What is TRC-20?
The TRC-20 token is a token standard used on the TRON blockchain and is fully compatible with the ERC-20 standard on the Ethereum blockchain because they share the same structure. This compatibility enables TRC-20 tokens to be converted to the Ethereum blockchain for use as an ERC-20 token and vice versa.
A Brief Overview of TRON Blockchain
TRON is a blockchain that uses the DPoS consensus algorithm. It was founded in 2017 by the Tron Foundation, a non-profit organization based in Singapore. The founder of TRON is Justin Sun.
TRON aims to develop a global free content entertainment system that uses blockchain to cater to entertainment content enthusiasts worldwide.
TRX is TRON’s governance token, and it has a total supply of 100 billion tokens. It serves as a medium of payment, rewards, and transaction fees. Additionally, TRON supports various token standards, such as TRC-10 and TRC-20.
Rules of TRC-20 Tokens
There are 6 mandatory and optional rules that apply to all TRC-20 tokens:
6 mandatory rules:
1. Supply: Specifies the total number of tokens that will be created and circulated.
2. BalanceOf: Returns the token balance held by a particular address.
3. Transfer: Enables token transfer from one address to another.
4. TransferFrom: Allows a third party to transfer tokens from one address to another.
5. Approve: Grants permission for an address to spend a specific amount of tokens from another account.
6. Allowance: Indicates the number of tokens approved for transfer from one address to another.
3 optional rules:
1. Name: Specifies the name of the token.
2. Symbol: Represents the token symbol (such as BTC, ETH, etc.).
3. Decimal: Determines the number of decimal places used to represent the smallest unit of the token.
Compare TRC-20 and TRC-10
TRC-20 and TRC-10 are two token standards of TRON and are similar to Ethereum’s ERC-20, ERC-721, and ERC-1155 standards. However, there are certain differences between them.
Both TRC-20 and TRC-10 use a similar cryptographic structure for transaction encryption and token storage. However, TRC-20 is interoperable with other token standards on various blockchain platforms, while TRC-10 can only be used on the TRON blockchain. Moreover, TRC-20 enables token swapping, whereas TRC-10 does not. The maximum number of tokens that can be issued also differs between the two standards. TRC-20 allows a maximum of 100 billion tokens to be issued, while TRC-10 permits a maximum of only 1 billion tokens to be issued.
Some Projects Use TRC-20 Token Standard
1. BitTorrent (BTT):
BitTorrent is among the most widely used file-sharing applications globally, and BTT is its token. It is used to obtain additional bandwidth and faster download speeds on the BitTorrent platform.
2. WINkLink (WIN):
WINkLink is an internet-based entertainment platform that employs TRON’s blockchain technology and a token called WIN. This token is utilized to place bets on games available on the WINkLink platform.
3. JustLend (JST):
JustLend is a lending protocol on the TRON blockchain that employs JST tokens. JUST offers DeFi products such as borrowing and lending at lower interest rates than traditional financial products.
4. Tether (USDT):
Tether is a popular stablecoin developed on multiple blockchain platforms, including the TRON blockchain. Tether utilizes the TRC-20 token standard and is pegged to the USD at a 1:1 ratio, thereby minimizing price risk.
Summary
We have provided an explanation of the TRC-20 standard on the TRON blockchain platform along with its provisions. Hopefully, this article will help you gain more knowledge about the TRC-20 token standard and aid you in your investment process. Good luck!