What are Token Standards?

What are Token Standards

Content provided by various contributors. DYOR.

Token standards are protocols for representing digital assets on the blockchain. Some examples of token standards include ERC-20, BEP-20, ERC-721, TRC-20, and OMNI. These standards define a token contract’s functions and characteristics, such as how the tokens can be transferred and what information they transfer. In addition, different blockchain platform applications allow different tokens to be easily exchanged and understood.

The Difference Between Coins and Tokens

Coins and tokens are both types of digital assets that are built on top of blockchain technology. However, there are some key differences between the two:

  1. Coins are a type of cryptocurrency that serves as a medium of exchange and a store of value. They are often decentralized and have their blockchain. Examples of coins include Bitcoin, Ethereum, Monero, and BNB Chain.
  2. Tokens are digital assets that represent a specific asset or utility. They are often built on top of an existing blockchain, such as Ethereum, BNB Chain, or TRON, and can be used to represent a wide range of assets, including currency, commodities, and even real-world assets like real estate.

In summary, coins are a type of cryptocurrency with a blockchain, while tokens are digital assets built on an existing blockchain.

Examples of Popular Token Standards

Bitcoin live price
price change

Some of the most popular token standards include:

  1. ERC-20: The ERC-20 standard is widely used on the Ethereum blockchain and has become the de facto standard for creating and issuing tokens. It defines a set of rules a token contract must follow, including how the tokens can be transferred and what information they store. As a result, ERC-20 tokens are easy to exchange and understand, contributing to their widespread adoption.
  2. ERC-721: The ERC-721 standard is used for creating non-fungible tokens, which represent unique assets that cannot be exchanged for other tokens on a one-to-one basis. The ERC-721 standard is often used for creating collectible items, such as digital art or in-game items.
  3. ERC-1155: The ERC-1155 standard creates tokens representing fungible and non-fungible assets in a single contract. This allows for efficiently creating and managing tokens that represent a mix of interchangeable and unique assets.
  4. BEP-2: The BEP-2 standard is used for creating and issuing tokens on the Binance Chain, a high-performance blockchain platform optimized for fast and cheap token transactions.
  5. BEP-20: The BEP-20 standard is used for creating and issuing tokens on the Binance Smart Chain. This blockchain platform is interoperable with the Ethereum blockchain and allows for creating smart contracts and decentralized applications.
  6. TRC-10: A token standard used on the TRON blockchain that allows for the creation and issuance of tokens with lower transaction fees and faster transaction times compared to other token standards.
  7. TRC-20: A token standard used on the TRON blockchain that is fully compatible with the Ethereum ERC-20 standard, allowing for the easy creation and issuance of tokens that can be used on both the TRON and Ethereum networks.
  8. NEP-5: A token standard used on the NEO blockchain similar to the Ethereum ERC-20 standard and allows for the easy creation and issuance of tokens on the NEO network.
  9. Omni: A token standard that allows for the creation and issuance of tokens on the Bitcoin blockchain using the Omni Layer protocol.
Read more from author

Editor's picks

What Is Crypto Historical Data and How to Use It in Trading

Crypto historical data refers to past information related to cryptocurrencies such as Bitcoin, Ethereum, and others. This data includes various metrics such as price, trading volume, and market capitalization. Crypto historical data is useful for several purposes in crypto trading. First, it helps traders and investors make informed decisions by comprehensively understanding the crypto market's past performance. Crypto Historical Data Use Cases Here are some of the ways crypto historical data is used in crypto trading: Technical Analysis: Traders use…

How to Effectively Predict Crypto Prices

Predicting crypto prices is a complex task and requires a combination of technical analysis, fundamental analysis, and market sentiment. Here's a guide to help you effectively predict crypto prices: Technical Analysis: This involves studying past market data, including price and volume trends, to identify patterns and predict future price movements. Use charting tools, such as candlestick charts, to visually represent this data. Fundamental Analysis: This involves analyzing the underlying factors that may impact the value of a cryptocurrency, such as…

Guide to Value a Cryptocurrency

Valuing a cryptocurrency can be difficult and subjective, as many factors contribute to its worth. However, here are some steps and considerations for valuing a cryptocurrency: Market capitalization: This is the total value of the cryptocurrency in circulation. It is calculated by multiplying the total number of coins by the current market price. Adoption and usage: The more people use cryptocurrency, the more valuable it is likely to become. This includes individuals and businesses using it for transactions or as…

The Best Crypto Portfolio Trackers (Coin Trackers)

Crypto portfolio trackers are apps or websites that allow users to monitor their cryptocurrency holdings across multiple exchanges and wallets in one place. They connect to users' exchange and wallet accounts through APIs (Application Programming Interfaces) and automatically track the user's cryptocurrency holdings and transactions. The tracker updates in real-time and provides an overview of the user's total portfolio value, asset allocation, and returns. This allows users to track their investment performance and make informed decisions easily. What Should The…

An Overview of Different Cryptocurrency Scams

Cryptocurrency scams are fraudulent schemes that are becoming increasingly common as the popularity of cryptocurrencies continues to grow. They can take many forms and are often designed to appear legitimate investment opportunities or exchanges. Unfortunately, these scams can cause significant financial losses for individuals and harm the reputation of the cryptocurrency industry as a whole. It is crucial for anyone considering investing in cryptocurrencies to be aware of the various types of scams and to take steps to protect themselves.…

What Are Crypto Data Aggregators?

Crypto data aggregators gather data from multiple sources to provide comprehensive and real-time information about the cryptocurrency market. They pull data from various exchanges, trading platforms, and other sources to centralize the information and present it in a user-friendly format. The data includes cryptocurrency prices, trading volume, market capitalization, news, and other relevant information. Crypto data aggregators use algorithms to clean, process, and normalize the data to ensure accuracy and consistency across multiple sources. The information is then presented in…

What Is CoinGecko?

CoinGecko is a cryptocurrency data aggregator and tracking platform. It provides information and insights on the cryptocurrency market, including price, volume, trading activity, developer activity, and community growth. How CoinGecko Works Data Aggregation: CoinGecko collects crypto data from various cryptocurrency exchanges, wallets, and blockchains to create a comprehensive database of cryptocurrency information. Calculation of Metrics: CoinGecko calculates several metrics, such as market capitalization, trading volume, liquidity, and community growth, to provide a comprehensive overview of the cryptocurrency market. Display of…

What Is CoinMarketCap (CMC)?

CoinMarketCap (CMC) is a website that provides information about the cryptocurrency market and tracks the capitalization of various cryptocurrencies. It was founded in 2013 and has become one of the most popular cryptocurrency data providers. CMC aggregates information about the prices, volume, and market capitalization of cryptocurrencies from various exchanges and calculates the average value. Furthermore, the website displays this information in real-time, giving users a comprehensive overview of the cryptocurrency market. CMC tracks over 22,000 cryptocurrencies, including Bitcoin, Ethereum,…

What Are Crypto Pyramid Schemes?

A crypto pyramid scheme is a fraudulent investment scheme where returns are paid to existing investors from funds contributed by new investors. It's called a "pyramid" because it typically has many new entrants at the bottom, with each layer representing fewer investors. Example: John starts a pyramid scheme and invites five friends to invest 1 Bitcoin each. John promises to return 2 Bitcoins to each participant in a month. John needs 10 Bitcoins to fulfill his promise, so he invites…