What is BEP-20? What is bLEO? Advantages?
The announcement we have been waiting for is finally here. LeoFinance is now extending its branches and aiming to reach new heights.
In the new announcement, they have revealed bLEO and CUB tokens.
But if you are someone like me, a crypto noob, and wondering what BEP-20 is, this post is for you.
I will attempt to explain these important and really relevant crypto terms in the simplest way possible.
First, let's understand ERC-20. It is, simply put, an Ethereum coin. ERC stands for Ethereum Request for Comment, and 20 is the proposal. The proposal outlines the details of how this token functions, trades, and so on.
If you have been active on the Leo frontend, or in crypto news, you must have come across the term BEP-20. It is, simply put, a token on the Binance Smart Chain. In some ways, you can think of it as an ERC-20 of Binance Smart Chain. However, they are not.
Binance has 2 chains. Binance chain and Binance Smart Chain. The Binance Chain is the primary one and the oldest one, which is mainly tunneled and focused on exchange and trading. Binance Smart Chain is a "dual-chain architecture" that allows users like you and me to build projects on, digital asset-backed communities, create assets, and so on. You can then use the other chain, Binance Chain, to enjoy trading said assets and tokens.
BEP-20 is a token standard on the Binance Smart Chain, the building chain, not the trading one. It is compatible with both BEP-2 and ERC-20, which makes it extremely flexible, gives it potential, and makes it a real contender in the innovating crypto world.
The token essentially provides a blank board with different colored markers to allow anyone to create tokens. A native asset can be created as a BEP 20 or even peg other existing coins from other chains to it. These pegged tokens are called "Peggy".
bLEO is the wrapped version of LEO on the BSC. A BEP-20 LEO token, essentially. It is the exact LEO you and I know and love, except it is on the BSC and represents BEP-20. Just like WLEO, on the ethereum chain.
Like most cases, any transactions taking place on the BSC also uses fuel - BNB, and "miners/validators" are paid in BNB. BEP-2 tokens, of the Binance Chain, the trading one, can be swapped for BEP-20.
As I see it, wrapping LEO in BEP-20, in this case, is as good as it comes. It is like having your own hive-based LEO, with some additional advantages and eyes from the BSC. Its a win-win and I am all for it.
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