What is BNB Chain (BEP-20) and How is it Different from Ethereum (ERC-20)?

Cryptocurrency
First published
June 28, 2022
Last updated
June 29, 2022

Binance Chain is a decentralized exchange developed by Binance. It uses the delegated proof-of-stake to provide users with a secure trading platform. Binance Chain was designed to provide Binance's users with a high-performance blockchain that can quickly handle large volumes of transactions. 

What is BNB Chain (BEP-20)? 

BNB Chain is an independent blockchain that runs parallel to the Original Binance Chain. This means that even if the original Binance Chain network stops operating, the BEP-20 network will continue to run its technical and business functions. BNB stands for “Build and Build” and is the blockchain gas token that fuels the transactions on the BNB chain. The BNB Chain is made up of two parts: BNB Smart Chain, formerly BSC, and BNB Beacon Chain, previously Binance Chain. 

BNB Chain (BEP-20) is a new blockchain built on top of the Ethereum Mainnet, providing an alternative to the commonly used Proof of Work (PoW) consensus algorithm and a unique way to distribute tokens. The Binance Coin (BNB) can be staked to contribute to network security and vote on community governance protocols while enabling faster processing times than other networks still using PoW models. 

How is BNB Chain different from Ethereum?

BNB Chain (BEP-20) and Ethereum are both blockchains that run their own tokens. The tokens can be used in decentralized applications (dApps), while those on the Ethereum network cannot be used in dApps. However, there are some noticeable distinctions between the two chains. If you're wondering which one to use, it's best to know and understand these differences.

BEP-20 is cheaper than ERC-20. Block times for Ethereum range from about 12 to 14 seconds per block, whereas BEP-20 has about a 3-second block time. BEP-20 has a relatively small number of node validators running its network but can offer faster and cheaper transactions.

We are pleased to share that Hodlnaut supports the deposit and withdrawals of USDC on the BNB Chain (BEP-20) to all users. Users can enjoy cheap and fast blockchain transactions with Hodlnaut’s support for BEP-20.

Disclaimer: By using Hodlnaut, users expressly acknowledge and agree to the Terms of Use listed on our website at www.hodlnaut.com. This includes the relevant risk warnings applicable to you as a user of Hodlnaut's services, prior to/when carrying out Digital Payment Token (DPT) transactions. This article is for informational purposes only, and is not an offer nor a solicitation to invest in DPT, securities, funds, partnership interests or other investments or funding or purchasing loans. It is the user's sole responsibility to conduct due diligence and research extensively into each DPT and platform, and understand that the volatility and unpredictability of the price of DPT may result in significant loss over a short period of time. No information on Hodlnaut should be considered to be business, legal, financial or tax advice regarding the use of Hodlnaut. Users should consult their own legal, financial, tax or other professional advisors before using Hodlnaut. Please refer to our website at https://www.hodlnaut.com/tos for the full Terms of Use.

Articles we thought you might enjoy:

Put Your Crypto to Work!
Earn Passively with Hodlnaut

Join Now
Hodlnaut Crypto Interest Account