What do you mean by Token and Token Standard ?
A token is a type of crypto which is created for a specific project and uses and is built on top of an underlying blockchain. Tokens are one of the most common methods used by web 3.0 startups or organizations who want to raise funds for their project. There are three common blockchains used for developing crypto tokens – Ethereum, Binance, and Tron.
Individiual blockchains have their own Token Standard i.e a set of rules governing the tokens. Simply explained a token standard defines a procedure to help create, issue and deploy tokens on that blockchain.
Example: BEP-20 is a token development standard that provides developers steps to create and deploy tokens on the Binance Blockchain. ERC-20 (Ethereum), BEP-20 (Binance), TRC-20 (TRON) are the most commonly used token standards. A blockchain can have more than one token standard- Ethereum has multiple ones like ERC-10, ERC-20, ERC-721.
The oldest, most trusted and most used token standard. Majority of the tokens are built using the ERC-20 token standard. Log onto coinmarketcap, the bulk of the tokens you will find there are ERC-20. The full form of ERC is Ethereum Request for Comment. All the tokens created and running on the Ethereum blockchain have to follow the rules of ERC-20 token’s standard. The tokens use the Ethereum Smart Contracts to run and can be traded on exchanges. The ERC- 20 standard contains a lot of valuable information like, total Supply of the Token, Details about the transfer of the Token, Balance of the tokens in an account, Withdrawal of Tokens, Deposit of Tokens or how you can receive them.
Advantages of ERC-20
- It is easy and affordable.
- The transactions are quick with immediate transaction confirmations.
- Contract breaking risk is minimum with the Ethereum Network.
- Higher Liquidity and in-turn revenue since ERC-20 tokens are globally accepted.
- The development process is cost-effective as well as time-saving.
- Tokens are user-friendly, highly secure and have dedicated wallets.
- Tokens created using ERC-20 i.e on the Ethereum Blockchain can be used on the BNB chain and the Tron network.
How to Create an ERC-20 token ?
Building an ERC-20 token can be a piece of cake for any developer but unfortunately if you do not have any knowledge about blockchain development, you will need professional help here. You will require a technical know-how of various programming languages.
This comes second in line as the popular token development standard. One of the key advantages of using the Build and Build chain BNB (which was formerly known as the Binance Smart chain or BSC), is that its more fast and efficient along with being cross-chain compatible. The BEP-20 token was actually created as an extension of the ERC_20 hence it has adopted all its properties.
It is the primary token standard of the BNB Chain and all the tokens by default run using the BEP-20 standard. Earlier there were two standards that were running BEP-20 as BSC and BEP-2 as the Binance Chain which was combined to form the BNB chain. One important thing which many people don’t know is that BNB chain is compatible with ETH and offers a quicker, cost-efficient process for transactions. You can use the BNB chain to transfer ERC-20 tokens at a faster speed and by paying less gas fees. Infact other tokens like Bitcoin, Litecoin, Ether can also be transferred using BEP-20.
- Support of Binance Exchange.
- Multi-wallet Support.
- Built in features of ERC-20
- Faster and Cheaper
- Cross-Chain Compatibility.
How to create a BEP-20 token ?
The process to create a BEP-20 token is far easier if you compare it with that of ERC-20. You do not need to be a master developer to create a BEP-20 token, you can do it without any expertise. Though if you want customizations and want to build a token from its base, you will need technical guidance.
It is a token standard for building and regulating tokens on the Tron Blockchain. It contains all the rules right from issuing a token, performance and approval of transfer, etc. The tokens are supported by specific wallets. The Tron network has created a more efficient version of the Ethereum network by providing faster speeds with cheaper fees.
The Tron Virtual Machine uses the same operating system and the same programing language i.e Solidity for its smart contracts as Ethereum, all tokens and smart contracts are compatible with the Ethereum network. Tron is a public blockchain and anyone can create or issue tokens according to the rules laid out in the TRC-20 standard. The TRC-20 tokens help in communicating with other tokens and dapps on the Tron Network.
The Tron network uses Delegated Proof of Stake consensus mechanism which helps providing faster transactions as well as low costs. The average block time of the network is 3 seconds per block as compared to Ethereum’s 15 seconds per blog.
How to create a TRC-20 token?
To create a TRC-20 token you need to prepare a smart contract code on the Tron network website portal. Obviously if you do not have technical knowledge of programming languages. After creating the contract, you can deploy it on the network and create tokens.
The main difference between each standard is the network on which they are built. All 3 use Solidity language and cross-chain transfers are possible. The process of creating and deploying the tokens is also almost same. The differences lie in the fees and ease of use.
Tron can basically be described as a clone of Ethereum, with higher speed and low fees. As demand increased, it became practically difficult to use Ethereum with the high gas fees and low efficiency, as a result Tron and BNB were created.
Comparing the three, BNB has emerged at the top for token development as Binance has somehow found a way to keep the fees low in-spite of the growing demand, along with the ease to create new tokens without much programming knowledge. A big fact check is that Ethereum’s average network fees is almost 200 times more as that of BNB network.
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