Tokens for crowdfunding are one of the exciting aspects of blockchain technology. Think of them as facilitators; they enable investors to access multiple crypto projects within the ecosystem. Tokens improve engagement and synthesize the community with transparency in mind, symbolizing the project’s stated terms.
Tokenizing a business idea is becoming a viable fundraising option for entrepreneurs to implement. However, before you start pursuing it, you must ensure the potential benefits of BEP20 token development in the fundraising ecosystem. You’ll also know the step-by-step development process if you’re an entrepreneur reading this blog.
The Way BEP20 Tokens Work
Blockchain technology’s involvement in the fundraising process ensures that it is open for all and accessible from anywhere. While talking about blockchain networks, I must confer on the underlying technology behind BEP tokens – the Binance Smart Chain (BSC). While Binance Chain remains the primary, Binance smart chain remains its parallel chain, operating independently.
Binance Smart Chain introduced the BEP20 token standard, and it has gained a lot of traction in the web3 developer community.
Surprisingly, some developers have argued that BEP20 is a superior alternative to Ethereum’s ERC20 token standard. As a result, many newcomers to the web3 world are interested in learning more about BEP20 and how it supports the Binance Smart Chain. The following discussion provides a comprehensive overview of BEP20’s fundamentals, characteristics, and applications.
BEP20 vs ERC20: The Commonalities
As mentioned before, the BEP-20 tokens derive some of their functionalities from Ethereum’s ERC-20 token standard. Some of them include:
The Total Supply feature finds out the total number of tokens in a smart contract.
BEP20 standard lets the token developers specify a human-readable name for the token. Also, you can specify the divisibility for the token!
Both ERC20 and BEP20 tokens offer a great share of flexibility in specifying token transfer conditions.
While leveraging the allowance option, both these tokens keep tabs on the unspent portion.
Utilizing the approve function, both tokens restrict the number of tokens a smart contract could accommodate.
So, both ERC-20 and BEP-20 tokens share similar functionality, and I could hear you asking this question! Apart from these notable commonalities, the BEP20 token standard features a unique function – the “getOwner” – that retrieves the information about the BEP20 token holders.
What Does the BSC bestow the Tokens with?
The Binance Smart Chain BEP20 connectivity establishes a solid foundation for developing self-contained blockchain platforms to aid web3 development. The Binance Chain was created with the primary purpose of allowing speedier transactions on the Binance exchange. It’s critical to understand Binance Smart Chain token development because it’s the playground where you may play with BEP20 tokens.
Binance’s dual-chain design is one of the most notable features to examine when delving into the specifics of a Binance Smart Chain BEP20 wallet address and related transactions. Binance runs the Binance Chain and the Binance Smart Chain in tandem, with BNB as the native coin.
The 7-step BEP20 Token Development Process
We assume that you plan to develop your BEP-20 token for fundraising purposes, and you are about to step on it. But before stepping on to it, you would want to ascertain the process, won’t you?
As a long-time crypto observer and analyst (currently), I feel privileged to enlist the following steps:
Ensure A Token Pertaining to Business Idea
You may have a fund-seeking crypto project, I assume. If yes, you would have an idea that solves consumers’ pain points in the blockchain space. You must plan your BEP-20 token to align with your project objectives. Simply put, build a BEP20 token that resonates with your project.
BEP-20 Development Roadmap
A well-thought-out project roadmap allows investors to see how your product will take off and profit them. As a result, creating a roadmap is an important step in the token sale process. Even if your project is big and requires significant investment at any stage, you should make sure that your investors can easily review your team’s performance.
Add BSC Testnet to Your Wallet
I hope you have a crypto wallet ready, don’t you? If you have one, go to your wallet tab. Say (for instance), you have a Metamask wallet, and you would have to configure your wallet to the BSC Testnet. If you have any trouble doing this, the Binance Docs might assist you in doing the same.
Obtaining BNB on your Wallet
BNB is Binance Smart Chain’s native currency – what ETH to Ethereum is the same for BNB to BSC. Remember – you can get some testnet BNB here. To get BNB delivered to you, copy your wallet address from the MetaMask browser plugin and paste it into the field. We can spend some of the fresh BNB burning a hole in our wallets!
Coding the Token
BSC uses EVM (Ethereum Virtual Machine) – as a result – coding is almost similar for ERC-20 and BEP-20 tokens. Replicate the sample ERC-20 token from OpenZeppelin to code your token & smart contract.
Specifying the Decimals
Solidity may not have the decimal option, forcing you to use the fixed-point arithmetic option. A specific number of decimals must be stored in the value.
Deploying
With this step, you will have a fully-functional BEP-20 token for your fundraising process or any other purpose. Deploying your token on the testnet and mainnet ensures that it is ready for use!
Sounds Too Tech-heavy?
Well, all these steps may sound tech-heavy for you especially if you’re from a non-tech background. Needn’t worry as you can always hire a BEP-20 token development company to accomplish your process.
Well, that’s it! Feel free to drop any comments if you have any second thoughts regarding this topic.
Best of luck with your fundraising efforts!
