BEP-20 is the token standard on Binance's faster and cheaper blockchain, the Binance Smart Chain, similar to the bep20 token creator ERC-20 token on the Ethereum Blockchain. The BEP-20 on the BSC mimics the ERC-20 functionality, governing how all other tokens are created on the blockchain, as well as their tokenomics and operations. The existing BEP-2 standard also works in the same way for Binance's traditional blockchain, and all three standards are compatible due to similar specifications.