What is a Token standard?

A crypto or digital token standard comes as a set of rules using the entirety of tokens over a particular standard which is being governed. In layman’s terms, a token standard can be interpreted as a mechanism for creating, issuing as well as deploying fresh tokens over a particular blockchain.

For example, when a token is developed using the ERC20 token standard, it automatically provides an easy route for developers to design and build fresh tokens associated on the Ethereum blockchain. Every single ERC20 tokens will have certain commonly shared properties which will be governed by the same regulations.

How many different token standards are there?

Every single blockchain is entitled to have its own token standard and few of them have more token standards than the other blockchains. Ethereum has numerous token standards that include ERC10, ERC20 and ERC721. With that being said, some of the most famous types of digital tokens are:

• ERC20 token(Ethereum)
• TRC20 token(TRON blockchain)
• BEP20 token(Binance Smart Chain)

The above-mentioned are some of the world-renowned blockchain based crypto tokens. These are the basic references used for any common crypto token. Among these, the two most used crypto tokens by the crypto enthusiasts are the ERC20 and TRC20 token standards.

ERC20 token — An Overview

The term ERC stands for Ethereum Request for Comment. The ERC20 token is the most famous as well as used token standard in the history of digital tokens. Most of the tokens across multiple world-renowned crypto exchanges are ERC20 tokens that are built over the Ethereum network. ERC20 is also hailed as one of the oldest and the most trustable standards used for creating digital tokens.

Every single token that has been created must be created in a way that it abides by the common rules of the ERC20 token standard. Ethereum smart contracts are being used for creating ERC20 tokens which can be bought as well as sold and also traded on multiple exchanges. As such created ERC20 tokens will hold an array of information that includes:

• Complete details of the total token supply.
• The transfer protocol of the tokens.
• The withdrawal method of the tokens.
• The account that tells you about the token balance
• The method by which the tokens will be received.

Apart from the conventional fungible standard, which is the ERC20 token standard, there are several other token standards. These tokens are being used for several purposes across the digital realm.

Characteristics of ERC20 Token

The ERC20 token is the most used as well as popular token standard across all time. However, most of the tokens that circulate in the market are built over the Ethereum network. The erc20 token standard is used to create fungible type tokens that can be used for transactions and processing unique payments. This popularity came to the erc20 token standard as it is very easy for a developer to create one within an affordable cost.

The transactions that are associated with ERC20 tokens are quite rapid along with high efficient quick transaction confirmation. The risk of overruling the contract also lies with the Ethereum network. The transactions processed using ERC20 standards are fast, highly effective, globalized and it is mainly because of the established power of the Ethereum network. In addition to that, you can also expect a high amount of liquidity as well as an increase in the revenue volume due to the global acceptance and the wider reach of ERC20 tokens.

So, Creating ERC20 token is comparatively cost-effective as well as a highly time-saving process. The tokens are being created in a rather user-friendly and admiringly secured way that comes with dedicated wallets. This has proven to be the easiest way for raising funds for a crypto startup. Most of the custom digital tokens that are created over the Ethereum network based on the ERC20 standard can also be used in BSC as well as the TRON network.

Best ERC20 tokens in Crypto Marketplace

Among all the created crypto tokens in the crypto ecosystem, some of them have gone on to revolutionize the crypto community for the betterment. Some of them are as listed below:

• Chainlink
• Tether (USDT)
• ApeCoin
• Decentraland (MANA)
• Shiba Inu (SHIB)
• Uniswap (UNI)
• Maker (MKR)

These are some of the most successful token projects that have gone on to be a huge success in the digital realm. These tokens’ impact over the digital enthusiasts is one of the huge factors for the success of the virtual world.

TRC20 token — Brief Overview

The TRC20 is a digital token standard for distributing as well as managing tokens that are created over the TRON blockchain. However, the TRC20 token standard basically defines the regulations which every single token in the network must adhere to. These regulations include the basic rules for new tokens, that are performing and approving token transfers like sending and receiving tokens.

Every single token preceding over the TRON network will be supported by a particular digital wallet and it can be swapped, shared as well as transferred under the condition that they follow the specified rule under the TRC20 contracts. These rules control some of the aspects like totalSupply, balanceOF, transfer, approval and allowance. Apart from these, the TRC20 tokens might also adhere to following rules including Token Name, Token Abbreviation as well as Token Precision.

Characteristics of TRC20 token

The initial aim behind the inception of the TRON network is to establish a more efficient clone of the Ethereum network, but with lower fees and very low transaction time. However, the operating system for TRON smart contracts, the TRON virtual machine uses the same Solidity language for programming the contract like Ethereum. Therefore, any and all TRON tokens as well as smart contracts would be seamlessly compatible with the Ethereum network. This simply means that TRON tokens can be used over the Ethereum network and vice versa.

The TRC20 token standard is commonly used for distributing fresh tokens over the TRON blockchain. Being a public blockchain, TRON enables anyone to create and issue their tokens as per the specified rules in the TRC20 token standard. Every single TRC20 token can be seen interacting with all other tokens as well as applications that are created over the TRON network.

On contrary to ETH, which uses the Proof of Work method or consensus mechanism, the TRON network uses a slightly altered Delegated Proof of Stake (DPoS) consensus mechanism. This mechanism, apart from being more efficient in terms of transaction speed and low cost, is also built with multiple creativity that will suit all of the latest requirements. In addition to that, the TRON network establishes a 3-second block time which is much better than Ethereum’s 15-second block time. Recognizing the advantage, many startups are interested in Developing a Tron Token to make their presence in the crypto industry.

Popular TRC20 tokens in the Marketplace

Among all the TRON based tokens created, the fungible type (i.e.) the TRC20 token standard has been the most used of them all. In those token standards some tokens did better than the rest of them. Let’s take a look at some of the most promising TRC20 tokens in the crypto marketplace.

• TRON (TRX)
• USDD (USDD)
• JUST (JST)
• Klever (KLV)
• Pallapay (PALLA)
• ZIMBOCASH (ZASH)
• BitTorrent (BTTC)

The above-mentioned TRC20 type tokens are some of the most popular token standards among the crypto entrepreneurs. In addition to that, among the mentioned three popular token standards, erc20 vs trc 20 has been the most enthralling competition. The similarity in their function has made the comparison between erc20 vs trc20 more competitive than ever.

Major Difference between ERC20 & TRC20 Tokens

In comparison, both these highly significant crypto token standards have emerged in unique timelines. There are some basic differences between these token standards. Therefore, it is important to learn about those differences before fixing a token standard before creating a crypto token for your business. In that regard, the below given are some of the most distinct technical differences between ERC20 vs TRC20 crypto tokens.

Blockchain network — Ethereum network is used for ERC and Tron network is used for TRC type tokens.

Address style — The address style commences with 0 and x for ERC tokens, whereas it begins with a T for TRC tokens.

Transfer speed — ERC type tokens takes few minutes and the TRC tokens takes from seconds to few minutes.

Fees — The average fee is charged around $0.0107 per ERC20 tokens and it starts from $0.26 USDT for TRC20 tokens.

Safety — The safety measures are quite high in ERC tokens when compared with the TRC type crypto tokens.

Usage advice — The ERC based tokens exhibit medium amount options for trading whereas a small amount of high frequency is used for TRC type tokens.

Transactions per second — ERC tokens are capable of processing 20,000 to 100,000 transactions per second. However, the TRC based tokens are capable of processing around 2000 transactions per second.

Team — Both ERC and TRC based tokens are run by a public team.

Speed — The speed of TRC based tokens are a bit quicker when compared with the ERC based crypto tokens.

Development — The development phase includes the creation of crypto tokens, smart contract designing, and decentralized applications for both ERC and TRC-based tokens.

The above mentioned are some of the most important technical specifications that every potential entrepreneur should be aware of while involved in Crypto Token Development. By knowing these, you can draft your own business proposals including crypto tokens in a seamless manner.

Final thoughts:

From the above-mentioned aspects, it is quite clear that both the ERC20 as well as the TRC20 token standards have their unique functionalities. The difference between ERC20 vs TRC20 would be based on minute aspects of the programming language used. Therefore, it is entirely up to the user or the customer to decide the suitable token standard for business. Having said that, the real challenge would be hiring the most suited team of developers for proceeding with your project. In that regard, it is highly advisable that you approach the best token development company to get the job done. This is because having the support of highly trained professionals would give you a technical edge over your competitors.