Crypto token standards provide a set of predefined rules and criteria dictating a token's operation on its respective blockchain. These standards ensure compatibility, outlining the processes of token creation, minting, deployment, and destruction.
Being a subset of smart contract standards, token guidelines are crucial for blockchains with smart contract capabilities, steering the creation and deployment of new tokens. These standards are vital for tracking token performance and efficiency, assuring their interoperability and integration with existing applications.
Different blockchains often introduce various token standards to standardize the functions and parameters of tokens on their platforms. The list of token types is constantly growing and evolving but here are the main four we will focus on:
Note: -20 denotes ‘regular’ crypto coins, -721 is the NFT standard, -1155 represent multiple asset classes and in the case of TRON, TRC-10 is a technical token standard.
|Binance Smart Chain
|Solana Program Library
|Proof of Stake (PoS)
|Proof of stake authority (PoSA)
|Delegated Proof of Stake (DPoS)
|Proof of Stake (PoS)
|Highest among all
|Lower as compared to others
|Lower than ERC-20
|The lowest gas fees available
|Block Verification Speed
Please continue reading if you’re looking for a deeper-dive into the token specifics and advantages and disadvantages for each token type.
ERC, short for Ethereum Request for Comments, sets the standard for Ethereum-based tokens. Tokens on this platform follow the ERC-20 guidelines. Using Ethereum's smart contracts, these tokens can be traded across various platforms.
Moreover, while ERC-20 tokens are primarily designed for Ethereum, they can also function on the BSC and TRON networks. Their compatibility with most decentralized exchanges gives them an edge over TRC-20 tokens.
Decentralization in blockchains like Ethereum ensures that the failure of a few validators won't cripple the network, as there are numerous others to shoulder the load.
BEP-20 is a token standard introduced on Binance Smart Chain (BSC), an extension of the ERC-20 protocol, inheriting all its functionalities. Every token on BSC inherently follows the BEP-20 standard, outlining rules for token use, transfer, approval, and management.
BSC, a dedicated chain within Binance's ecosystem, supports smart contracts and decentralized applications (dapps). Notably, BSC is compatible with Ethereum's Virtual Machine (EVM), offering a swift and cost-effective transaction process. This compatibility means not only can you transfer ERC-20 tokens swiftly and cheaply using BEP tokens, but other tokens like Bitcoin, ETH, LTC, and USDT can also be transferred via BEP-20.
The advantages of BEP-20 are numerous: ERC-20 compatibility, Binance exchange support, inherent BEP-20 features, and cross-chain compatibility. Designed after the Binance Smart Chain's inception, BEP-20 has become its core standard, fostering innovation within the Binance ecosystem. While BSC was primarily established to integrate smart contracts, its compatibility extends to platforms and wallets originally built on Ethereum.
With BEP-20, the use of tokens like USDT becomes more efficient, minimizing transaction costs and times. Furthermore, these tokens remain supported on Ethereum-based platforms, offering flexibility and broadened utility.
TRC-20 is a standard for tokens on the TRON blockchain, defining their issuance, transfer, and other rules. Much like Ethereum's ERC-20 tokens, TRC-20 tokens offer speedy and secure transactions on the TRON network, playing pivotal roles in various TRON dApps, spanning gaming, finance, social media, and beyond.
Born as a streamlined version of Ethereum, the TRON network boasts quicker transaction speeds and reduced fees. As a public blockchain, anyone can issue tokens on TRON, adhering to the TRC-20 guidelines. These tokens can interact seamlessly with any entity or application within the TRON ecosystem.
Unlike Ethereum's proof-of-stake (PoS) consensus, TRON employs the more efficient delegated proof-of-stake (DPoS), marked by rapid transactions and cost-effectiveness, backed by numerous nodes and tailored innovations.
Though TRC-20 tokens, like USDT (TRC-20), are celebrated for their speed and affordability, they remain less sought-after compared to their Ethereum counterparts.
Solana is a high-performance blockchain platform designed to support decentralized apps and crypto projects at scale. The Solana protocol is known for its fast transaction speeds and low costs, making it an attractive platform for developers and projects.
SPL tokens are Solana's equivalent of Ethereum's ERC standards, like ERC-20 or ERC-721. SPL is a token standard on the Solana blockchain that allows for the creation, transfer, and management of fungible tokens on Solana. It's a way to standardize how tokens behave on the Solana network, ensuring consistency and interoperability.
Developers can use the SPL Token standard to create their own custom tokens on the Solana blockchain. Just like how Ethereum's ERC-20 standard led to a proliferation of various tokens and projects on the Ethereum network, the SPL token standard serves a similar function for the Solana ecosystem.
At the time of writing this piece, Savl Wallet supports ERC-20, BEP-20, TRC-20 & SPL token types with plans to integrate more over the coming weeks.
Four key token standards - ERC-20, BEP-20, TRC-20, and SPL - drive blockchain's progress and the digital economy. They offer developers tools for smart contract tokens and give users diverse application options. Knowledge of these standards, whether on BSC, Ethereum, or TRON, is vital in the crypto realm. Each brings distinct benefits, and deep understanding can enhance blockchain and digital asset use. As crypto evolves, these standards will spur further innovation in the global digital landscape.