ERC20 Token Standard vs. TRC20 vs. BEP20
Blockchain is a virtual ledger of transactions distributed over a network of computers on the same blockchain. Currently, there are three most popular blockchains – Ethereum (ERC-20), Binance (BEP-20) and TRON (TRC-20), and each of these blockchains has its own token standards.
Tokens are native blockchain cryptocurrencies created by various startups to fulfill projects on the blockchain development network. Each token can be used for different purposes, and in this article, we will compare the given token standards to find out how to choose the ideal token standard for your needs.
What do we understand by the Token Standard?
Each existing blockchain has its own token standard, which is compatible with the network. Simply put, a token standard is a set of rules that governs all tokens based on a specific standard (ERC-20, BEP-20, or TRC-20). Token standards identify how tokens are created, issued, and distributed on the network. For example, TRC-20 or TRC-10 is the TRON blockchain standard, which simplifies the process of creating new tokens on the TRON network. The most advanced token standards are:
1. ERC-20 ( Ethereal block )
2. BEP-20 ( Binance Smart Chain )
3. TRC-20 ( TRON blockchain )
Let's take a closer look at these three token standards and discover their main differences.
ERC-20 Token Standard
The ERC-20 token standard is the most popular token standard that is widely used for DeFi projects. ERC-20 tokens are smart contract based and developed to run on the Ethereum network. Most ERC-20 tokens are listed at the top of the CoinMarketcap chart . The “ERC'' in ERC-20 stands for “Ethereum Request for Comment”.
To create an ERC-20 token is not a difficult task for developers, but it still requires basic programming language knowledge and appropriate skills.
ERC-20 main features :
- ERC-20 transactions have fast transaction confirmation
The Ethereum blockchain has advanced security so the risk of hacking is low
ERC-20 tokens are accepted globally, come with a dedicated wallet and are easy to use. Some ERC-20 tokens are even compatible with the TRON and Binance Smart Chain networks
The ERC20 token development standard is accepted throughout the world. If you don't know how to get started with ERC-20, you can visit the Plisio cryptocurrency payment gateway website. You'll find lots of useful guides there, as well as get Plisio's free wallet and payment gateway options for your website. No extensive code knowledge required.
TRC-20 Token Standard
The TRC-20 token standard is used to build and deploy tokens on the TRON blockchain. Initially, TRON was created as a more efficient and sophisticated competitor to the Ethereum network, with a focus on cheaper and faster transactions. The TRON Virtual Machine makes all TRON tokens compatible with the Ethereum blockchain as the same Solidity language is used for the development of the TRC-20 token. All TRC-20 tokens come with a digital wallet and can be exchanged, transferred and shared.
All new tokens are produced and deployed on the TRON network website, code knowledge and technical competence are required.
Main features of TRC-20 :
- Interoperability with the Ethereum network
- Fast and cheaper Delegated Proof of Stake consensus mechanism
- Accommodation with a dedicated digital wallet for transferring and sharing tokens
BEP-20 Token Standard
Another widely used standard for token creation is BEP-20. Binance Smart Chain also launched this standard as a more efficient alternative to the Ethereum blockchain token, functioning as an extension of ERC-20 and supporting all its features. BEP-20 is not the same as BEP-2, as these are two different standards from two different blockchains – Binance chain and Binance Smart chain. BSM enables developers to create smart contract-based dApps on the network that support low-cost transaction processing.
Since BEP-20 and ERC-20 tokens are interoperable, this means that BEP-20 tokens can be used as ERC-20 tokens and sent at much lower rates.
What's great about the BEP-20 token is that it can be developed without extensive technical knowledge, but it only applies to simple tokens without advanced features. Creating more complex BEP20 token development requires coding expertise.
BEP-20 main features :
- Interoperability with the Ethereum network
- BEP-20 tokens can be used to host dApps
- Transactions are faster and cheaper when using BEP-20 as the ERC-20 token standard.
Conclude:
Now that you know all the basic differences between these token standards, you can choose the right standard to use for your personal business needs. Each token standard has its own advantages, be it cheaper transactions, global acceptance, or good technical accommodations.
To get started with ERC-20, TRC-20 and BER-20, you can check out Plisio cryptocurrency development payment gateway. When you register on the platform, you get a free wallet to store your crypto and the opportunity to integrate the Plisio API into your online store to start accepting crypto payments in any token standard of your choice, all for a simple fee of 0.5%. Plisio has a variety of cryptocurrencies to work with, as well as a useful set of tools for business growth.