TRC-20 tokens offer all the same benefits as ERC-20 tokens. However, Tron-based tokens offer a convenient workaround.
TRC-20 tokens provide exactly the same benefits as ERC-20 tokens. However, unlike Ethereum, where Ethereum often gets crowded and customers have to bear high fees and terrible experiences, Tron-based tokens offer a much more convenient second solution.
Tether is probably the largest and most recognizable project using the TRC-20 token standard.
Just as Ethereum has its own technical ERC-20 token standard, many blockchains have their own standard token. For Tron, tokens are programmed according to the TRC-20 token standard. As a public blockchain, anyone can issue TRC-20 tokens under the same basic rules, and these tokens can interact with other apps running on the Tron platform.
In this academy, we want to examine the similarities and differences between Tron and Ethereum, and explore the role the TRC-20 token can play in the broader blockchain ecosystem. We will also check the TRC-20 token standard provisions and some apps. This also includes the stable USDT, which uses Tron to issue its own tokens.
Tron VS Ethereum
There are several commonalities and key differences between Ethereum and Tron. Like Ethereum, Tron uses a virtual machine known as the Tron Virtual Machine (TVM) as the operating system for smart contracts running on the platform. TVM uses a Solidity programming language like Ethereum. Therefore, the tokens and smart contracts issued by Tron are fully compatible with Ethereum. This compatibility was intended from the time of design, as the Tron Foundation wanted to make it easy for developers to incorporate existing apps and tokens into the Tron ecosystem.
Of course, one might think, what good is Tron and Ethereum so similar? If that’s the case, wouldn’t it be better to just stay on Ethereum? This is where the key difference between Tron and Ethereum comes in. Ethereum uses a proof-of-work consensus model, which is known to be rather slow. As Ethereum traffic increases, transaction fees continue to rise according to the principle of supply and demand. In early February, the average Ethereum fee broke $20 for the first time, making it too expensive for low-value transactions to be available.
Tron’s Delegated Proof of Stake (DPoS) Consensus
In contrast, Tron uses Delegated Proof of Stake (DPoS) consensus. Since there are only 27 validators to verify a transaction, the network can process much higher volumes with very low fees. Therefore, developers prefer Tron. Because its superior scalability and low fees are much better for high-volume apps like games.
However, there is one more thing to consider regarding Tron’s low fees. The more lines in your app’s smart contract code, the more complex the execution and the greater the computational power it uses. Therefore, Ethereum developers must keep in mind that introducing unnecessary complexity into the code will result in higher transaction fees.
Because TRON fees are very low, developers can freely program more sophisticated smart contracts without worrying about the high cost and poor app usage.
The DPoS consensus model has also been criticized for being too centralized. This is because the number of validators is relatively small compared to a large number of proof-of-work miners. However, the “triple dilemma” of blockchain, scalability, security, and decentralization have been the biggest challenges since day one. Therefore, developers and users must always consider which of these three to prioritize when deciding which platform to use.
TRC20 Token Standard Provisions
Like the ERC-20 token standard, the TRC-20 token adheres to a set of rules, which include both mandatory and optional elements.
It consists of three optional rules and six mandatory rules.
The three optional rules are:
- The token name indicates the full name of the token (eg, tether).
- A token ticker represents an abbreviation used for a token (eg, USDT).
- Token accuracy can be up to 1/18th with the smallest division of tokens.
The six mandatory rules are:
- The total supply refers to the maximum amount of tokens that can be generated on the TRON platform.
- Will balance refers to restoring the token balance to the user’s Tron account.
- Through transfer, tokens are transferred from the smart contract to the user account.
- Transfer gives permission to transfer tokens by third parties such as other smart contracts.
- It allows third parties such as other smart contracts to transfer tokens from a user account to another via Transfer From.
- Allowance asks how many remaining tokens a third party can transfer.
Like Ethereum, developers can program the TRC-20 with the different regulations they need whenever they want it to perform a specific task. However, the above line of code is only the minimum requirement of the TRC-20 compliance regulations that smart contracts must comply with.
Apps and projects utilizing the TRC-20 token standard
Tether is probably the largest and most recognizable project using the TRC-20 token standard. Tron-USDT is now more popular than Ethereum-USDT. Surpassed Ethereum in early 2021, demonstrating that Ethereum’s high fees have become an obstacle for many users.
Furthermore, the decentralization debate has little to do with the Tron-USDT vs Ethereum-USDT debate. After all, this is because decentralization is fundamentally based on the concept of trustlessness. USDT users must trust Tether, the company that issues USDT, whether they trade on Ethereum or Tron. Therefore, it is very logical to take full advantage of TRON’s low fees and fast confirmation times when trading USDT.
Revain is one of those projects that utilizes the TRC-20 token as part of its review platform. Lebain runs as a TrustPilot version based on blockchain. People who leave reviews are rewarded based on the quality of their contributions, and those who write useful and honest reports based on their experience are more advantageous.
JUST is one of the Tron-based Maker Dai (DAI) stablecoins. Users can stake their TRX tokens in Collateralized Debt Position (CDP) to create a stablecoin called USDJ that is pegged to USD.
Tron also has a dynamic gaming ecosystem, which includes MegaCryptopolis 3D, Blockchain Cutie, and more.
TRC-20 tokens provide exactly the same benefits as ERC-20 tokens. However, unlike Ethereum, where Ethereum is often crowded and customers have to bear high fees and terrible experiences, Tron-based tokens offer a much more convenient second solution. This has been particularly popular with many users who trade with stablecoins. PEMEX is excited to announce support for TRC-20 USDT, which provides fast confirmations with no fees. Stablecoin users can now experience greater flexibility.