The modern cryptocurrency world turned out to be complex and challenging to understand for many, especially for newcomers with minimum technical knowledge of blockchain and other aspects of this new industry. Luckily, it is not necessary for regular investors to understand all the specifics of this new technology. On the other side, those who have been involved in cryptography for some time now have been interested and excited about developing as well as investing in various digital tokens.
Indeed, it is possible to be constantly successful in the cryptocurrency space without technical knowledge. However, it is always good to have at least a basic understanding of some of the most important aspects of the digital crypto sphere that can serve as a guide to lead an investor toward the safest and most precise financial decisions.
An important concept associated with smart contracts and smart properties relates to what is known as a token standard.
What are token standards about?
A token standard contains a set of directives by which every single token on that particular standard is governed. It means that a specific token standard defines a particular mechanism to issue and establish new tokens on a specific blockchain.
By standard, we mean specific rules that a particular smart contract must follow to perform basic functions, such as creating new tokens or performing transactions.
ERC-20 token is an Ethereum token development standard responsible for a certain way for smart contracts to issue new tokens running on the second biggest blockchain – Ethereum. Besides ERC-20 and TRC-20, there are also options such as BEP-2 and BEP-20 crypto token standards.
What is ERC-20?
ERC-20 tokens run on the Ethereum blockchain, the second biggest after Bitcoin. This project aims to develop practical guidelines for tokens on smaller blockchains making peer-to-peer cryptocurrency payments. Thanks to that, it is possible to use it for secure and trustworthy ways of interacting between unknown users on the internet to make money exchanges. It is lucrative because it offers cheap, more stable, and globalized transfers using the smart contract method.
Developers already know that producing an ERC20 token is simple and affordable. The contract breaking risk is also low with the Ethereum network.
Besides that, it offers large liquidity together with increased revenue due to the global acceptance and wide range of ERC-20 tokens and its user-friendly way of using them. It is also one of the easiest ways to raise additional funds for a potential crypto startup project.
Developing an ERC-20 token can be a simple task for experts; however, with little to no knowledge of blockchain development, you should consider seeking help since it requires special technical expertise and skills in programming languages.
What is TRC-20?
The TRC-20 is a standard for launching and utilizing tokens created on another blockchain – TRON. This token standard defines commands that every token in this specific system must trace, such as issuing new tokens, approving a token transfer, sending and receiving these assets, and more.
This network was basically developed as a competitor to Ethereum, with the goal to become more efficient, with even lower fees and better transaction speed.
TRC-20 is the prototype used for issuing new tokens on its own blockchain. Since it is an open and shared blockchain, anyone can assemble and issue their tokens based on the orders fixed in the TRC-20 standard. All TRC-20 tokens can interact with other tokens and apps built on the TRON network.
TRON network also uses the Proof of Stake consensus method, which is one of the most efficient in terms of fast transaction speed and low cost. The TRON network has an average block time of 3 seconds per block when compared to Ethereum’s 15 seconds.
Is it worth operating with ERC-20 tokens?
ERC20 tokens have certain advantages in the commercial and investing fields, not only for developers but also for users.
First of all, it catches simple users’ attention by providing fast and efficient transactions. Thanks to it, the crypto processing is straightforward. ERC20 will also protect your wallet with a private key. What is more, transactions on the network are solid and highly secured.
Then, ERC20 effectively interacts with other currencies and offers a simple way to accept crypto payments on the website focusing on blockchain technology.
Consequently, after understanding all details about the ERC20, one might already see the ease of use and its advantages in the business and commercial sphere, with potentially attractive ways of getting additional profits.
Why is it better to utilize TRON than Ethereum?
The first reason is that TRON has a faster transaction rate. Since this blockchain is a highly efficient network, it has become recognized and gained popularity among developers. Compared to the Ethereum network, it is considered more efficient and secure.
Thanks to its powerful technology and numerous complex techniques, users of the TRON blockchain network enjoy a safer, systematic solution. Because of its faster processing speed, it is suitable for decentralized networks.
Many software engineers have been involved in the TRC20 development over the last years since its profitability. For the development of these tokens, each solid blockchain offers a variety of token specifications.
In order to launch it on the blockchain, consider the following:
Create a smart contract address and link it with your wallet to “Tronscan.” Once finished, release your TRC20 token and let others utilize it.
What might be next?
After last year’s cryptocurrency and blockchain boom, the crypto community has seen a massive increase in crypto trading and, for example, the use of particular cryptocurrency business accounts or applications on an international scale.
Ethereum smart contracts, as well as the TRON network, are becoming more and more popular, and tokens on these blockchains are on their way to gaining increasing significance across many spheres and aspects of our lives.
These are several procedures to consider while producing a TRC20 token. A factor to consider here is that producing a TRC20 token on your own may involve certain risks, such as internal quality of code and other issues. There is no way to predict the outcome of errors. Therefore, it might be good to find some additional help from experts in this field.