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

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

By Hodlnaut | Hodlnaut | 1 Jul 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.

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