The TRC20 token is a standard token based on the implementation of smart contracts when using the TRON network to perform crypto transactions.
The TRC20 token is the second generation of tokens launched by TRON after previously launching the TRC10 token. Compared to the previous version, TRC20 tokens are made more efficient for users and equipped with better capacity.
Actually, there is not much difference between the two versions of the TRC token. One of the most basic differences between the TRC10 token and the TRC20 token is the criteria for large-scale implementation and the way it is operated. The differences between TRC10 tokens and TRC20 tokens are outlined in the following list:
- The TRC10 token can be accessed via the Application Program Interface (API) while the TRC20 token is not.
- TRC10 tokens have much lower transaction costs than tokens. However, from a smart contract implementation perspective, TRC20 is a wiser option.
- The TRC20 token is a token that has a greater bandwidth for sharing information and making trades or transactions.
- The TRC10 token provides a larger transaction base because it is protected by the Applications Program Interface (API), but the TRC20 token provides a larger selection of available basic features.
- When it comes to TRON frozen deposits, it is better to store them in the TRC20 token wallet (TRC20 token wallet) rather than TRC10.
In addition to some of the advantages above, some of the features that complement the TRC20 token are:
- Token Swap (TRC20 Swap)
- Unlimited data transfer
- Ease of tracking in public ledger
- Supported by many computer operating systems
- Public ledger management and storage
- High security and encrypted
- P2P decentralized network
- Supports high rate transactions per second
- High scalability
- Redistribution reward mechanism
- Supports various crypto wallets ( TRX, USDT, etc.)
- Interface appearance can be modified
- Effective token structure
- Popular storage systems
- TRON wallet and integration mechanism
- Facility to explore blockchain
Difference Between USDT TRC20 and ERC20
TRON’s goal of launching the TRC20 token is to be a competitor to the ERC20 token built on the Ethereum blockchain base. The TRC20 script from TRON is made to be compatible with the scripts contained in the ERC20.
The script compatibility of the two tokens allows any developer or user who previously used ERC20 to switch to using TRC20 without having to recode the script (with the TRC20 scan feature).
When compared to ERC20 tokens, the two main advantages that TRC20 tokens offer are:
1. Transaction Speed
The TRON network claims to be able to handle up to 2000 transactions per second. This clearly outperforms the Ethereum network, which is only around 25 transactions per second.
2. Transaction Fee
Generally, users will be charged when making transactions or making crypto exchanges. The amount of transaction fees becomes very important and can affect how much the value of the crypto holdings being transacted will decrease.
The TRON transaction fees charged to users are much less than the fees charged on the Ethereum network. According to the Coinvestasi.com page, Ethereum transaction fees reach $30 or IDR 431.1 rupiah while TRON transaction fees only reach $2 or IDR 28.7 rupiah.
How to Create TRC20 Token
Some of the step-by-step guides for creating TRC20 tokens are as follows:
- First, create a smart contract address (smart contract) to create a token. If you are already using the TRC10 token, then there is no need to create a smart contract.
- Connect your digital wallet with the Tronscan platform and make sure it appears in the upper right corner. Make sure you generate tokens using the blockchain from TRON.
- Click “Blockchain” and navigate to where you can find the token tracker menu. In this section the create token menu will appear and you can start creating tokens
- You should add further details regarding the token requirements, such as: supply, demand, token value, token freeze and release time, all information regarding smart contract addresses, etc.
- If these steps were done correctly, your TRC20 token is ready. The TRC20 token is a token that does not require a fee for the creation process as long as the token has a smart contract address. (Note: the creation of TRC10 tokens is subject to a fee).
Based on the results of the description above, the TRC20 token is one type of token that you need to know more about as a reference in starting crypto investments.
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