Crypto is a hot topic across industries today. And many leaders, entrepreneurs, and innovators are building their own crypto solutions to stay ahead of the competition. Among all of their available choices, Ethereum and Tron are the two of the most popular blockchains used for crypto development. In the same essence, it’s quite a worthy discussion for developers to choose the right to suit their requirements one among the two. Tron uses TRC-20 and Ethereum uses ERC-20 token standards respectively. Let’s deep dive and talk about everything concerning these token standards.
What is A Token Standard?
Every blockchain can have its own token standard, and in some cases, it’s more than one. One can define a token standard as a set of rules that provides a mechanism to create, issue, manage and deploy new tokens on a specific blockchain. These rules include (but are not limited to) the rules for issuance of new tokens, performing and approving a token transfer, sending and receiving tokens, and more.
For example, ERC-20 provides an easy way for developers to build new tokens based on the Ethereum blockchain. Here, in this case, all ERC20 will have common properties and further, will be governed by the defined standard.
TRC-20 Token Standard
Tron is claimed as a more efficient clone of Ethereum and offers lower fees with faster transaction speed. Since Ethereum mining is impractical because of the very high fees, alternatives like Tron have emerged & are now being widely accepted.
All tokens here are supported by specific digital wallets and can be transferred, swapped, and shared, given that they are following the rules specified under their TRC20 contracts. The Tron network has an average block time of 3 seconds per block, which is far better than Ethereum’s 15 seconds block time.
In TRC-20, TVM is used as the operating system for TRON smart contracts. Since the TVM (or Tron Virtual Machine) uses the same solidity language for contract programming as Ethereum, all TRON tokens and smart contracts are seamlessly compatible with the Ethereum network. This implies that a user with Tron tokens can use it as a commodity to be used on the Ethereum network, and vice versa.
TRC-20 Token Development
One can create and issue new TRC-20 tokens on the TRON network website https://developers.tron.network/). In order to start a project on TRC20 standard, the developer must prepare the TRC20 smart contract code first. One will of course require the technical knowledge and understanding of the programming language for this. And once done building the smart contract, you can deploy it on the network and new tokens can be issued to users on the contract.
ERC-20 Token Standard
ERC stands for Ethereum Request for Comment. As Ethereum is the second-largest cryptocurrency, ERC-20 is the most popular and used token standard of all time. In fact, most of the tokens you see on CoinMarketcap.com are ERC20 tokens only. It is claimed as the oldest and most trusted standards for creating tokens by many developers across the globe.
One can create an ERC20 token in an easy and affordable manner. Moreover, what is even better is that the transactions involving ERC 20 offer quick transaction confirmation. These ERC-20 tokens can also be bought and sold as well as traded over the exchanges.
The tokens created with this method also are user-friendly, secure, and come with dedicated wallets. Currently, ERC-20 is the easiest way to raise funds for a crypto startup project for many startup companies worldwide.
Conclusion: TRC20 vs ERC20
While ERC-20 transactions are fast, effective, and globalized, users do have to bear the high gas fees of the network.
Unlike ETH, which uses the Proof of Work (or PoW) consensus mechanism, the Tron network uses Delegated Proof of Stake (or DPoS) consensus method. This is what makes Tron more efficient in terms of faster transaction speed and low cost. Also, Tron is built with many unique innovations to suit the latest requirements of the tech wherein ERC-20 still continues to be a work in progress. And though you can expect higher liquidity and better global acceptance with the wide reach of ERC-20 tokens, the development cost of the ERC20 token might cause an issue for some projects.