TRC-20 is a token standard on the Tron blockchain for integrating tokens into smart contracts for use as cryptocurrencies. In this article, I will explain how TRC-20 tokens work, their advantages and disadvantages, examples and how you can create them.
What are TRC-20 tokens?
TRC-20 tokens are digital assets created and managed by smart contracts running on the Tron blockchain. TRC-20 tokens are compatible with TRX, Tron's native cryptocurrency and supported by any wallet or exchange on the Tron network. TRC-20 tokens must have a specific interface to be compatible with Tron Virtual Machine (TVM), Tron's smart contract platform. This interface contains functions and events that define the name, symbol, total supply, ownership, transfer and validation of tokens.
What are the advantages of TRC-20 tokens?
The biggest advantage of TRC-20 tokens is that they can be transacted quickly, cheaply and securely on the Tron blockchain. TRC-20 tokens can process thousands of transactions per second thanks to the high scalability of the Tron network and low transaction fees. In addition, TRC-20 tokens can be used to create complex smart contracts thanks to the advanced programming capabilities offered by TVM. TRC-20 tokens can be easily integrated with other projects in the Tron ecosystem and used for a variety of applications. For example, TRC-20 tokens can be used for decentralized applications (DApp), decentralized exchanges (DEX), decentralized finance (DeFi), games, NFTs and more.
What are the disadvantages of TRC-20 tokens?
The major drawback of TRC-20 tokens relates to the security and decentralization of the Tron blockchain. The Tron blockchain uses a delegated proof-sharing (DPoS) consensus mechanism governed by 27 super-agents. These super agents generate and validate blocks to ensure the functioning of the network. However, the selection and management of these super-agents is not entirely transparent and can sometimes be subject to the influence of central authorities or major players. This can jeopardize the reliability and impartiality of the Tron blockchain. In addition, TRC-20 tokens are subject to TVM's limitations. TVM is designed to be compatible with Ethereum's smart contract platform, the Ethereum Virtual Machine (EVM). This means that TVM inherits some of the flaws or weaknesses of EVM. For example, TVM does not provide flow control like EVM, which can lead to bugs or hacks in smart contracts.
What are examples of TRC-20 tokens?
TRC-20 tokens are the power behind some of the most popular and successful projects on the Tron blockchain. Examples of TRC-20 tokens are:
- USDT: Tether is the world's largest stablecoin. USDT is a 1:1 pegged coin to the US dollar. USDT is published on the Tron blockchain in accordance with the TRC-20 standard and has become a popular transaction tool thanks to the speed and low cost of the Tron network.
- BTT: BitTorrent Token is the native token of BitTorrent, the world's largest decentralized file sharing network. BTT is published on the Tron blockchain in accordance with the TRC-20 standard and provides BitTorrent users with incentives for file sharing, storage and streaming.
- WIN: WINK is a gaming platform running on the Tron blockchain. WIN is WINK's native token and is issued on the Tron blockchain in accordance with the TRC-20 standard. WIN can be used to participate in games on the WINK platform, place bets and win prizes.
- SUN: SUN is a DeFi platform running on the Tron blockchain. SUN is SUN's native token and is issued on the Tron blockchain in accordance with the TRC-20 standard. SUN can be used to provide liquidity, participate in governance and earn interest on the SUN platform.
How are TRC-20 tokens generated?
To generate TRC-20 tokens, you first need a Tron wallet. Tron wallet is a digital wallet that you can use to store and send TRX and TRC-20 tokens. To create a Tron wallet, you can use an app like TronLink or TronWallet, which you can download from Tron's official website or app store. After creating your Tron wallet, you need to purchase TRX. TRX is the fuel or gas required to transact on the Tron network. To buy TRX, you can use an exchange platform where you can exchange it for fiat money or other cryptocurrencies by credit card or wire transfer. After you buy TRX, you need to transfer it to your wallet.
The final step to generate the TRC-20 token is to write a smart contract. A smart contract is a piece of code that defines the properties and rules of your token. To write smart contracts, you can use a programming language called Solidity. Solidity is compatible with TVM, Ethereum's smart contract language. After writing your smart contract, you need to compile and distribute it on TVM.