Ethereum, Binance, and Tron are the three most popular Blockchain that are widely used for token development. These Blockchains adopt ERC-20, BEP-20, and TRC-20 token standards. Before hiring a token development company to launch your token it is vital to know the details of ERC20, BEP20, and TRC20 along with the differences that would help you in making an informed decision.
What is a Token Standard?
A token standard is a set of rules & all the tokens are governed by it. In other words, It is a token standard that indicates how new tokens will be developed, issued, and deployed on a particular Blockchain. For instance, ERC20 is an Ethereum token development standard that gives developers the opportunity to create tokens on the Ethereum network. All the ERC20 tokens possess similar properties and will be handled by the same set of rules. Apart from the ERC20 token standard, BEP-2, BEP-20, and TRC-20 are names of some of the prominent token standards.
Every Blockchain can have its own token standard.ERC-10, ERC-20, and ERC-721 are the token standards of Ethereum. The token standards for advanced tokens have been listed as follows:
1. ERC-20 (Ethereum)
2. TRC-20 (TRON blockchain)
3. BEP-20 (Binance Smart Chain)
What is ERC20?
ERC20 is the most extensively used and most prominent token standard of all time. It has become one of the most reputable token standards of all time.ERC in ERC20 token stands for Ethereum Request for Comment and is widely followed by tokens produced and operating on the Ethereum platform. These tokens can be purchased, sold, and exchanged and are developed using Ethereum Smart Contracts.
The TRC-20 Creation process is very simple. However, if you don’t possess any prior experience or knowledge, get assistance from ERC-20 token development holding sound technical knowledge and expertise in token creation and deployment. The experts will resolve bugs and will update them from time to time.
What is the BEP20 Token?
BEP20 is the second most common and extensively used token standard for crypto production. These tokens operate on the Binance Smart Chain network because they are speedier, very efficient, and possess excellent cross-platform compatibility.BEP20 was an extension of ERC20 and had similar features. It is the main token standard of Binance Smart Chain which means that tokens developed on it will be deployed on BSC.
BEP20 and BEP2 create confusion among most individuals. These two are very different specifications, as BEP-20 is the Binance Smart Chain token standard while BEP-2 is linked with Binance Chain.
Both BSC and Ethereum are compatible with each other. Thus, they speed up the transaction fees while keeping the gas fees low. This means that you can transfer ERC20 tokens very quickly and at cheap rates. You can use it to transfer Bitcoin, Ether, Litecoin, and USDT tokens.
The process of creating a BEP-20 token is very simple. Those who don’t have sound technical knowledge can still develop tokens. However, if you are planning to develop it from scratch, getting assistance from BEP20 token development experts would be a suitable course of action.
To learn more about BEP20 token click here.
What is the TRC20 Token Standard?
TRC20 token standard can be used to develop and manage tokens on the TRON network. This standard signifies regulations that all tokens must abide by. The process starts with token issuing, performing, and approving token transfers to send and retrieve the tokens. These tokens can be transferred via the USTD TRC20 wallet and swapping, transferring and sharing take place as long as TRC20 contract requirements are fulfilled. Also, TRC20 tokens must be compliant with the Token Name, Token Abbreviation, and Token Precision standards.
TRON is more efficient than the Ethereum clone, levies cheaper transaction fees, and performs transactions in a speedier manner. Both TRON coins and Smart Contracts demonstrate interoperability on the Ethereum network. The Smart Contracts integrated during the process are developed in the Solidity programming language.
TRC-20 is basically the TRON blockchain standard that is used to develop new tokens. Since TRON is a public Blockchain so anyone can develop with the assistance of TRON token development experts and issue their tokens in accordance with the TRC-20 token standard, TRC-20 tokens can interact with one another and with other TRON tokens and applications.
Things to Consider Before Getting Into Crypto Token Development
If you are planning to develop a token for your cryptocurrency development project, make sure that you consider the following things:
- Token Compatibility
Make sure that the tokens you develop are token-standard compliant.
- Token Supply
While creating them, make sure that it has a predefined maximum supply.
- Token Issuance
How will new tokens be issued or created via minting or staking, or both?
- Token Burning
Are the tokens burned to minimize the supply and surge the demand? If yes, then how and to what extent is it done?
- Token Rights
The type of rights the owner or holder has. Whether it is governance or voting rights, or no rights at all.
- Token Listing
Once a token is developed, it must be listed on exchanges for trading.
4-Step Token Development Process
You can develop cryptocurrency tokens with advanced features with the assistance of a crypto token development company. Also, the experts have simplified the process by dividing it into four steps listed below:
#Step 1: Define Token Properties
First of all, make a decision on what your token is going to do. Are you developing a token solution to attract investors and will possess properties of the specific token standard? Also, ensure that the following specifications are provided:
- Total token supply.
- Token’s name, symbol, number of decimals, and a couple of auxiliary functions to check balances on addresses and enable and verify transactions.
#Step 2: Smart Contract Development
Every crypto token is operated by Smart Contracts, which is basically a piece of software operating on a Blockchain network. The token creation process begins with Smart Contract development. Ethereum was the first platform that introduced the concept of Smart Contracts. This is the main reason why most of the cryptocurrencies are developed and deployed on the Ethereum platform.
#Step 3: Run QA on a Test Chain
It’s difficult to replace a Smart Contract with bugs once it has been created. Therefore, Multiple tests must be performed on Test Blockchain.
#Step 4: Deploy the Token on Blockchain Network
The process of Smart Contract deployment is very simple. Based on the tools used by the token development experts, share a transaction with compiled contract code without giving the details about the receiver. Make sure that the Smart Contract performs flawlessly on Testnet before deploying it on the Mainnet.
Develop Next-Gen Tokens with Leading Crypto Token Development Firm
Whether you are a start-up or an established business planning to venture into the token development segment, launch your own token with the leading token development company Omatech. Our Blockchain experts possess wide domain knowledge and experience that they integrate to develop robust and scalable token solutions for businesses. We also assist you in ICO launch to help you reach your business goals.
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