What is the difference between BUSD and ERC20 tokens?

3 answers

• Nov 25, 2021 · 3 years ago
  BUSD and ERC20 tokens are both types of digital assets, but they have some fundamental differences. BUSD is a stablecoin issued by Binance, pegged to the value of the US dollar. It is built on the Binance Chain and follows the BEP-2 token standard. On the other hand, ERC20 tokens are based on the Ethereum blockchain and follow the ERC20 token standard. They can represent various types of assets and are widely used in decentralized applications (DApps) and smart contracts. While both BUSD and ERC20 tokens are used for digital transactions, their underlying technologies and purposes differ.
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• Nov 25, 2021 · 3 years ago
  When it comes to BUSD and ERC20 tokens, the main difference lies in their underlying blockchain platforms. BUSD is built on the Binance Chain, which offers fast and low-cost transactions. On the other hand, ERC20 tokens are based on the Ethereum blockchain, which is known for its robustness and wide adoption in the crypto space. Additionally, BUSD is a stablecoin, meaning its value is pegged to a stable asset like the US dollar, while ERC20 tokens can represent various types of assets, including cryptocurrencies, utility tokens, and security tokens.
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• Nov 25, 2021 · 3 years ago
  From what I understand, BUSD is a stablecoin issued by Binance, while ERC20 tokens are a type of digital asset based on the Ethereum blockchain. BUSD is designed to maintain a 1:1 ratio with the US dollar, providing stability in the volatile cryptocurrency market. On the other hand, ERC20 tokens can represent different types of assets and are widely used in decentralized applications. Both BUSD and ERC20 tokens serve different purposes and cater to different needs in the cryptocurrency ecosystem.
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