BEP-2 or Binance Chain Evolution Proposal 2 is a technical standard used for the issuance and implementation of tokens on the Binance Chain. This standard defines a set of rules that tokens should follow to function in the BNB Beacon Chain ecosystem. ^[1]

Overview

BEP-2 was launched in 2019. The standard is not software but a set of technical specifications that defines a set of rules that tokens should follow to function in the BNB Chain ecosystem. Before the Binance chain, BNB was built on the Ethereum blockchain, where most tokens are built, using the ERC-20 standard. With the Binance Сhain transition, the native token was recreated based on the BEP-2 standard. ^[1][2]

While the Binance Chain is optimized for ultra-fast trading, it has a sister chain, Binance Smart Chain (BSC) that is focused on running smart contacts and decentralized applications without congesting the original chain. Because of this dual-chain architecture, BEP-2 tokens can be easily swapped for their BEP-20 equivalent.^[4]

BEP-2 tokens are tradable assets that can be traded on Binance DEX, a decentralized exchange running on top of Binance. They can also be held in a wallet similar to Ether, and are subject to similar rules about gas and transfer fees. ^[2]

Utility

BEP-2 standard can be utilized to create native tokens. ICOs can issue the tokens for fundraising, and businesses can digitize real-world assets, such as commodities or real estate, through tokenization. Additionally, BEP-2 tokens serve as a means of exchange, enabling users to trade and access various services within the BNB Chain ecosystem. ^[3]