BEP-2 stands for Binance Chain Evolution Proposal 2. It is a technical standard used for the creation and usage of new tokens on the Binance Chain. BEP-2 is a set of rules that must be followed by the tokens to function within the Binance ecosystem. It is very similar to the ERC-20 standards that must be followed by every Ethereum-based token.
Although the BEP-2 standards serve the essential and basic requirements to issue tokens on the Binance Chain, various tokens can have different implementations of the same rules for different utilities they have been created for. A wide range of tradeable goods and digital assets are represented with the help of BEP-2 tokens. Smooth integration of the tokens with each other and their surrounding ecosystem is ensured by the BEP 2 standard.
The BEP-2 tokens hosted on the Binance chain depend upon the delegated proof of stake (DPoS) and BFT consensus mechanism along with a dedicated layer running on this. They serve as an efficient and scalable alternative to the proof of work algorithm.