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Published in · 8 min read · Aug 6, 2023
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The cryptocurrency industry encompasses a diverse array of coins and tokens. Presently, there are more than 20,000 cryptocurrencies in existence, making it quite challenging to stay updated on all of them. However, crypto tokens can be classified into more manageable groups, such as ERC-20, BEP-20, and TRC-20. Yet, it remains important to understand the distinctions and similarities between these token types.
Before we jump down the rabbit hole of ERC20 vs TRC20 vs BEP20, let’s first get the lay of the land and understand these token standards inside out. We need to know the ins and outs of their features, how they’re built.
A token standard is like a rulebook that governs all tokens in its club. It’s a set of guidelines that tell you how to create, issue, and grow new tokens on a specific blockchain.
Take ERC20, for example. It’s a token standard for creating token on Ethereum network. It’s a handy tool for developers who want to whip up new tokens on Ethereum. All ERC20 tokens follow the same rules and have similar properties. On the other hand, we have BEP20 and TRC20, which are also famous in the crypto world.
The key difference between these three popular token standards is their home base. ERC20 tokens chill on the Ethereum blockchain, BEP20 tokens hang out on the Binance Smart Chain Network, and TRC20 tokens find their groove on the TRON blockchain.
Let’s delve into the world of crypto tokens and compare some of the most popular ones. Here is a compilation of these tokens.
1. ERC-20 (Ethereum)
2. TRC-20 (TRON blockchain)
3. BEP-20 (Binance Smart Chain)
ERC20 holds a distinguished position as one of the most esteemed and widely adopted token standards in the crypto ecosystem. A significant portion of the tokens currently in circulation across various marketplaces are ERC20 tokens. The term “ERC” stands for Ethereum Request for Comments, and “20” serves as its proposal identifier.
As a fungible token standard, ERC20 allows for seamless buying, selling, swapping, and trading of crypto tokens. Since its inception, this token standard has garnered immense reputation and popularity. Consequently, upcoming startups often prefer ERC20 for creating their tokens, owing to its extensive desirability and widespread acceptance in the crypto community.
High-speed and efficient transactions
ERC20 tokens facilitate quick and smooth transactions, ensuring a seamless user experience.
Minimal risk of smart contract breakage
Tokens created with the ERC20 standard are designed to minimize the chances of smart contract errors, ensuring secure transactions.
Compatibility with major crypto exchanges
ERC20 tokens are widely accepted and can be traded on prominent crypto exchanges, increasing their liquidity and accessibility.
Low cost of creation
Creating ERC20 tokens is a cost-effective and reliable process, making it feasible for various projects and startups.
User-friendly transactions
ERC20 tokens are easy to use, allowing users to conduct transactions with ease and convenience.
Suitable for crypto crowdfunding
ERC20 tokens are well-suited for crowdfunding campaigns, making it easier to raise funds for projects and initiatives.
These core benefits make ERC20 tokens a preferred choice for many projects. Moving forward, let’s explore everything about TRC20 tokens.
Developing ERC20 token can be a straightforward task for skilled blockchain developers. Nonetheless, for those without prior knowledge or experience in blockchain development, it is advisable to seek professional assistance. The process of ERC-20 token development demands technical expertise and proficiency in programming languages.
The ERC-20 token standard is commonly employed to create and manage tokens on the TRON blockchain. Within the TRON network, the TRC20 standard outlines the regulations that all tokens must adhere to. This standard governs various aspects, including the issuance of new tokens, execution and approval of token trades, as well as token transmission and reception.
TRON was designed as an optimized version of Ethereum, aiming to offer lower transaction fees and faster transaction speeds compared to Ethereum.
Versatile and Liquid
TRC20 tokens offer seamless exchangeability with other fungible tokens, ensuring high liquidity in the crypto ecosystem.
Efficiency in Transaction Volume
Countless transactions can be executed using TRC20 tokens, providing users with efficient and flexible token usage.
Affordable Creation Process
Developing TRC20 token is cost-effective, making it accessible to a wide range of projects and users.
Scalability and Speed
The Tron blockchain boasts extensive scalability, handling over 2000 transactions per second without delays, ensuring a smooth and efficient network.
Low Transaction Fees
TRC20 transaction fees are significantly lower compared to other tokens, reducing user costs and enhancing cost-effectiveness.
Seamless Peer-to-Peer Transactions
TRC20 transactions can be conducted in a peer-to-peer manner, simplifying the process and reducing intermediaries.
Reliable and Accurate
TRC20 tokens offer holders high accuracy and reliability, bolstering their confidence in the token’s performance and value.
To create and issue new TRC-20 tokens on the TRON network, developers can utilize the website (https://developers.tron.network/). However, this process requires technical expertise and a comprehensive understanding of the programming language used for TRC-20 smart contracts. The developer must prepare the TRC-20 smart contract code, which specifies the token’s functionalities and rules. Once the contract is developed, it can be deployed on the TRON network, allowing the issuance of new tokens as defined in the contract. This process demands technical knowledge and proficiency to ensure the successful creation and deployment of TRC-20 tokens.
The BEP20 standard stands as the second most popular token standard for crypto token creation. Many new coins are being developed on the Binance Smart Chain (BSC) due to its impressive speed, high efficiency, and cross-chain compatibility features. Notably, BEP-20 was designed as an extension of ERC-20, encompassing all the functionalities of ERC20 tokens.
As the fundamental token standard of the Binance Smart Chain, BEP20 serves as the basis for all tokens on the BSC. It outlines the procedures for transferring, approving, and managing BEP20 tokens within the network.
High-Performance Standard in Crypto
BEP20 tokens showcase exceptional performance within the crypto space, making them a preferred choice for various projects.
Easy Market Entry and Fundraising
With BEP20 tokens, entering the crypto market becomes a straightforward process, allowing startups and projects to easily establish their presence. Additionally, these tokens offer a seamless way to raise funds for initiatives.
Cost-Effective Transactions and Creation
BEP20 tokens boast low transactional fees, providing users with a cost-effective solution for conducting transactions. Moreover, the creation cost of BEP20 tokens is affordable, attracting entrepreneurs to adopt them for their projects.
Wide Exchange Compatibility
BEP20 tokens enjoy broad compatibility on the Binance exchange and other reputable crypto platforms, ensuring high liquidity and accessibility for traders.
Booming Reputation in the Crypto Space
Due to their outstanding performance and widespread adoption, BEP20 tokens have gained considerable momentum, earning a well-deserved reputation in the ever-evolving crypto landscape.
Creating a customized and feature-rich BEP-20 token from the ground up undoubtedly demands the technical expertise of professional BEP-20 token developers. To ensure a smooth and efficient process, it is recommended to hire a reputable BEP20 token development company that can assist you in BEP20 Token Development process easily.
Also Read: Cost to create BEP20 token
Having gained insights into these three token standards, you may now be curious to discover the optimal token standard and explore the contrasts between ERC20, TRC20, and BEP20 token standards.
By following these steps, you can successfully execute the creation of a crypto token. Now, let’s conclude the topic by examining the cost associated with creating crypto tokens, which is of great interest to many entrepreneurs.
Token development is not limited to merely creating an icon and symbol.It involves building an application based on financial design mechanics. This process encompasses the implementation of various features and functionalities that define the token’s utility, security, governance, and economic model, making it a comprehensive financial instrument tailored to specific use cases and objectives.
So it is essential to note that the precise cost of crypto token creation cannot be predicted with certainty. The expense of developing a crypto token through a Crypto Token Development Company may start from $4500. However, Several factors such as the development company you choose, the number of tokens, the size of the development team, the preferred technology, and other considerations will significantly influence the overall cost of creating crypto tokens.
Now that you have gained insights into ERC20 Vs TRC20 Vs BEP20 token standards, you might be contemplating the next steps to create your own token. Whether you’re a startup, an established business, or an ambitious entrepreneur, the demand for token development services continues to surge. Building a successful crypto token goes beyond the technical aspects of smart contract creation; it requires a deep understanding of the underlying blockchain platform, the target audience, and the token’s specific use case.
The journey to creating and launching a crypto token is both exciting and complex. Armed with the knowledge of ERC20, TRC20, and BEP20 token standards, you can make informed choices to achieve your project’s goals. Whether you’re delving into decentralized finance (DeFi), non-fungible tokens (NFTs), or building innovative blockchain solutions, a well-crafted token is the foundation of your success. So, take the leap into the world of crypto token development and unlock the immense potential of blockchain technology.
