ERC-20, TRC-20, BEP-20: Comparing the Crypto Token Standards
If you’ve used our platform to exchange your USDT for cash, then you know we support TRC-20, and BEP-20 for our USDT transactions. If you’ve ever wondered what these terms represent, we’ve got the answers for you. Keep reading to find out.
CRYPTO TOKEN STANDARDS
ERC-20, TRC-20, and BEP-20 are crypto token standards. Crypto token standards are a set of rules that define the workings of tokens (creating, minting, deploying, and burning). Token standards specify the requirements which must be satisfied to ensure the token’s compatibility with the underlying blockchain and its interoperability with applications existing on it.
For context, a token is a digital currency built on an existing blockchain for several purposes (e.g., for transacting, representing company shares, providing voting rights, or fundraising). Usually, companies interested in creating a token may choose to simply find existing chains to build on rather than building their own blockchains from scratch.
Generally, Ethereum (ERC-20, ERC-721, ERC-777, ERC-115), Binance Smart Chain (BEP-20), and TRON (TRC-20, TRC-721, TRX, TRC-10) are most popular blockchains for developing tokens. While the different blockchains may have multiple token standards, this article will only focus on Ethereum’s ERC-20, BSC’s BEP-20, and TRON’s TRC-20.
ERC-20: What is it and How does it work?
ERC-20 is the standard for creating tokens on the Ethereum blockchain. It is the most popular and most used token standard of all time. A great number of crypto tokens are built on the Ethereum network. On the one hand, “ERC” stands for the “Ethereum Request for Comment.” On the other hand, “20” refers to the 20th proposal (made by Fabian Vogelsteller in 2015).
Tokens developed with the ERC-20 standard are called ERC-20 tokens. These are fungible tokens. Fungible in the sense that each ERC-20 token is equal and indistinguishable from another token of the same kind. As ERC-20 is one of the oldest and most trusted token standards, ERC-20 is supported by almost every wallet and exchange.
Moreover, the transactions involving ERC 20 tokens are fast and effective. Equally, the contract-breaking risk is low. ERC-20 tokens are usually user-friendly and very secure. Notably, custom crypto tokens based on the ERC-20 standard can also be used in the BSC and TRON networks.
BEP-20: What is it and How does it work?
BEP-20 is based on the Binance Smart Chain (BSC). BSC is a dedicated Binance blockchain network for running smart contracts and DApps. Currently, BEP-20 is the second most popular crypto token standard, as many new tokens are being developed on BSC because it is faster, cheaper, more efficient, and supports cross-chain compatibility.
BEP-20 is an extended version of the ERC-20 token standard with all the ERC-20 features. As such, you can use the Binance Smart Chain (BEP-20) to transfer ERC-20 tokens faster and at a very low cost. Similarly, many other tokens, like Bitcoin, Ether, Litecoin, and USDT, can also be transferred using BEP-20. Another advantage of the BEP-20 token system is that many wallets support it.
TRC-20: What is it and How does it work?
TRC-20 tokens run on the TRON blockchain and use the network’s facilities. The TRON network was created to offer a more efficient clone of Ethereum. The network has lower fees and faster transaction speed (with an average block time of 3 seconds per block) than Ethereum (15 seconds per block).
Since the TRON smart contracts operating system (TRON Virtual Machine) uses the same Solidity language as Ethereum, TRON tokens and smart contracts are seamlessly compatible with Ethereum’s network. As such, TRON tokens can be used on the Ethereum network and vice versa.
CONCLUSION
The primary point of difference between these three most popular token standards is the underlying network on which they run. While ERC20 tokens run on the Ethereum blockchain, TRC20 tokens are built on the TRON blockchain, and BEP20 tokens are based on BSC.
EXCHANGE YOUR USDT FOR NAIRA ON VENT AFRICA!
Vent Africa continues to be the leading platform for crypto-to-cash transactions. You can convert your USDT to cash on our platform using BEP-20, or TRC-20, at the best rates and with no fees charged.
