

Choosing between ERC-20 and BEP-20 isn’t about one being “better” — it’s about picking what’s best aligned with your business goals.

ERC-20 tokens give you trust, ecosystem depth, and decentralization. BEP-20 tokens give you speed, affordability, and quicker time to market.

So don’t just follow the trend. Choose the standard that empowers your project — technically, financially, and strategically.