ERC20 vs TRC20 vs BEP20: A Comparison Guide

With a wide range of options and functions the crypto token industry provides businesses with versatile options. Most of the time, choosing the right token standard or network is a big task. Where paying no keen importance leads to failure. Most commonly the confusion and the debate are around ERC20 vs Bep20 vs TRC20 - which is better? What to choose? And everything. If you are someone who is mulling around the same. This guide on ERC20 vs Bep20 vs TRC20 will help you clarify how your choices should align when you kick-start your token development journey with your developer.

Let us dig in from the basics!

What Are Token Standards?

Token standards of a crypto token can be defined as a set of rules that define the digital token's property, from its creation, use in blockchain, managerial properties, etc. These set of rules, protocols, and specifications provide a proper designation for the token on its behavior and usage. This also defines the token interaction with the blockchain environment.

As these token standards rely on Smart contracts, it's important to address that. Smart contracts fundamentally mean a set of rules that the token complies with itself to perform certain functions on the blockchain network. Where the Token standards, are application-level specifications with name, work history, format, etc.,

Token Standards play a fundamental role in shaping a token, that provides its working mechanism, provides the token framework, ensures uniformity, token compatibility, within the ecosystem and cross-platform integration, wallet integration, etc. Through this, the pivotal role of token standards is to establish consistency, interoperability, multifacet usage, and more.

Understanding token standards makes navigating through complex decentralized finances and digital asset management easy. Eventually, several blockchains have established their new tokens and token standards that are uniquely tailored to their needs and purpose, including specific use cases.

Token standards are the subset of smart contracts that define clear parameters and enable tokens to perform basic functions, the blockchain token standards are a guide for creating, issuing, and deploying new tokens on the network.

Here are the Basic Qualities of Token Standards

Compatibility

ensuring the token standard allows different tokens and Dapps to work together.

Ability to Launch a New Token

with defined goals, through token standards the people are allowed to create new tokens meeting their requirements.

Track Records

consistent record keeping provides open information, while access to alter is restricted.

Overview of ERC20, TRC20, and BEP20

What is ERC20?

Ethereum blockchain-based token, ERC20 is a technical standard used to create tokens that defines a set of pre-set rules for a token to inherit to function. To seamlessly carry out its functions, the token has to adhere to those rules ensuring interoperability and compatibility on Ethereum-based applications and ecosystems.

How to Create an ERC20 Token?

1. Start with choosing your ERC20 token development environment, whether it be Remix, Truffle, or Hardhat. Understand the requirements and goals of the token.

2. Using a solidity framework, write codes for your token defining the token properties which include the name, symbol, supply, and other aspects, its functions like the ability to transfer, approve, etc.

3. Now go ahead to compile the solidity code into Bytecode and deploy the compiled smart contract on Ethereum Test Net for testing.

4. Post passing all the tests, and meeting the regulations you can go ahead to launch it on the mainnet and mint the token using the mint functions.

Coding Functions of ERC20

totalSupply() : goes to the total supply of tokens.

balanceOf(address): the balance of a specific address.

transfer(address, uint256): To transfer tokens from one address to another.

transferFrom(address, address, uint256): allowing third-party token transfer for another address.

approve(address, uint256): approving specific tokens for a designated spender.

allowance(address, address): returns the approved token for a spender.

What is TRC20?

TRC20 token is a similar technical standard to ERC20 while this is the most predominantly used token standard on Tron blockchain. There are quite few similarities among Tron token development and other tokens, while this TRC20 is particularly created for Tron Blockchain.

How to Create a TRC20 Token?

1. Set up your development environment with Tron framework and choosing solidity for smart contract creation would be an ideal choice

2. Using TronBox would be helpful for a new project directory and writing your code on a smart contract with an ideal name, symbol, token supply details, decimals, etc.

3. Integrate its required functions and compile the smart contract code on solidity with bytecode.

4. Deploy on the testnet to see and identify potential threats. Rectify them and launch the token on the mainnet.

5. Using the minting function, mint the smart contract for new token creations.

Coding Functions of TRC20

name(): goes to the name of the token.

symbol(): the symbol of the token.

decimals(): indicates the number of decimal places.

totalSupply(): displays the total supply of tokens.

balanceOf(address): the balance of a specific address.

transfer(address, uint256): transfers tokens between two addresses.

transferFrom(address, address, uint256): allowing third party to transfer tokens

approve(address, uint256): approve a specific amount of tokens for a designated spender.

allowance(address, address): the approved amount of tokens for a spender.

The above is the list of core functions. Based on the customization and function that has to be added in, the functions can be customized accordingly.

What is BEP20?

BEP20 is a Binance smart chain-based token standard used on the parallel chain of Binance. The highlighting feature is the ability to make comparatively quick transactions at a low cost.

How to Create a BEP20 Token?

1. Hardhat or Truffle are generally used in the development framework of the Binance smart chain and solidity for smart contracts.

2. Understand the requirements and expectations around the project. Create a new project directory on the framework you choose.

3. Write smart contracts defining the token name, symbol, total supply, and decimals, and also get to define its functions.

4. Compile the smart contract on the framework and deploy the contract on testnet for testing.

5. And post the approval from testnet, the token is ready to launch on the mainnet. With the minting function, the tokens can be minted.

Coding Functions of BEP20

name(): goes to the name of the token.

symbol(): the symbol of the token.

decimals(): indicates the number of decimal places.

totalSupply(): displays the total supply of tokens.

balanceOf(address): the balance of a specific address.

transfer(address, uint256): transfers tokens between two addresses.

transferFrom(address, address, uint256): allowing third party to transfer tokens.

approve(address, uint256): approve a specific amount of tokens for a designated spender.

allowance(address, address): the approved amount of tokens for a spender.

The above is the list of core functions of BEP20. Based on the customization and function that has to be added in, the functions can be customized accordingly. Also note to incorporate required security features, and follow BSC best practices during the bep20 token development process.

Key Difference Between ERC20, TRC20, and BEP20

The key difference between the ERC20, TRC20, and BEP20 tokens, is they individually belong to three different blockchain networks. The Tether token (USDT) with the ability to adapt to the blockchain network, makes it stand out from others while showcasing flexibility. It also plays a significant role in emerging the crypto world with versatile options like stablecoins, compensating traditional money with widened crypto space.

Tether (USDT) plays a significant role in the crypto world as a stablecoin, bridging traditional money systems with the expanding crypto space. It operates on both the Tron and Ethereum blockchain networks, following the TRC20 and ERC20 token standards despite meeting the purpose of being a stable digital currency for US dollars.

These are a few differences that affect the transaction speed, the cost involved, the compatibility of the network, and much more. Understanding these nuances and capabilities of each network keeps them informed and aware of handling digital assets.

Transaction Speed

USDT transitions happen on the Tron network which has a high transaction put through at a faster time. The efficiency of a unique consensus mechanism of Tron enables fast, cost-effective transactions when compared to Ethereum. While BEP20 with its proof of stake mechanism, the time involved in the transaction takes a couple of minutes.

Transaction Cost

The Ethereum Network processing ERC20 USDT transaction, there is a higher transaction fee involved, and this is comparatively more during the congestion period. While TRC20 USDT has a comparatively lower fee on the Tron network. This is the most economical choice for users to make frequent fund transfers.

Network Compatibility

On the Ethereum Blockchain ERC20 seamlessly works on the extensive Ethereum ecosystem including different decentralized applications and exchanges. This compatibility makes the token acceptable and usable across the world. On the other hand, the TRC20 is designed for the Tron ecosystem very particularly. As the TRC20 token experiences substantial support, it also faces the limitation of interacting with other platforms. The compatibility is lacking.

Blockchain Technology

The technology used in TRC20 and ERC20 is shaped by the Tron and Ethereum network which provides A strong, secured foundation and compatibility for the token. It also ensures reliability and security for tokens which captivates most of the user's interests. This would give a good idea to the users making frequent transactions to make perfect network choices.

Other Factors of Difference Include

Ecosystem:

TRON has a complete ecosystem with community, developers, and decentralized applications, while BSC20 integrated with Binance and ERC20 with Ethereum, they don't have a specific set of ecosystems around it, while it is a part of the network’s ecosystem.

Address Structure:

The ERC20 token address starts with o and x, for TRC20 it is T and for BEP20 it is Ox.

These are a few important differences that have to be noticed and mindful of while understanding TRC20, ERC20, and BEP20 tokens while designing their functionality in the crypto world. These also provide the knowledge of token awareness, helping us to make wise decisions based on the compatibility of the network, advancement, technological setup, etc.

Key Features of Each Standard

TRC20 Tokens:

1. TRC20 Tokens on Tron offer high scalability at a lower transaction fee, ideal for empowering DApps and smart contracts.

2. The robust ecosystem provides Tron the opportunity to develop tools and a vibrant community for innovation at ample of spectrum.

3. The centralization and governance issues are addressed here on TRC20 gaining more attention and traction.

ERC20 Tokens:

1. The backbone of decentralized finance ERC20 token is a fundamentally decentralized token that strengthens the ecosystem.

2. The interoperability and liquidity of the token broaden the active infrastructure of the Ethereum network with new possibilities.

3. Decentralization is an innate nature of Ethereum enhancing security, transparency, resilience, and scalability.

BEP20 Tokens:

1. Comparatively lower gas fee for BEP20 token on the Binance smart chain which has compatibility on Ethereum. They can also make fast transactions.

2. The DPos Consensus of the BSC makes it stand out from the rest which facilitates speed, efficiency, and much more.

3. The BSC validators are conscious of the centralization concern to be more secure for users.

Comparison of Minting ERC20 vs TRC20 vs BEP20

Which One Should You Consider Among ERC20, BEP20, and TRC20 Tokens for Creation?

The choice of creating a token for your project or to support any operations in the business, will have to meet certain requirements and at the same time meet your needs, target audience, goals, etc., we have brought to you the major aspect of consideration to make well-informed decisions.

Pros and Cons Of Ethereum

1. Ethereum is a well-established and widely recognized network. It has a large developer community and ecosystem, where its security range and reliability is high.

2. On the other hand, the transaction fee and potential network congestion are major setbacks.

Pros and Cons of TRON

1. The transaction fee is comparatively lesser to ERC20, the network can quickly process transactions and the community is eventually growing with potential benefits.

2. While there are a few security concerns and the ecosystem is smaller.

Pros and Cons of Binance Smart Chain

1. The transaction-free is much less when compared to the other two, there is high scalability and a very strong community in Binance backing the ecosystem.

2. While there are security concerns on the network as it's new and experimenting.

Based on this, here is a list of a few key factors for you to consider while choosing to develop and launch your token.

1. Based on your target audience and the investor you will be targeting as buyers of your token, your choice of network and token should be compatible. On a general note, Ethereum can go with any specific need and for a larger community, while BSC and Tron are more specific to gamers, DeFi, etc.

2. Based on the specific use case that your token is going to facilitate the choice of network should be chosen. To meet DeFi tools and protocols with a larger ecosystem, of course, Ethereum is the best. While for your specific need, Tron and BSC will also match that up.

3. Cost is a major factor, BSC costs lower transaction fees. The development fee of the token would vary based on the developer and not mostly on the Network choice. Meanwhile ensure your solution is secured, scalable, and upgraded. Compromising on these factors is nowhere leading toward growth.

4. The time involved in development, and minting also is a considerable factor.

Conclusion

Hope this detailed guide gave you clarity on how you can choose between ERC20 vs BEP20 vs TRC20 clarified your major questions about token development. We at BlockchainX provide you with extensive token consultations and development services to help you build your custom token for your custom needs. Get into your Token development journey started with us!