What are ERC-20 & TRC-20?

ERC-20 tokens run on the Ethereum blockchain, the second biggest after Bitcoin. The TRC-20 is a standard for launching and utilizing tokens created on another blockchain, TRON

7 min readJun 30, 2022

The difference between ERC-20 and TRC-20

To understand what is ERC-20 & TRC-20, we must start with the token and token standard 1st. The token is a script that runs on the Ethereum and other main stream blockchain. It is widely used for financial transactions in various industries depending on its purpose. The token has some value in itself and most importantly the value of the token is not fixed, it varies on the basis of the domain, usage and scope.

There are more than four thousand tokens available in the market and all have their own aims and value. Normally, tokens are created by keeping the purpose in mind which can be personal, business, etc. Tokens are created by writing and deploying smart contracts on popular blockchain platforms such as Ethereum, Tron, Binance Chain, EOS, etc.

Ethereum has multiple token standards, including ERC-20, ERC-721 and ERC-1155 — Ethereum has multiple token standards, including *ERC-20, ERC-721 and ERC-1155*

What is the token standard?

A token standard is a collection of rules that govern all tokens on that standard. To put it another way, a token standard specifies how new tokens are created, issued, and deployed on a given blockchain. ERC-20 token creation, for example, is an Ethereum token development standard that makes it simple for developers to create new tokens on the Ethereum network. ERC20 tokens will all have the same properties and be governed by the same set of rules.

How Many Different Token Standards Are There?

Every blockchain can have its own token standard, and sometimes more than one. For example, Ethereum has multiple token standards, including ERC-20, ERC-721 and ERC-1155. Among these, the most used crypto tokens by the crypto enthusiasts are the ERC-20 and the TRC-20 token standards on TRON blockchain.

ERC-20

The ERC-20 stand for (Ethereum Request for Comments 20), proposed by Fabian Vogelsteller in November 2015, is a Token Standard that implements an API for tokens within Smart Contracts. ERC-20 currently is the most popular and used token standard of all time. Most of the tokens you see on Crypto exchange and (DEX) are ERC20 tokens built on the Ethereum network. ERC-20 is also one of the oldest and most trusted standards for creating tokens.

The ERC-20 introduces a standard for Fungible Tokens, in other words, they have a property that makes each Token be exactly the same (in type and value) as another Token. For example, an ERC-20 Token acts just like the ETH, meaning that 1 Token is and will always be equal to all the other Tokens.

The ERC-20 token standard must be followed by all tokens generated and running on the Ethereum platform. ERC-20 tokens, which can be bought and sold and exchanged on exchanges, are created using Ethereum smart contracts.

The ERC-20 token standard incorporates a wide range of data, such as Information on the total token supply, What is the procedure for withdrawing the tokens? etc.

For developers, creating an ERC-20 token is rather simple. However, if you have no prior experience or knowledge of blockchain creation, you should seek professional assistance, as ERC-20 token development necessitates technical competence and programming language knowledge.

Opensea is the world’s first and largest marketplace for NFTs

NFTs Are Non-Fungible Tokens (ERC-721 & ERC-1155)

As well as being well-known in the collectibles and gaming industries, non-fungible tokens (NFTs) have been at the forefront of the blockchain and crypto industries for quite some time now. In addition to games and collectibles, NFTs have a host of other uses. Smart contracts like ERC-721 and ERC-1155 are being used by developers all over the world to build whole virtual worlds, although mass adoption is still in its infancy.

Because of this, NFTs are being used in a wide range of industries, including music, fashion, and the internet of things. We are still in the early stages of mass adoption for ERC-721 and ERC-1155 smart contracts, but developers are using them to create whole virtual worlds.

In addition, NFTs can be used across many industries, including music, fashion, IoT, and many more. Tokenizing unique individual objects and properties in collectibles and crypto games is currently most widely done with the ERC-721 standard. The standard provides basic features to transfer and track ownership of unique individual objects.

A standard called ERC1155 which is widely used in the gaming industry permits the management of fungible, semi-fungible, and non-fungible tokens. In these kinds of games, it’s of utmost importance since the elements are fungible (like life/energy) as well as non-fungible (like weapons and other collectibles).

TRON was established as a more efficient Ethereum clone, with cheaper transaction fees and faster transaction speeds

The TRC-20

The TRC-20 token standard is used to create and manage tokens on the TRON blockchain. The TRC20 standard establishes the regulations that must be followed by all tokens in the network. These rules cover everything from issuing new tokens to conducting and approving token transfers to sending and receiving tokens. All TRC20 tokens will be supported by specialized digital wallets and will be able to be swapped, transferred, and shared as long as they fulfill the TRC20 contracts’ requirements, Apart from that, TRC20 tokens may also adhere to the Token Name, Token Abbreviation, and Token Precision standards.

TRON was established as a more efficient Ethereum clone, with cheaper transaction fees and faster transaction speeds. All TRON coins and smart contracts are interoperable with the Ethereum network because the TRON Virtual Machine as the operating system for TRON smart contracts are employs the same Solidity language for contract development as Ethereum. TRON tokens can therefore be used on the Ethereum network and vice versa. TRC-20 is the TRON blockchain’s standard for creating new tokens. Because TRON is a public blockchain, anyone can develop and issue their own tokens in accordance with the TRC-20 standard. All TRC-20 coins can communicate with one other and with other TRON tokens and apps.

Unlike ETH, which uses the Proof of Work (PoW) consensus mechanism, the TRON network uses Delegated Proof of Stake (DPoS) consensus method, which is not only more efficient in terms of fast transaction speed and low cost but also is built with many unique innovations to suit the latest requirements. The TRON network has an average block time of 3 seconds per block, which is far better than Ethereum’s 15 seconds block time.

On the TRON network website, new TRC-20 coins can be produced and issued. To do so, the developer must write TRC20 smart contract code, which necessitates technical knowledge and comprehension of the programming language. After the contract has been created, it can be distributed on the network and new tokens can be issued.

The pros and cons in between ERC-20 and TRC-20

The Pros and Cons of ERC-20 and TRC-20

Blockchain network: Ethereum network is used for ERC and Tron network is used for TRC type tokens.
Block verification speed: Ethereum block processing time is 15 seconds but TRON is 5 times more efficient than the Ethereum network as a recorded block processing time of 3 seconds per block
Gas Fee’s: ERC-20 has to pay the gas fees almost two times of the TRC-20 gas fees.
Address style: The address style commences with 0 and x for ERC tokens, whereas it begins with a T for TRC tokens.
In Safety Consideration: You might want to choose ERC 20 because the safety measures are quite high in ERC tokens when compared with the TRC type crypto tokens.

Final thoughts for this tokens

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. Therefore, it might be good to find some additional help from experts in this field.