Token: A token is a digital coin issued on an existing blockchain that was designed for a specific project. It may sometimes be used interchangeably as crypto coins or cryptocurrencies.
Ethereum, Binance (Binance Smart Chain), and TRON are three of the most popular blockchains for crypto token development. The ERC-20, BEP-20, and TRC-20 token specifications are all used during crypto transfer between wallets.
This article will explain all you need to know about tokens, including what a token standard is and the different types of token standards.
What is a token standard?
A token standard is a set of functions that guide and determine how a token works. Each token is developed to be guided by specific rules that enable its compatibility and function. Furthermore, a token standard lays out how new tokens are produced, issued, and deployed on a specific blockchain.
Ethereum Token Standard: ERC-20, ERC-721, ERC-777, and ERC-1155.
Binance: BEP-20 for Binance Smart Chain and BEP-2 for Binance Chain.
Other Blockchains: Tron (TRC-20), NEO (Nep-5), Tezos, EOS, etc.
The three most popular types of token standards are: ERC20 (Ethereum blockchain) TRC-20 (TRON blockchain), and BEP-20 (Binance Smart Chain)
Let’s examine each of these in more detail, as well as the differences between them and how to choose the best and cheapest token standard.
1. ERC-20 Token Standard
What exactly is the ERC-20 Token Standard, and how does it function? The ERC-20 token standard is the most frequently used and popular in the world. The majority of the coins on CoinMarketcap.com are ERC20 tokens based on Ethereum. ERC-20 is also one of the most well-known and acknowledged standards for token production.
The abbreviation (ERC) is Ethereum Request for Comment. All tokens issued and running on the Ethereum network must adhere to the ERC-20 token standard. ERC-20 tokens are Ethereum smart contract-based tokens that may be bought, sold, and traded on exchanges. The ERC-20 token standard includes a variety of information, including:
Information on the total supply of tokens.
What method will be used to transfer the tokens?
What’s the procedure for withdrawing your tokens back?
Token balance in the account.
What method will be used to receive the tokens?
2. BEP-20 Token Standard
BEP refers to Binance Smart Chain Evolution Proposal and the BEP-20 standard is the second most popular for creating crypto tokens. Many of the new coins are being developed on the Binance Smart Chain, which is faster, more efficient, and provides cross-chain compatibility compared to ERC.
Binance has two different token specifications which are both interoperable. The Binance Smart Chain (BSC) token standard is BEP-20, and the Binance Chain token standard is BEP-2.
Because the Binance Smart Chain was created similarly to Ethereum Virtual Machine (EVM) The BEP-20 is compatible with ERC-20 tokens. Many cryptocurrencies like Bitcoin, Ether, Litecoin, and Tether, can be sent and received using both ERC-20 and BEP-20.
3. TRC-20 Token Standard
TRC-20 is a token standard for the TRON network that oversees the creation and maintenance of tokens. The TRC-20 standard specifies the rules that all tokens in the network must obey. Everything from issuing new tokens to executing and approving token transfers to sending and receiving tokens is covered by these rules.
All TRC20 tokens will be supported by specific digital wallets and will be able to be traded, moved, and shared as long as they follow the TRC20 contract’s rules, such as total supply.
TRON was created as a more efficient Ethereum clone with lower transaction fees and better transaction speeds than Ethereum.
Because the TRON Virtual Machine — the operating system for TRON smart contracts — uses the same Solidity language for contract construction as Ethereum, all TRON currency and smart contracts are interoperable with the Ethereum network. As a result, TRON tokens can be spent on the Ethereum blockchain and vice versa.
Unlike Ethereum, which uses the Proof of Work (PoW) consensus mechanism, the TRON network employs the Delegated Proof of Stake (DPoS) consensus technique, which is not only faster and cheaper than Ethereum but also features a number of unique features to satisfy the most recent requirements. The average block time on the TRON network is 3 seconds, which is much faster than Ethereum’s 15-second block time.
Major differences between ERC20, BEP20 and TRC20 token standards.
The inefficiency of Ethereum was, in fact, a major influence in the development of other blockchains. As Ethereum’s delayed consensus technique became inefficient and expensive as traffic and demand increased, TRON (2017) and Binance Smart Chain (2019) were created.
TRON’s delegated proof of stake (DPoS) consensus is demonstrably faster and cheaper than Ethereum’s, letting it execute more transactions in less time.
BEP-20 is also cheaper and only second to ERC-20 in terms of popularity, and it is rising swiftly thanks to the Binance Exchange’s growing global appeal.
Funds transfer on VIBRA is enabled for ERC, BEP, and TRC
Transfer of cryptocurrency has been made easy on Vibra and every wallet is made compatible with all three token standard networks.
This means that you can deposit or withdraw cryptocurrency using any of the above three popular token standards. With the 3 available options, you can choose the cheapest or the most popular network.
How to deposit funds on VIBRA
Go to wallet Homepage
Click Deposit
Click the drop-down arrow beside BTC to select the crypto you want to deposit e.g. USDT.
On the USDT deposit page, select network (ERC20/BEP20/TRC20)
Generate deposit address
Scan the QR code or copy the deposit address to receive funds from another wallet
Warning: To avoid asset loss, always confirm your withdrawal address and deposit address have the same token networks. e.g. only withdraw through ERC 20 network if you copy a deposit address on the ERC20 network. The same applies to BEP 20 and TRC 20 networks.
You are in charge!