How Many Different Crypto Token Standards
ERC-20, BEP-20 and TRC-20 token standards
A token is a cryptocurrency created for a specific project and using an existing blockchain. Tokens are usually developed and used by startups or organizations wishing to raise funds for their new projects, usually in the field of blockchain, but not always.
Ethereum, Binance (BinanceSmartChain) and TRON are the three most popular blockchains used for token development. They use the ERC-20, BEP-20 and TRC-20 token standards, respectively.
In this article, we will talk about everything related to tokens, including what the token standard is and the various types of token standards.
What is a Crypto Token Standard
The token standard contains a set of rules by which all tokens of this particular standard are managed. In other words, the token standard defines the mechanism for creating, issuing and deploying new tokens on a specific blockchain.
For example, ERC-20 token development is an Ethereum token development standard that provides developers with an easy way to create new tokens based on the Ethereumblockchain.
All ERC20 tokens will have common properties and will be governed by the same rules. Besides ERC-20, BEP-2, BEP-20 and TRC-20 are some of the other popular cryptocurrency token standards.
How Many Different Crypto Token Standards are there
Each blockchain can have its own standard of tokens, and sometimes several. For example, Ethereum has several token standards, including ERC-10, ERC-20 and ERC-721.
If we talk about the most popular types of cryptocurrency token standards for advanced cryptocurrency token development
- ERC-20 (Ethereum)
- TRC-20 (TRON blockchain)
- BEP-20 (Binance Smart Chain)
Now let’s discuss each of them in detail, as well as the various differences between them and how to choose the best token standard for your project.
ERC-20 Token Standard – What it is How it works
ERC-20 is the most popular and used token standard of all time. Most of the tokens you see on CoinMarketcap.com, are ERC – 20 tokens created on the Ethereum network. ERC-20 is also one of the oldest and most reliable standards for creating tokens.
ERC stands for Ethereum Request for Comment. All tokens that are created and launched on the Ethereumblockchain must comply with the rules of the ERC-20 token standard. Ethereum smart contracts are used to create ERC-20 tokens that can be bought and sold, as well as traded on exchanges.
Variety of ERC-20 Token
The ERC-20 token standard contains a variety of information, including:
- Details of the total token supply
- How the tokens will be transferred?
- How the tokens can be withdrawn?
- Token balance in the account,
- How the tokens will be received?
The ERC-20 token standard contains a variety of information, including: Creating ERC -20 tokens is simple and affordable. Moreover, transactions involving ERC – 20 tokens are fast, with efficient fast transaction confirmation. The risk of contract breach is also low on the Ethereum network. Transactions with ERC-20 are fast, efficient and globalized thanks to the power of Ethereum.
In addition, you can count on higher liquidity and increased revenue thanks to the global recognition and widespread distribution of ERC-20 tokens. The development of ERC -20 tokens is cost-effective and does not require much time.
The tokens created by this method are easy to use, very reliable and come with special wallets. This is the easiest way to raise funds for a cryptocurrency startup project.
Custom crypto tokens created on the Ethereum network based on the ERC-20 standard can be used both in BSC and in the TRON network.
How to create an ERC-20 token
Creating an ERC-20 token is quite simple for developers. However, if you do not have knowledge or experience in blockchain development, it is recommended to seek professional help, since the development of the ERC-20 token requires technical expertise and knowledge of programming languages.
BEP-20 Token Standard
BEP-20 is the second most popular standard for the development of cryptocurrency tokens. Many new tokens are being developed on the Binance smart chain, mainly because it is faster, more efficient and supports inter-chain compatibility.
BEP-20 was created as an extension of ERC-20 and therefore inherits all the features of ERC- 20.
BEP -20 is the main token standard for the Binance smart chain, that is, all tokens on BSC are automatically based on the BEP-20 standard. BEP-20 defines the rules according to which the BEP-20 token will be used, transferred, approved and managed.
Note: BEP-20 should not be confused with BEP-2. These are two separate Binance token standards. While BEP-20 is the Binance SmartChain (BSC) token standard, BEP-2 is associated with Binance Chain.
Unlike Binance Chain, BSC supports smart contract functionality, and therefore BEP-2 tokens are also supported.
All BEP-20 tokens are based on Binance SmartChain, which is a specialized Binanceblockchain network created to launch smart contracts and DApps. BSC allows developers to create decentralized applications based on smart contracts.
Many people don’t know that BSC is compatible with ETH and offers a faster and cheaper way to process transactions. This means that you can use Binance SmartChain (BEP token) to transfer ERC 20 tokens at a much faster rate and at a very low price.
Using BEP-20, you can transfer not only ERC-20, but also many other tokens, including Bitcoin, Ether, Litecoin and USDT.
Other advantages of the BEP-20 token system include compatibility with ERC-20 BEP-2 tokens, support for the Binance exchange, built-in functions of the BEP-20 standard, easy exchange with BEP-2 tokens supported by many wallets, and inter-chain compatibility with other blockchain tokens.
BEP-20 token development process
The process of creating a BEP-20 token is relatively simpler. You can even create a basic BEP-20 token without any technical knowledge or experience with blockchain.
However, developing a specialized multifunctional BEP-20 token from scratch will certainly require the technical knowledge of a professional BEP-20 token developer.
Hire services for the development of the BEP-20 token from the expert blockchain company SAG IPL.
TRC-20 Token Standard
TRC20 is a token standard for issuing and managing tokens created on the TRON blockchain. The TRC20 standard defines the rules that each token in the network must follow.
These include the rules for issuing new tokens, implementing and approving the transfer of tokens, sending and receiving tokens, and much more.
All tokens in the TRC20 network will be supported by certain digital wallets, they can be exchanged, transferred and shared if they follow the rules specified in the TRC20 contracts, including total Supply (), balance of (), transfer (), approve (), transfer from () and allowance ().
In addition, TRC20 tokens can also follow the rules of options, including Token Name, Token Abbreviation and Token Precision.
The TRON network was created as a more efficient clone of Ethereum, with lower fees and faster transaction speeds.
Since the TRON virtual machine – the operating system for TRON smart contracts – uses the same Solidity language for contract programming as Ethereum, all TRON tokens and smart contracts are easily compatible with the Ethereum network. This means that TRON tokens can be used on the Ethereum network, and vice versa.
TRC-20 is the standard used to issue new tokens on the TRON blockchain. Since TRON is a public blockchain, it allows anyone to create and issue their tokens in accordance with the rules specified in the TRC-20 standard. All TRC-20 tokens can seamlessly interact with all other tokens and applications created on the TRON network.
Unlike ETH, which uses the Proof of Work (PoW) consensus mechanism, the TRON network uses the Delegated Proof of Stake (DPoS) consensus method, which is not only more efficient in terms of high transaction speed and low cost, but also has many unique innovations that meet the most modern requirements.
The average block time on the TRON network is 3 seconds per block, which is much better than the block time on the Ethereum network, which is 15 seconds.
TRC-20 Token Development
New TRC-20 tokens can be created and issued on the TRON network website developers.tron.network). To do this, the developer must prepare the code of the TRC20 smart contract, which, of course, requires technical knowledge and understanding of the programming language. After the contract is created, it can be deployed on the network and new tokens can be issued based on it.
ERC-20 vs. TRC-20 vs. BEP-20
The main difference between the three most popular token standards is in the underlying network. While ERC- 20 cryptocurrency tokens are based on the Ethereumblockchain, BEP- 20 tokens are built on BSC, and TRC-20 tokens are based on the TRON blockchain.
All three networks use the same solidity language, which means they are more cross-compatible and can be used interchangeably, while tokens developed on one platform are available on others. In addition, the process of creating and placing tokens in all three networks is almost the same, except for fees and ease of use. In terms of efficiency, the BSC network is the best for token development and offers the lowest fees.
TRON, in fact, is a clone of Ethereum with increased efficiency and reduced cost. Since mining on the Ethereum network is impractical due to very high fees, alternatives have emerged, such as TRON and BSC, offering more efficient and cost-effective solutions along with all the functions of the Ethereumblockchain.
Since the BSC network is compatible with ERC- 20 and TRC20, you can send or withdraw the ERC-20/TRC-20 token using the BEP-20 network.
While the Ethereum network still uses the old Proof of Work (Proof) consensus algorithm, the Binance smart chain uses a specialized Proof of Staked Authority (or PoSA) mechanism, which is claimed to have a 3-second block processing time compared to the 15-second Ethereum block processing time.
Thus, it is obvious that the Binance network is about 5 times more efficient than the Ethereum network. The Delegated Proof of Stake (DPos) TRONS is also an adapted version of the
POS and has a registered block processing time of 3 seconds per block, which roughly corresponds to the BSC indicators.
In fact, the inefficiency of Ethereum has become the main reason for the creation of other blockchains. Over time, as traffic and demand grew, the slow Ethereum consensus model proved inefficient and very costly, which led to the development of TRON (in 2017) and thenBinance Smart Chain (in 2019).
The TRON blockchain with its delegated proof-of-value consensus (DPoS) is clearly more efficient than Ethereum and can process more transactions in less time and with lower fees.
In terms of popularity, BEP-20 is second only to ERC-20 and is growing quite fast, thanks to the growing global popularity of the Binance exchange. All BEP-20 tokens are automatically listed on the Binance exchange and are compatible with several types of tokens, including Bitcoin, ETH, Litecoin and others.
If you are looking for ease of development and want to take advantage of the global fame, reach and popularity of Ethereum, ERC20 token development is the best option for you. However, if you want to get the best innovative token with the lowest commission and processing time, choose the BEP-20 token development.
Since the commission for transactions in Ethereum is already very high and becomes higher as the load on the network increases, it is difficult for developers to consider the possibility of creating complex applications with advanced features, as this can further increase the commission for transactions on the network. TRON solves this problem by providing the ability to create advanced smart contracts and applications without significantly affecting the network commission.
However, in the competition between these three most popular blockchain networks for the development of tokens, the winner, of course, is Binance Smart Chain. Why? Because BSC is efficient, cost-effective and ultra-fast.
Unlike Ethereum, where transaction fees only grow over time, Binance has somehow found a way to keep transaction fees low with increasing usage.
Believe it or not, the average daily commission on the Ethereum network is almost 200 times more than the average daily commission on the BSC network. It’s even better than on the TRON network. And this is the best reason to choose Binance Smart Chain for your token development project.
FAQ
How do I find out if my USDT is an ERC20 or TRC20 cryptocurrency?
A wallet that supports USDT should tell you whether your USDT is ERC20 or TRC20 – the name and ticker symbol. You can also check the contract address of the token on the wallet to clarify the type of token. If the address starts with ‘0x’, it is an ERC20 token. If the address starts with ‘T’, it is a TRC20 token.
Can I transfer USDT from ERC20 to TRC20?
You can transfer USDT between these two types, depending on which wallet and exchange you use. Guarda, for example, makes it easy to convert between both tokens at good rates and without KYC or registration.
What is the difference between TRC20 and ERC20?
TRC20 is the token standard used in the TRON blockchain network, and ERC20 is the token standard used in the Ethereumblockchain network. TRC20 tokens are created on the TRON Virtual Machine (TVM) and use the native TRX coin as the base currency for transactions on the network, whereas ERC20 tokens are created on the Ethereum virtual machine (EVM) and use Ether as the base currency for transactions.
Is ERC20 safer than TRC20?
From a security perspective, there is no clear consensus on which token protocol is safer. Both protocols have their advantages and disadvantages, so in the end it all comes down to user preferences. ERC20 tokens have been around longer than TRC20 tokens, so they have a more reliable track record.
However, TRC20 tokens offer higher transaction speeds and lower fees.