TRON TRC-20 Token

Just as Ethereum has its own ERC-20 token standard, so do many other blockchains. At TRON, tokens are programmed according to the TRC-20 token standard. As a public blockchain, anyone can issue their TRC-20 tokens using the same basic rules, which can interact with other apps running on the Tron platform.

In this guide, we will look at the similarities and differences between Tron and Ethereum and establish the role that TRC-20 tokens can play in the broader blockchain ecosystem. We will also examine the rules of the TRC-20 token standard and apps that issue tokens using Tron, including USDT, the largest stablecoin.

Tron vs. Ethereum

While there are many similarities between Ethereum and Tron, there are also some decisive differences. Like Ethereum, Tron uses a virtual machine called the Tron Virtual Machine (TVM) as a type of operating system for smart contracts running on the platform. TVM and Ethereum both use this same Solidity programming language. Therefore, tokens and smart contracts issued by Tron are fully compatible with Ethereum. This compatibility is by design, as the Tron Foundation is intended to make it easy for developers to port existing apps and tokens to the Tron ecosystem.

TRC20 token standard rules

Like the ERC-20 token standard, TRC-20 token development must comply with a set of rules that include mandatory and optional elements.

There are 3 optional provisions and 6 mandatory provisions.

Option rules

 The token name is the full notation name of the token (for example, Tether).

 A token ticker is an abbreviation used for a token (eg USDT).

 Token precision is the smallest separable unit of a token, up to 1/18.

Mandatory provisions

o Total supply refers to the maximum number of tokens that can be issued on the Tron platform.

o Balance Of returns the token balance of the user's Tron account.

o Transfer allows the transfer of tokens from the smart contract to the user's account.

o Approve allows other third parties, such as smart contracts, to transfer tokens.

o Transfer From allows another third party, such as a smart contract, to take a token from a user account and transfer it to another location.

o Allowance queries the remaining number of tokens that can be transferred by a third party.

Similar to Ethereum, developers can program other rules if they want the TRC-20 token to perform a specific task. However, the above codeline is the minimum requirement for smart contracts to be TRC-20 compliant.

Apps and projects using TRC-20 Token Standard

Tether is probably the largest and most famous project that uses the TRC-20 token standard. In early 2021, Ethereum-USDT trading volume was Ethereum, reflecting the fact that Tron-USDT was more popular than Ethereum-USDT and the high trading fees of Ethereum are a barrier for many users.

Moreover, when discussing Tron-USDT and Ethereum-USDT, the decentralization argument becomes almost meaningless. Because the idea of ​​decentralization is based on the concept of reliability. USDT users must trust Tether, the company that issues USDT, regardless of whether the transaction is on Ethereum or Tron. Therefore, it makes sense to take advantage of Tron's low fees and fast confirmation times when trading on USDT.

Revain is another project that uses TRC-20 token development as part of its review platform. Revain operates as a blockchain version of TrustPilot. Those who leave reviews can be rewarded for the quality of their posts, motivating people to write informative and honest reports about their experience.

JUST is a variation of Maker DAI stablecoin based on Tron. Users can bet TRX tokens on collateralized debt positions to generate stable coins called USDJs that are fixed at the value of the US dollar.

Conclusion

TRC-20 coins have the same functionality as ERC-20 tokens. However, while Ethereum is frequently crowded, resulting in high fees and poor user experience, Tron-based tokens offer a convenient workaround for many users, especially Stablecoin. It is gaining popularity with users who trade with Stablecoin.