A token standard is a set of rules that govern a collection of tokens under that standard. Since Blockchain development peaked, starting from Ethereum, BSC, and Tron ecosystems, several token standards have been released to represent different types of tokens; each token standard is controlled by smart contracts – a set of self-executing rules. The set of rules that can be enforced on each token standard varies; that’s why fungible tokens are treated separately from non-fungible tokens (NFTs), which are also treated differently from security tokens.

In this article, we’ll compare token standards on the Ethereum network with other standards on the Tron network.

What are Ethereum Token (ERC) Standards?

Ethereum Request for Comments (ERC) is a document containing rules that Ethereum-based tokens must comply with. As smart contracts, these sets of rules are usually automated after meeting certain conditions.

Before an ERC standard is created, the Ethereum community usually votes on the “Ethereum Improvement Proposal (EIP),” where several documents and suggestions are reviewed and revised. Then, in a consensus, the community accepts some of the proposals, rejects some, and finalizes the EIP before processing for implementation. Finally, at the stage where it is allowed to be implemented by the general public, it becomes an “ERC.”

There are several Ethereum standards, some of which are listed below:

ERC-20: The fungible token standard

ERC-20 is the most common token standard on the Ethereum network representing fungible tokens (tokens with the same value at any given time). For example, 100,000 units of $SHIB, an ERC-20 token in your wallet, equals 100,000 units of $SHIB in my wallet. Read more about fungibility here.

ERC-721: Non-fungible Token (NFT) Standard

Non-fungible tokens (NFTs) are the opposite of fungible tokens. Every single token command a different price; hence, they cannot be tokenized equally. That’s why 1 CryptoPunks NFT in my wallet that looks like the one in your wallet is different, with unique traits and rarity statistics. The ERC-721 standard is used to represent non-fungible tokens on the Ethereum Network.

ERC-1155: Multi-Tokens Standard

Typically, ERC-20 and ERC-721 tokens cannot be transacted in a single, smart contract. For example, if you want to send some $SHIB tokens and some CryptoPunks tokens, you will have to complete two different transactions. However, with time, the Ethereum community developed the ERC-1155 token standard, which facilitates the efficient transfer of fungible and non-fungible tokens in a single transaction. As a result, it is often referred to as the flexible token standard.

Several other token standards exist on the Ethereum network, which include the following:

ERC-223: Protecting Users From Accidental Contract Transfers

ERC-667: “Transfer and Call” Token Standard

ERC-777: Operator Based Token Standard

ERC-864: NFTs Shared Ownership

ERC-1190: Non-Fungible Royalty Token Standard

ERC-1400: Security Token standard

And many more.

What are Tron Token (TRC) Standards?

Like Ethereum, TRC stands for Tron Request for Comments. It is the Tron equivalent of rules that tokens on the Tron network must comply with. Common token standards in the Tron network include TRC-10, TRC-20, and TRC-721.

TRC-10: Technical token standard

TRC-10 is a token standard used for token production on the Tron ecosystem, and unlike TRC-20, it doesn’t require the Tron Virtual Machine (TVM) to function.

TRC-20: The Fungible Token Standard

The TRC-20 token standard represents a set of rules for issuing fungible tokens created and managed on the Tron blockchain.

TRC-721: The Non-fungible Token (NFT) Standard

The TRC-721 standard is used to represent a set of rules for the issuance of non-fungible tokens on the Tron Blockchain. TRC-721 token standard is fully compatible with ERC-721.

Comparison between The ERC token standard and the TRC token standard

There are many differences in both blockchains’ development, and it’s no secret that Ethereum developers are far more sophisticated than most blockchains. As a result, Ethereum has developed many token standards for several purposes, while Tron only has a few. Hence, this comparison will be streamlined to the major token standards (ERC-20 and TRC-20)

ERC-20 vs TRC-20

From the information in the above table, it is evident that the TRC-20 token standard is created as a scalable alternative to the ERC-20 standard. Since both networks’ virtual machines – the Ethereum Virtual Machine (EVM) and the Tron Virtual Machine (TVM) are both programmed in solidity, their smart contracts are interoperable; hence, Ethereum tokens can be used on Tron’s network and vice-versa.

However, Tron’s blockchain network was created with scalability in mind; while ERC-20 transactions may take minutes to get finalized, TRC-20 transactions are typically finalized in seconds, with way cheaper fees than ERC-20.

Away from ERC-20 and TRC-20, if we consider the bigger picture, ERC is more sophisticated than TRC, with many token standards to facilitate a pleasant experience for users on the Ethereum network.

Final Takeaway

Ethereum is the mother of all smart contract blockchains; hence, it has a wealth of token standards due to its large developer community. Other competing blockchain networks (ETH Killers) usually beat Ethereum for scalability; however, Ethereum stands strong in security and mass adoption. It is expected that Ethereum's migration to ETH2.0 will help it become one of the most scalable Layer-1 blockchains; hence, killing the "ETH-killers." The migration is expected to become complete in 2023.

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