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- 1 TRC20 is the chief token protocol from the TRON ecosystem which offers many striking features.
- 2 Due to all its attributes, the token has seen huge adaptability in various domains.
Cryptocurrency is a progressive and evolving technology. Calling it a mere technology would be an understatement since it has become a whole industry. It all started with just one Bitcoin and today, there are many popular blockchains along with their respective tokens. All these different protocols bring some unique features with them. Some promise more scalability while others claim indomitable security.
Several token standards have gained huge popularity within the crypto community today. They have brought some unique features while enhancing the technology’s outreach and adaptability. Tron is one such blockchain which was introduced in 2017 by a Singapore non-profit organization.
It soon introduced the TRC-20 token standard which soon became popular. Many considered it an alternative to ERC20 while viewing Tron as an alternative to Ethereum. Since they both work on blockchain, having similarities between the two is no big surprise. However, TRC20 has its peculiarities that must be understood thoroughly.
Insights into TRC20
TRC20 is a blockchain-based token standard that facilitates the creation of new tokens. Using smart contracts, it enables the users to store and transfer the tokens’ value. Although they are similar to ERC-20 tokens, TRC20 is compatible only with the TRON blockchain. To transfer it to other blockchains, users need to utilize bridges.
TRC20 tokens are fungible, transferable, and are supported by wallets like TronLink. Moreover, they can be easily integrated into a range of decentralized applications that use the TRON blockchain. Today, TRON is one of the most widely used cryptocurrencies in the worldl.
Reportedly, the ecosystem records transactions worth $20 billion every 24 hours. TRC20 is a part of the big TRON family that offers many other digital assets. It also offers TRON USDT, a stablecoin that functions like an ordinary blockchain-based token. Nonetheless, it is an integral part of the TRON ecosystem with a market capitalization of over $1 billion.
At this point, one must become familiar with other types of TRC token standards. They all offer some unique attributes so that they are useful to users.
TRC-721– This standard is dedicated to the creation of non-fungible tokens (NFTs). Notably, ERC-721 from Ethereum is used for the same purpose.
TRC-1155– Similar to Ethereum’s ERC-1155, this one is also used to manage NFTs. It takes the functionality level ahead and addresses the existing inefficiencies.
TRC-10– This one is quite exclusive to TRON and comes with some specific criteria. Every member of the blockchain can issue a TRC-10 token. They just have to pay 1024 TRX while using bandwidth for deposits and API transactions. As compared to TRC-20, this token attracts a lower transaction fee.
Notable Features of TRC20
With the following attributes, TRC20 emerges as a promising option in the crypto space.
Interoperability– TRC20 operates seamlessly within the TRON ecosystem. The token holders can easily use it on TRON-based dApps, exchanges, wallets, etc.
Customization– The standard allows the users to create bespoke products based on their requirements. They can define specific criteria like decimal places, total supply, token name, etc. With customized parameters, they can get a unique asset.
Scalability– By design, the TRON blockchain can handle a huge volume of transactions. With that ability, the TRC20 becomes a go-to option for projects requiring broad scalability. It can execute thousands of transactions per second and also support high-frequency payments.
Low Cost– As mentioned above, TRC20 manages to deliver low transaction fees. By optimizing the smart contract interactions, it makes transactions cost-effective when compared to many other blockchains.
Security– TRC20 gets the security standards used by the TRON blockchain itself. The latter uses a Delegated Proof of Stake (DPoS) consensus mechanism that solves many security issues. It addresses the issue of double-spending while keeping many other concerns at bay.
With so many striking attributes, TRC20 becomes a choice for many real-world tasks. Let’s see some of its use cases that work to prove the protocol’s worthiness.
Popular Use Cases of TRC20
Utility Tokens– TRC20 tokens have seen a high adoption in the form of utility tokens. They have ease of access, high security, cheap transactions, and scalability to projects. Also, token holders can use them for various services within the TRON ecosystem.
Initial Coin Offerings– Since the tokens prove to be good utility assets, they have been extensively used in ICOs. Projects have benefitted from the scalability and security aspects of TRC20.
Decentralized Exchanges– Traders preferring DEXs can enjoy trading with TRC20 tokens. They can be easily traded on exchanges that support the TRON network.
Gaming– TRC20 tokens are a great option for in-game assets and rewards. They make transfers and transactions of tokens easy while bringing new possibilities to the gaming sector.
Stablecoin– TRON USDT, the stablecoin, has seen high adoption due to price stability and seamless transactions. Many relevant projects have opted for it after comparing all the existing options.
Final Thoughts
TRC20 has played an instrumental role in TRON’s success. It has enabled the parent network to reach more users with brighter possibilities. Thus, it won’t be wrong to anticipate more growth and adaptability for both. Nevertheless, the crypto world is full of uncertainties so nothing really ensures its prospects. The community and users can hope that TRC20 continues to soar high with more technological advancements in the future.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
