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How does BEP20 Token Development make Crypto Crowdfunding more Efficient?

Blockchain-powered crowdfunding could be the right way for young startups and entrepreneurs to raise the required amount of capital for projects.

By robert kroosPublished 2 years ago 9 min read
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BEP20 Token Development

In the late ’90s when a startup or an entrepreneur wanted to raise funds for a company or anything that was required to start - there are some good ways. Such as they can get loans, raise money from friends, family members, or investors. This would help them to get enough money for their project. But in this digital era, the advancements and latest technologies made their approach in a different way. One such way is crowdfunding. The term Crowdfunding is a highly prevalent one among budding startups. Crowdfunding is an ideal way to raise capital from a massive amount of people to finance a new business venture. When it comes to crowdfunding, there are two types. Such as traditional crowdfunding and crypto crowdfunding.

In traditional crowdfunding, there will be no global participation. Traditional fundraising is categorized into three forms such as donation-based crowdfunding, rewards-based, and equity-based funding. Some restrictions will be implemented in this method which will be a barrier to many investors. The major drawback of this method is the limitation that would stop the growth of service or a product with huge potential. That’s why traditional fundraising is inefficient and this is where crypto crowdfunding comes into the picture.

Blockchain-powered crowdfunding could be the right way for young startups and entrepreneurs to raise the required amount of capital for projects.

Crypto Crowdfunding for Raising Capital

The implementation of blockchain in crowdfunding makes the funding process safe and transparent. Investors can participate in this process from anywhere across the globe which is the major advantage of preferring this method. The crowdfunding platform that uses blockchain technology will let the startup increase the success rate of a project. This made many new business class people and entrepreneurs move from traditional fundraising methods to cryptocurrency crowdfunding methods. This method is far similar to the traditional method. But the major difference is the usage of currencies and the technology used. This platform uses virtual digital assets to not only provide seed capital to new startups but also enable the investors to reap a good amount of profit.

When it comes to the cryptocurrency crowdfunding method, three main types are prevailing in the blockchain industry. They are ICO, IEO, and STO. Initial Coin Offering is the first introduced crypto fundraising technique in the blockchain market which is recognized as a golden method for many startups to raise funds. In the other words, we can say it is a crowdsale platform where any individual can conduct the token sales as per their needs. There will be no interference of central authority or government in this method. Investors will verify the whitepaper and if they are satisfied with the project, they can contribute their funds. ICO is preferred by many startups because of its wide range of benefits and popularity among investors in the crypto market.

In the second place, IEO is the prominent and easiest crypto crowdfunding method that is completely operated by the exchange platform. Experts in the crypto community are claiming that IEO is the evolution of ICO. Furthermore, STO is grabbing the attention of many startups with its reliability and regulations implicated in the method. For executing an STO platform and raising funds, the startup must satisfy all the SEC guidelines and government regulations. Therefore, it would increase the trust of investors in your project.

Comparing all these three crypto crowdfunding methods, the ICO fundraising strategy is the most preferred one by most young startups in the crypto sector. If you are going with this method, then you need to select the right blockchain network.

Now, let us see…

Suitable Blockchain For ICO

Presently, many startups around the globe are showing a great interest in blockchain as an alternative decentralized financial solution. Because it offers various beneficial factors such as security, privacy, faster transactions, and high transparency. Choosing the finest blockchain network for developing a crypto token will make you a successful entrepreneur in the blockchain sector. Because crypto token creation is the major step for initiating an ICO campaign. Currently, three prominent blockchain platforms are popular among people in the blockchain space such as Ethereum, Tron, and Binance smartchain. Each blockchain network has its own unique functions with different attributes. As per the current crypto market and trend, Binance smart chain is recognized as the best blockchain platform for developing a crypto token with a rich set of features.

Binance smart chain is the superior blockchain network and it was first launched by the world’s prominent crypto exchange - Binance. It is widely used for developing smart contracts, crypto tokens, Decentralized applications, DeFi protocols, and more. The binance smart chain is the updated network that runs parallel to the binance chain. The BSC network was launched to bridge the binance chain with the decentralized architecture. It is an open-source blockchain, so it enables the developers to build dapps on a single blockchain and dual architecture. Web3 and Decentralized finance developers will find the binance smart chain quite easy and familiar. Because it has a similar Ethereum codebase with some adjustments and updates. These updates made the binance smart chain network more efficient and highly responsive.

Like Ethereum, the BSC network also has a utility token standard named BEP20 which is a prominent crypto token standard in the crypto space. This standard helps the developers to create and deploy a secure crypto token on top of the binance smart chain network.

Now, let us see...

BEP20 Token Standard

BEP20 token standard is the technical token standard that works on the binance smart chain network. It is a fungible token standard and the term ‘BEP’ stands for ‘Binance chain Evolution Proposal’. The crypto tokens which are developed by using the BEP20 token standard are considered BEP20 tokens. The BEP20 standard has all the vital functions like transferring, returning a balance, and viewing token ownership. These standard tokens are widely accepted in many decentralized applications and wallets that are evolving in the current crypto marketplace. Many developers are using the BEP20 standard for token creation instead of ERC20 because of its low gas fees. BNB(Binance coin) fuels all BEP20 token transfers.

BEP20 standard tokens are similar to the ERC20 and BEP2 tokens but the major difference between the BEP20 and BEP2 is that they work on distinct blockchains. BEP20 comes under the binance smart chain and BEP2 comes under the Binance chain. Creating a crypto token on the BSC network with the BEP20 standard is highly beneficial because it was composed of top-level technical descriptions to provide adaptability and flexibility to developers. That’s why several startups are creating BEP20 tokens in the crypto space.

Why Choose the BEP20 Token Standard for Crypto Token Creation?

Binance smart chains BEP20 token standard will be the best and suitable standard for ICO and token creation. Here I share some notable reasons to choose the BEP20 standard.

BEP20 token standard is the trending one in the current crypto space. So developing a crypto token with BEP20 will help you to enter the market quickly and raise capital effectively.

The popularity of the BEP20 standard in recent times made many people choose this standard for creating crypto tokens. Besides this, several crypto investors are showing interest in BEP20 tokens.

Highly performative crypto token standard.

BEP20 token standard is the most preferred and used standard by crypto startups and entrepreneurs in recent times.

One of the major reasons to choose this standard is the transaction cost. Because comparing other blockchain platforms, the binance smart chain has the lowest transaction fees.

The transaction speed is high.

Binance smart chain supports bootstrapping

Perks on Creating BEP20 Tokens

As a startup, you can get various benefits by developing Binance smart chain BEP20 tokens.

1. It is the safe and secure token standard that comes with advanced functions.

2. As previously said, BEP20 tokens are familiar with BEP2 and Ethereum’s ERC20 tokens. Therefore, these tokens are compatible with both blockchain networks.

3. When it comes to the crypto token business, BEP20 token standard tokens will offer you top-notch results.

4. A high level of feasibility is possible in creating BEP20 tokens.

5. BEP20 tokens can be easily swapped with BEP2 standard tokens.

6. As per the current crypto market, there are many popular BEP20 tokens such as BUSD, CAKE, BAKE, SAFEMOON, and more. So you can also be a successful entrepreneur in the crypto sector by creating a BEP20 token.

7. It has high transparency and transaction time is less when it comes to trading.

8. Your BEP20 tokens can be easily supported in Ethereum tools, staking, and decentralized applications.

9. BEP20 tokens will be supported in all popular cryptocurrency wallets.

How to Create a BEP20 Token?

As we are living in the modern world, creating a BEP20 token is not a tough enough job. The smart contract is the vital factor to be considered while developing the crypto token. If you are willing to create and deploy a BEP20 token under the binance smart chain, then some crucial factors need to be taken into the account. Here I shared some essential parameters that you must consider when it comes to BEP20 token development.

1. Token name

2. Token symbol

3. Token decimal place

4. Token supply

5. BalanceOf

6. Token features

7. Smart contract

For developing a BEP20 token with desirable features, you need to have proper guidance from experts in this field to implement a smart contract. Else, you can develop a BEP20 token with the help of a token generator. The smart contract used in these tokens will be pre-programmed so you can not implement the smart contracts and functions based on your business needs. That is why it is highly recommendable to hire a team of well-experienced blockchain developers from a reputed BEP20 token development company in the blockchain sector. Having assistance from them will help you to develop a BEP20 token with advanced functions as per your business necessities. Some ideal steps are involved in the BEP20 token development process. Such as

1. Research and discovery

2. Planning

3. Design

4. Development

5. Testing and Deployment

6. Maintenance

These procedures will be followed by the best BEP20 token development company to create a BEP20 token using the binance smart chain.

Wrapping up

The BEP20 token standard has fundamental capabilities such as ownership, transfer, balance return, and other basic parameters. As of now, many startups are entering the market by launching crypto tokens using a binance smart chain with unique business ideas. Therefore, it is the right time for you to create a BEP20 token and reap profits. All you need to do is choose the professional BEP20 token development company in the blockchain space. Raise your funds quickly through ICO crowdfunding by developing a BEP20 token and you can be a successful entrepreneur in the crypto marketplace.

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