Truly Crypto 101
Published in

Truly Crypto 101

What Are the Differences in TUSD’s Token Standards?

Stablecoins have become an integral part of the crypto market, but those who are indulging in DeFi and stablecoin yield farming may not pay attention to the token standards they use every day for different blockchains. However, this is indeed something worth thinking about: which token standard is the most suitable for you? Truly is here to walk you through the most popular token standards today. Hope you can have a better idea of what they are after reading.

What Is a Token Standard?

A token standard is composed of a set of rules by which all tokens following this standard are bound. In other words, a token standard defines the mechanism of creating, issuing, and deploying new tokens on a certain blockchain.

For example, ERC-20 is a token standard that provides developers with an easy way to create new tokens based on the Ethereum blockchain. All ERC-20 tokens share common properties and are governed by the same rules.

How Many Different Token Standards Exist?

Every blockchain may have its own token standard, or sometimes standards. For instance, there are multiple ones on Ethereum, such as ERC-10, ERC-20, and ERC-721, while TRON follows TRC20 and TRC10.

The most popular token standards now are ERC-20 (Ethereum), TRC20 (TRON), and BEP-20 (BNB Chain).

The four standards commonly used for TUSD are the following:

  • Ethereum: ERC-20
  • TRON: TRC20
  • BNB Chain: BEP-20
  • Avalanche: AVAX C-Chain

In addition, TUSD has been deployed on eight other public chains, some versions following the mainnet’ native token standard such as:

  • Binance Chain: BEP-2
  • Fantom
  • Polygon
  • Cronos
  • Heco
  • Arbitrum
  • Aurora
  • Optimism

TUSD’s contract addresses on different chains

Having introduced the concepts and types of different token standards, Truly will now elaborate on their difference and similarities by taking the standards applied to TUSD on Ethereum, TRON, BNB Chain, and Avalance as examples.

ERC-20 Token Standard

As one of the earliest and most trustworthy standards, ERC-20 is the most popular among others. Most tokens on CoinMarketcap are ERC-20 tokens created on Ethereum.

All tokens created and traded on Ethereum must follow the ERC-20 token standard. Ethereum smart contracts are used to create ERC-20 tokens, which can be deposited, withdrawn, and traded on exchanges. The ERC-20 standard contains several pieces of information, including:

  • Details on the total supply of the token
  • How the token can be transferred
  • How the token can be withdrawn
  • Balance of the token in an owner’s account
  • How the token can be received

ERC-20 tokens can be traded promptly with a highly efficient confirmation rate, and the risk of contract-breaking on Ethereum is minimal.

Moreover, the global availability and adoption of ERC-20 means tokens following this standard enjoy higher liquidity and possibly higher returns.

BEP-20 Token Standard

The main token standard on BNB Chain, BEP-20 is the second most popular standard for cryptocurrencies. Created as an extension of ERC-20, BEP-20 inherits all the merits of the former. Many new tokens are now being developed on BNB Chain.

The advantage of the BEP-20 token lies not only in its efficiency but also in its compatibility with BEP-2 and ERC-20 as well as in its support of the crypto exchange Binance. The built-in functionality of the BEP-20 token allows it to swap for its BEP-2 counterpart, earning support from numerous wallets and providing decent cross-chain compatibility with other tokens.

Do not confuse BEP-20 with BEP-2 though: these are two independent standards of Binance. The former is the standard of Binance Smart Chain (BNB), while the latter is that of Binance Chain.

TRC20 Token Standard

Fully compatible with ERC-20, TRC‌20 is a technical standard used for smart contracts on the TRON blockchain, where users implement tokens with the TRON Virtual Machine (TVM). This standard defines rules that every token on the network must follow, covering the issuance of new tokens, execution and approval of transfers, and sending and receiving tokens.

All tokens on the TRC20 network are supported by specific digital wallets and can be traded, transferred, or shared as they all follow the same rules set by TRC20. A growing number of users now opt for the TRON network thanks to its lower transaction fees and faster transaction speed.

AVAX C-Chain Token Standard

The default smart contract blockchain on Avalanche, AVAX C-Chain supports the creation of any Ethereum-compatible smart contracts. KuCoin has now enabled the deposits and withdrawals for AVAX C-Chain. In addition, Avalanche also offers an AVAX X-Chain token standard.

Differences and Similarities Between ERC-20, TRC20 and BEP-20

The main difference between these three popular token standards is the underlying network: ERC-20 tokens are based on Ethereum, BEP-20 on BNB Chain, and TRC20 on TRON.

All three networks use the same smart contract programming language Solidity, which means they are mostly compatible and can be used interchangeably: tokens developed on one platform can be accessed on the other two. Moreover, the process of creating and deploying tokens is very similar on all three networks, except for fees and usasbility. It is nevertheless worth mentioning that all BEP-20 tokens are listed automatically on Binance and compatible with multiple other tokens such as BTC, ETH, and LTC.

Thanks to the growing global influence of Binance, BEP-20 ranks second in terms of popularity after ERC-20. However, a growing number of users now opt for the TRON network as the transaction of TRC20 tokens can be finalized within seconds with a minimal fee.

As tokens on these networks are not interoperable, please double-check that the addresses are correct when making deposits or withdrawals. Special attention should be paid to the formats of different addresses to avoid unnecessary losses.

Significance of Multi-Chain Deposits and Withdrawals for TUSD

TUSD has so far been deployed on 12 mainstream public chains such as Ethereum, Binance, and TRON, with deposits and withdrawals enabled on most of them. Moreover, it has been listed on over 100 trading platforms including Binance, Huobi, Poloniex, and OKX, and enabled multi-chain deposits and withdrawals on major exchanges. Such moves have not only enriched the use cases of TUSD and enhanced its intrinsic value: more importantly, more and more efficient, convenient trading channels are made available for TUSD holders with more advanced trading needs.

(The list is not exhaustive and will be updated.)

That’s all about it for Truly Class Lesson 14! Please comment if you’d like to know more. Truly values every comment.

Related link:

https://blog.sagipl.com/erc20-trc20-bep20-token/#:~:text=ERC-20%20vs.%20TRC-20%20vs.%20BEP-20%20The%20primary%20difference,TRC20%20tokens%20are%20based%20on%20the%20TRON%20blockchain.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
TrueUSD

TrueUSD

TUSD is the world’s most trusted stablecoin, fully backed by USD and independently attested live and on-chain, now moving billions of dollars around the world.