Why is BEP20 the most preferable token standard for ICO?
Initial Coin Offering has been the main source of raising funds for businesses. There are plenty of success stories that could vouch for ICO. For instance, filecoin raised almost $257 million through ICO. This provides the record to prove the allegiance of ICO towards the investors. But, it is not possible to gain the trust of your investors, unless you look into the factors. It would be easy to believe that business scope, budget, etc could be the main factors. What if someone feeds your brain with foreign facts that might influence your ICO? Yes, there is one - Crypto tokens.
Crypto tokens are nothing but digital assets holding on to some value that is designed. During an ICO, these tokens are sold to the investors to raise funds. The tokens will be holding the value of the shares the investors possess in the project. So, are you still wondering how do these tokens play a major role in making your ICO efficient? Keep reading to find out the reason.
The blockchain and token standard factor
The crypto tokens you develop will reside in a particular blockchain platform. It is mandatory to research the blockchain platform in which you are about to create your crypto tokens. And most importantly, you should be able to pick a token standard in it. There can be many standards to create a token in a blockchain. Ethereum for instance, has ERC20, ERC223, ERC777, etc. Also, TRON has TRC10 and TRC20. So it is recommendable to analyze the token standards before creating one.
Preferable token standards
As mentioned before, there are many token standards in different blockchain platforms. But not all are the preferable ones. In fact, ERC20 and BEP20 are the only token standards that are in demand. When it comes to the ERC20 token you can take advantage of its popularity. Both Ethereum blockchain and ERC20 tokens are popular in the marketplace. To be precise, almost 70% of the tokens in the marketplace are created in the ERC20 token standard. But, it has other gloom-ridden factors that state, why not choose ERC20 tokens. The cost gets high to avail faster transactions. The reason is, Ethereum has a very low transaction speed - 25 transactions per second. At this rate, it will be an obvious point why the transaction cost is higher.
BEP20, on the other hand, is quite similar to ERC20 but with far better characteristics. Despite BEP20 not being as familiar as ERC20, it is the current trend in the marketplace. Sooner or later, BEP20 will catch the popularity that is currently under the possession of ERC20. The reason will be transaction cost and speed. The BEP20 tokens reside on the Binance Smart Chain. It has a higher transaction speed when compared to Ethereum at a surprisingly low cost. In fiat, you will only pay around $0.15 per transaction in the Binance Smart Chain. Whereas in Ethereum, it ranges somewhere around $4.1 to $8.
How to create BEP20 tokens?
BEP20 token creation demands smart contract implementation. The Smart contract implementation requires the guidance of experts. To work on it, you will have to turn to a BEP20 token development company. You can list out the functionalities you require and can also ask for suggestions from the experts there. They will come out with more suggestions that might be useful for your business.
I've done some groundwork and would like to toss up my findings regarding a trustable BEP20 token development company. Zab Technologies is a renowned blockchain development company that is into BEP20 token development. You can contact them to find more.