Introduction
In the fast-growing world of cryptocurrency and blockchain technology, crypto tokens are at the heart of most digital transactions and decentralized applications (dApps). These tokens aren’t created randomly—they follow specific token standards that define how they behave, interact, and function within a blockchain ecosystem.
If you’re new to the world of crypto or just want to understand how tokens like ERC20, BEP20, TRC20, SPL, ERC-721, and others work, this guide is for you. Let’s explore what crypto token standards are, why they matter, and how they differ across blockchains like Ethereum (ETH), BNB Smart Chain (BSC), Tron (TRX), Solana (SOL), and Bitcoin (BTC).
What Are Crypto Token Standards?
Crypto token standards are sets of rules and guidelines that developers must follow to create tokens that can operate within a specific blockchain network. These standards ensure:
Interoperability: Tokens can easily interact with wallets, dApps, and other services within the blockchain ecosystem.
Consistency: All tokens built on the same standard share common functions and features.
Security: Well-established standards reduce vulnerabilities and bugs.
In short, token standards act as “blueprints” that define how tokens are created, transferred, and managed.
Why Do We Need Token Standards?
Imagine trying to send an email without a standardized format—no subject lines, no consistent addressing system. It would be chaotic!
Similarly, without token standards, blockchain-based tokens would be difficult to manage and integrate. Standards ensure:
- Easier integration with wallets and exchanges.
- Predictable behavior for developers and users.
- Lower risk of technical errors or security flaws.
Popular Token Standards by Blockchain
Let’s dive into the most widely used token standards across different blockchains.
Ethereum (ETH) Token Standards
Ethereum pioneered the idea of programmable smart contracts, and its token standards have set the benchmark for the crypto industry.
1. ERC20
The ERC20 standard is the most popular and widely adopted Ethereum token standard. It defines basic functionalities for fungible tokens (tokens that are identical and interchangeable).
Key features:
- Transfer tokens between accounts.
- Get account balances.
- Approve third parties to spend tokens on behalf of the owner.
Use cases:
- Stablecoins (e.g., USDT, USDC)
- Utility tokens
- Governance tokens
2. ERC-721
The ERC-721 standard introduced non-fungible tokens (NFTs). Unlike ERC20, each ERC-721 token is unique and can represent digital art, collectibles, or in-game items.
Key features:
- Unique token ID for each asset.
- Metadata to describe each token’s characteristics.
Use cases:
- NFT marketplaces (e.g., OpenSea, Rarible)
- Digital art ownership
- Gaming assets
3. ERC-1155
The ERC-1155 standard combines the best of both worlds—fungible and non-fungible tokens—into a single smart contract.
Key features:
- Efficient batch transfers.
- Lower gas fees for handling multiple token types.
Use cases:
- Gaming ecosystems
- Multi-asset NFTs
- Digital collectibles
4. ERC-777
ERC-777 enhances the ERC20 standard with improved token handling and advanced features like hooks for contracts.
Key features:
- More flexibility for token interactions.
- Backward compatibility with ERC20.
Use cases:
- DeFi applications
- Advanced token utilities
5. ERC-1400
ERC-1400 is tailored for security tokens, combining features from ERC20 and ERC777 with compliance mechanisms.
Key features:
- On-chain and off-chain compliance.
- Enhanced control for regulated token offerings.
Use cases:
- Security token offerings (STOs)
- Compliant asset tokenization
6. ERC-4626
ERC-4626 is a standard for tokenized vaults in DeFi (Decentralized Finance).
Key features:
- Simplified and consistent interface for yield-bearing vaults.
- Compatibility with DeFi protocols.
Use cases:
- Lending protocols
- Yield farming vaults
7. ERC-6551
ERC-6551 introduces the concept of NFT accounts—each NFT can have its own smart contract account.
Key features:
- NFTs that can own other assets.
- Dynamic and programmable NFTs.
Use cases:
- Composable NFTs
- Gaming avatars with inventories
8. ERC-998
ERC-998 focuses on composable NFTs, allowing NFTs to own other NFTs or ERC20 tokens.
Key features:
- Hierarchical ownership.
- Complex asset structures.
Use cases:
- Gaming ecosystems
- Nested digital assets
BNB Smart Chain (BSC) Token Standards
BNB Smart Chain (BSC) is an Ethereum Virtual Machine (EVM)-compatible blockchain, making it easy to adopt Ethereum’s token standards.
BEP20
The BEP20 standard is BSC’s equivalent of ERC20.
Key features:
- Fungible token standard.
- Compatible with the Binance ecosystem.
Use cases:
- DeFi tokens on BSC (e.g., CAKE, BAKE)
- BNB-powered dApps
Tron (TRX) Token Standards
Tron is a high-performance blockchain optimized for fast transactions and low fees.
1. TRC20
TRC20 is Tron’s version of ERC20.
Key features:
- Fungible tokens on the Tron network.
- Fast and cheap transactions.
Use cases:
- TRON-based stablecoins (e.g., USDT-TRC20)
- Tron DeFi projects
2. TRC10
While not as popular as TRC20, TRC10 is another token standard on Tron with simpler token creation and lower resource requirements.
Solana (SOL) Token Standards
Solana is known for its high-speed, low-cost blockchain infrastructure.
SPL
The SPL (Solana Program Library) token standard defines fungible tokens on Solana.
Key features:
- Fast and efficient transactions.
- Compatibility with Solana’s unique architecture.
Use cases:
- Solana DeFi applications
- Solana-based NFT projects
Bitcoin (BTC) Token Standards
Bitcoin was designed as peer-to-peer electronic cash and doesn’t natively support token standards like Ethereum or Solana. However, solutions like Ordinals and Layer 2 networks (e.g., RSK) have emerged to create token-like assets on Bitcoin.
Ordinals
Ordinals protocol allows for “inscriptions” on individual satoshis, enabling Bitcoin-based NFTs. While not a standard in the same sense as ERC20, it extends Bitcoin’s functionality for digital collectibles.
Key Differences Between Token Standards
Here’s a comparison table of the major crypto token standards across blockchains. It highlights their blockchain, standard name, type (fungible, non-fungible, etc.), key features, and example use cases:
| Blockchain | Standard | Token Type | Key Features | Example Use Cases |
|---|---|---|---|---|
| Ethereum (ETH) | ERC20 | Fungible | Basic functions for transferring and managing tokens | Stablecoins (USDT, USDC), DeFi tokens |
| ERC-721 | Non-fungible (NFTs) | Unique IDs and metadata for each token | Digital art, gaming NFTs | |
| ERC-1155 | Fungible & Non-fungible (hybrid) | Batch transfers, supports multiple token types in a single contract | Gaming ecosystems, collectibles | |
| ERC-777 | Fungible | Advanced token interactions, backward-compatible with ERC20 | DeFi applications | |
| ERC-1400 | Security tokens (fungible) | Compliance features for regulated tokens | STOs, asset tokenization | |
| ERC-4626 | Fungible vault tokens | Standard for tokenized DeFi yield vaults | Yield farming, DeFi vaults | |
| ERC-6551 | NFT accounts | NFTs with their own smart contract accounts | Dynamic NFTs, NFT-based accounts | |
| ERC-998 | Composable NFTs | NFTs that can own other NFTs or ERC20 tokens | Nested digital assets, gaming assets | |
| BNB Smart Chain (BSC) | BEP20 | Fungible | ERC20-equivalent for BSC, compatible with Binance ecosystem | DeFi tokens (CAKE, BUSD) |
| Tron (TRX) | TRC20 | Fungible | ERC20-like, optimized for fast and cheap transactions | Stablecoins (USDT-TRC20) |
| TRC10 | Fungible (simpler standard) | Basic token creation with low resource requirements | Community tokens | |
| Solana (SOL) | SPL | Fungible | Fast, low-cost tokens built on Solana’s program library | Solana DeFi tokens, Solana-based NFTs |
| Bitcoin (BTC) | Ordinals | Non-fungible (NFT-like inscriptions) | Inscriptions on individual satoshis for digital collectibles | Bitcoin-based NFTs |
Examples of Popular Tokens Using These Standards
To make things even clearer, here are some real-world examples:
- ERC20: USDC, USDT, UNI (Uniswap)
- BEP20: CAKE (PancakeSwap), BUSD
- TRC20: USDT-TRC20
- SPL: USDC on Solana, Serum (SRM)
- ERC-721: Bored Ape Yacht Club NFTs
- ERC-1155: Enjin (ENJ) gaming assets
Future of Token Standards
As the blockchain ecosystem evolves, token standards will continue to improve to meet new needs and challenges:
- Cross-Chain Interoperability: New standards will support seamless token transfers across different blockchains.
- Enhanced Security: More robust frameworks will address security risks and vulnerabilities.
- Scalability: Token standards will evolve to handle higher transaction volumes and more complex use cases.
- Programmable Assets: Future standards will enable more sophisticated functionalities, such as automated yield farming or dynamic NFTs.
Conclusion: The Future of Crypto Token Standards
As blockchain technology evolves, crypto token standards continue to expand and innovate. Whether you’re an investor, developer, or simply a crypto enthusiast, understanding these standards is key to navigating the world of decentralized finance (DeFi), NFTs, and the broader Web3 ecosystem.
From ERC20 on Ethereum to SPL on Solana and TRC20 on Tron, each standard serves a vital role in building the future of blockchain-based applications.
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Frequently Asked Questions about Crypto Token Standards
Here are some commonly asked questions about crypto token standards:
What is a crypto token standard?
A crypto token standard is a set of technical rules and functions that define how a token should work on a blockchain. It ensures that tokens can be easily recognized, transferred, and managed across different platforms like wallets and exchanges.
What is the ERC20 token standard?
ERC20 is the most popular token standard on the Ethereum blockchain. It defines basic functions like how to send tokens, check balances, and approve transactions. Many popular tokens, like USDC and LINK, are built on ERC20.
How is BEP20 different from ERC20?
BEP20 is very similar to ERC20 but is designed for the Binance Smart Chain (BSC). BEP20 tokens are faster and cheaper to use because BSC has lower transaction fees compared to Ethereum.
What is the TRC20 token standard?
TRC20 is the token standard used on the TRON blockchain. It is almost the same as ERC20 in how it works, but it runs on TRON’s faster and cheaper network. TRC20 is often used for stablecoins like USDT on TRON.
What is the HRC20 token standard?
HRC20 is the token standard for the Harmony blockchain. Like ERC20, it defines how tokens work, but it’s optimized for Harmony’s fast and low-cost network. HRC20 tokens can also be moved to other networks easily because Harmony supports cross-chain bridges.
Can I send an ERC20 token to a BEP20 address?
No, not directly! Even though addresses can look the same, ERC20 and BEP20 tokens work on different blockchains. Sending tokens to the wrong network can result in lost funds. Always use a bridge or swap service to move tokens between networks safely.
Are these token standards secure?
Yes, they’re widely used and tested, which makes them secure for developers and users. But it’s always important to be careful and use trusted wallets and platforms to reduce the risk of losing tokens.
Are TRC-20 tokens better than ERC-20 tokens?
TRC-20 tokens run on the Tron network, which offers faster transactions and lower fees compared to Ethereum’s ERC-20 tokens. However, Ethereum has a larger ecosystem, making ERC-20 tokens more widely adopted.
What token standard does Solana use?
Solana uses SPL tokens, which serve as its primary fungible and non-fungible token standard. These tokens facilitate high-speed and low-cost transactions across decentralized applications.
Does Bitcoin have token standards like Ethereum or BSC?
Bitcoin primarily functions as a digital currency, but experimental token standards like BRC-20 and Ordinal NFTs enable token creation on the Bitcoin blockchain.
How do token standards affect DeFi applications?
Token standards ensure liquidity, interoperability, and security within decentralized finance (DeFi) platforms. They help facilitate smart contracts, staking mechanisms, and seamless asset transfers.