## BEP-20 Token Standards: The Foundation for Building Diverse Assets on the BNB Smart Chain

**What is the BEP-20 token standard?**

In the BNB Smart Chain (BSC) ecosystem, BEP-20 serves as the technical specification for Tokens. It provides developers with a clear set of rules that define the transfer mechanism, permission management, and usage restrictions of Tokens. If you are familiar with Ethereum's ERC-20 standard, BEP-20 is the counterpart in the BSC ecosystem – both share a similar architectural philosophy.

**Flexible Token Issuance Plan**

The original intention of the design of BEP-20 is to give developers ample freedom. Through this standard, anyone can issue tokens on BSC, whether representing company equity, fiat currency reserves (i.e., stablecoins), or purely innovative assets. This flexibility opens up various possibilities: you can either create a native token from scratch or transfer assets from other blockchains to BSC to make them compatible with the BSC network – this is the principle behind the operation of "Peggy tokens".

**Cross-chain asset bridge**

Many well-known crypto assets are circulating on BSC using the BEP-20 format, such as LINK and XRP, which have corresponding BEP-20 versions. This bridging mechanism allows users to flexibly transfer these assets between different blockchains.

**BNB-driven Trading Incentive Mechanism**

The transfer of BEP-20 Tokens relies on BNB as the network gas fee. Whenever a validator completes the block packaging work, they receive corresponding transaction fee rewards in the form of BNB. This incentive mechanism ensures the normal operation of the entire blockchain network.