Everything You Need to Know About Crypto Token Standards

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In the early 2010s, crypto was still new and exotic. There were few cryptocurrencies besides Bitcoin, as creating an efficient decentralized peer-to-peer system required time, skills, and significant investments. 

The game changed in 2015 as Ethereum, a smart-contract-based platform, was introduced. It allowed third-party developers to create new crypto tokens on the Ethereum blockchain in minutes. Currently, several major crypto ecosystems also offer the same service, leaving us with various choices. 

What is a token standard? 

A token standard is the set of rules, conditions, and functions that dictate how a crypto token works. It usually involves smart contract technology — a computer protocol intended to complete automatically. Developers can choose a token standard to create new cryptocurrencies on existing blockchains based on their personal preferences and goals. 

Ethereum token standards 

The ETH ecosystem is the most widely used in token standards. Currently, the market cap of all Ethereum-based tokens exceeds $240 billion. The platform offers various protocols for different occasions. Let’s focus on the main ones: 

The top choice for standard fungible cryptocurrencies. Allows customizing the token’s utility, including voting rights and rewards. The most popular ERC-20 cryptos are DAI, SHIB, MATIC, and UNI. Moreover, many separate assets are also present in the ERC-20 ecosystem, such as USDT and BUSD. A standard for non-fungible tokens, like a deed for artwork or a song.ERC-721 is often used for NFTs and the blockchain gaming industry. The most popular tokens are ODOS.xyz, LEGION, and Arbitrum. 

This protocol allows developers to add extra functionality to their tokens. ERC-777 can be utilized for creating a crypto mixer for higher anonymity or an emergency recovery feature for restoring private keys. 

ERC-1155 aims to combine the benefits of previous standards and enables you to create both fungible and non-fungible tokens. This protocol solves one critical ERC-721 challenge: it enables batch transfers for non-fungible assets, such as NFTs. It is a tokenized vault standard that optimizes and unifies the technical parameters of yield-bearing vaults.ERC-4626 allows the developers to use a common standard rather than creating additional adapters during the integration. 

Tron token standards 

The Tron ecosystem strives to create the next-generation decentralized web with instant and cheap transactions. Many developers prefer Tron to Ethereum due to its higher speed and low fees. Moreover, the most popular Tron protocol, TRC-20, is reasonably compatible with ERC-20, allowing users to swap such tokens easily. 

TRC-10 TRC-20 TRC-721 
It is a technical token standard supported by the TRON blockchain. Since TRC-10 does not require the TRON Virtual Machine (TVM) to function, the TRC-10 fees are practically non-existent. It is a technical standard used for smart contracts on the TRON blockchain for creating tokens with the TMV). TRC-20 is fully compatible with the Ethereum blockchain. 

It is a set of standard interfaces used to create non-fungible tokens, such as NFTs. TRC-721 is fully compatible with Ethereum’s ERC-721. 

BEP-20 (Binance Smart Chain) 

Binance is gaining popularity as a platform for third-party developers to issue new cryptocurrencies. The most common token standard is BEP-20 (Binance Smart Chain), which offers similar functionality to Ethereum and is compatible with ERC-20. 

Read more:  What Is a Crypto Card and How to Use It?

Are there more token standards? 

Yes, there are. For instance, NEO, OES, and Tezos offer various token standards, but they are not as widely used. In case you are a developer who wants to create a cryptocurrency, pay attention to the reliability and compatibility of the chosen platform.