What are TRC10 and TRC20 Tokens?
What are TRC10 and TRC20 Tokens?
Tron (TRX) is a blockchain platform for decentralized applications (Dapps).
Similar to other blockchain platforms like Ethereum, Tron allows users to create or issue tokens on its blockchain. These tokens can be used as a Dapp’s currency or for whatever purpose token issuers can think of.
However, instead of ERC20, a popular type of Ethereum token, Tron has what are known as TRC10 and TRC20 tokens.
TRC10 tokens have been available since the mainnet launch of Tron, when it moved from Ethereum to its own blockchain.
Most of the Tron-based tokens you see are TRC10 tokens. This is because they are extremely easy to create!
Even if you have no programming knowledge, you can create a TRC10 token in a few simple steps:
- Acquire 1024 TRX
- Go to Tronscan.org (a Tron blockchain explorer, where you can see Tron transactions and more)
- Create a wallet (go to the upper right part of the screen and click Sign In > Import a Wallet > Create Wallet)
- Send 1024 TRX to your Tronscan wallet
- Go to Tronscan’s page for creating TRC10 tokens and fill out the required items (Token Name, Token Abbreviation, Total Supply, Brief Introduction, Official Website, Issuing Exchange Rate in TRX e.g. 1 TRC10 token = 1 TRX)
The easiness of issuing a TRC10 token makes TRC10 a great way for teams to gauge interest in their project without spending a lot of money on development.
However, that doesn’t mean TRC10 can’t be used in real world situations.
TRC10 is already used in high profile projects like BitTorrent Token (BTT), which enables faster downloads on BitTorrent, the largest decentralized file sharing protocol with over 100 million users.
TRC20 gives Tron-based tokens more functionality, as TRC20 tokens are used in smart contracts. For example, a Tron-based project might automatically issue more of its TRC20 tokens to early purchasers by programming such an early purchase bonus into the token’s smart contract.
However, with this added functionality and possibility for customization comes more complexity. Therefore, TRC10 tokens are more widespread (for now).
Also, the TRC20 token standard is fully compatible with Ethereum’s ERC20 token standard. This means that TRC20 tokens can be used in Ethereum-based smart contracts, allowing developers to transfer their Ethereum-based smart contracts to Tron if they choose.
TRC10 vs. TRC20
Aside from easy token creation (TRC10) and native smart contract functionality (TRC20), there are a few other key notable differences between the two types of tokens:
- TRC10 is accessible via API (application programming interface)
- TRC10 has 1000 times lower transaction fees than TRC20 but has bandwidth costs for API transfers and deposits
- TRC10 transfers and deposits into smart contracts cost bandwidth and energy
Note: bandwidth allows users to perform Tron transactions, and energy allows users to process Tron smart contracts. Instead of paying gas fees (small amounts of cryptocurrency, such as in Ethereum’s network where gas = small amounts of ETH) to perform these tasks, users freeze or lock up TRX tokens in their wallet, which generates bandwidth and energy.
For more differences between TRC10 and TRC20, see Tron’s website.
If you want to buy some TRX and take a jab at creating your own Tron-based token, Exodus gives you a safe and simple way to buy TRX with other blockchain assets!