What are Token Standards?

What are Token Standards

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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

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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.
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