TRC20 vs BEP20: Which Is Better

In the rapidly evolving crypto space, different token standards have emerged, each with unique features and functionalities tailored to specific networks. Two prominent token standards that have gained significant attention are TRC20 and BEP20. Understanding the differences and similarities between these standards is crucial for developers, investors, and anyone interested in cryptocurrencies. Therefore, you can find below a thorough comparison of TRC20 vs BEP20, considering key aspects of each standard.

Understanding Crypto Token Standards

Crypto token standards are sets of rules and guidelines that define tokens' characteristics, behavior, and functionalities within a blockchain network. These standards ensure interoperability, security, and consistency across different tokens, making it easier for developers to create, manage, and integrate tokens into various applications. Here are some key aspects of crypto token standards:

Interoperability: Token standards ensure that tokens can be used across different platforms, applications, and wallets without compatibility issues. This uniformity is crucial for fostering a robust ecosystem where different projects can interact seamlessly.
Security: Adhering to established token standards helps ensure the security of tokens by following best practices in coding and smart contract development. This reduces the risk of vulnerabilities and exploits.
Consistency: Token standards provide a consistent framework for token behavior and interactions, making it easier for developers to predict and manage token operations. This consistency is essential for building reliable and user-friendly applications.
Simplified Development: With clear guidelines and predefined functionalities, token standards streamline the development process for creating new tokens. Developers can leverage existing templates and libraries, speeding up the time to market.
Market Liquidity: Standardized tokens can be easily listed and traded on various exchanges, increasing their liquidity and marketability. This is vital for the success of token projects, as it provides more opportunities for users to buy, sell, and trade tokens.

BEP20 Token Standard

BEP20 is a token standard on Binance Smart Chain (BSC), developed by Binance. It is designed to be compatible with Ethereum’s ERC20 standard, ensuring interoperability between the two networks. Binance Smart Chain is renowned for its speed and low transaction costs, which have attracted a large number of developers and projects.

TRC20 Token Standard

TRC20 is a token standard on the TRON blockchain, designed to be fully compatible with Ethereum's ERC20 standard. This compatibility allows for seamless interaction between tokens on the Ethereum and TRON networks, facilitating interoperability. TRON, known for its high throughput and low transaction costs, has become popular for decentralized applications (dApps) and token issuances.

Development Process for BEP-20 Tokens

Creating BEP20 tokens on the BSC involves several key steps, including setting up a development environment, writing the smart contract, deploying it, and verifying it. Creating a BEP20 token is surprisingly straightforward. In fact, many sources indicate that one can whip up a basic BEP20 token without any technical know-how or experience with blockchain technology. However, to develop a customized, feature-rich BEP20 token from scratch, it is better to count on the skills of a professional BEP20 token developer.

TRC-20 Token Development

Creating new TRC20 tokens is possible through TRON’s developer website (https://developers.tron.network/). To get started, one needs to prepare the TRC20 smart contract code, which does require some technical know-how and programming skills. Once the code is written, one can deploy the contract on the network and start issuing new tokens.

Benefits of the TRC20 and BEP20 Token Development

Both TRC20 and BEP20 token standards offer significant advantages for developers, businesses, and users within the blockchain ecosystem. Here’s a closer look at some benefits of developing tokens under these standards.

High Throughput

The TRON network boasts a high transaction per second (TPS) rate, allowing for quick and efficient processing of transactions. Likewise, BSC offers high TPS and low latency. This benefit makes TRC20 and BEP20 tokens ideal for applications that require fast transaction speeds, such as gaming and real-time financial services.

Low Transaction Fees

The TRON network offers lower transaction fees compared to many other blockchains. BSC transactions are also known for their low fees. This cost efficiency makes these token standards attractive for developers and businesses, especially those with high transaction volumes.

Ethereum Compatibility

TRC20 and BEP20 tokens are compatible with Ethereum’s ERC20 standard. This compatibility facilitates seamless integration and migration of projects between Ethereum and TRON or BSC, expanding the potential user base and market reach. It also allows leveraging existing Ethereum-based tools and infrastructure.

Robust Ecosystem

TRON has a vibrant ecosystem with numerous dApps, DeFi projects, and a large user base. Similarly, BSC has a rapidly growing ecosystem with numerous DeFi projects, NFTs, and other applications. In both cases, developers can leverage a dynamic ecosystem to enhance their projects, benefit from cross-project collaborations, and attract a wide range of users.

Developer Support

TRON provides extensive documentation, developer tools, and community support. This benefit helps streamline the development process, making it easier for developers to create and deploy TRC20 tokens. On the other hand, BSC is supported by Binance, one of the largest cryptocurrency exchanges in the world. This backing provides credibility and access to a vast network of resources, marketing channels, and potential users.

Enhanced Security

In the case of BSC, this blockchain employs a Proof-of-Staked Authority (PoSA) consensus mechanism. This hybrid model ensures a secure and efficient network, combining aspects of Proof-of-Stake (PoS) and Proof-of-Authority (PoA) to safeguard transactions and smart contracts.

Cost of Creating a Cryptocurrency Token

The exact cost of creating a crypto token is hard to pin down. Factors such as the development company you choose, the number of tokens, the size of the development team, the technology used, and other considerations will all significantly influence the overall expense. It is important to know all these factors to determine what type of token development project a company can fund. Let us discuss in more detail these factors:

Development Company: High-profile firms with extensive experience may charge more than newer or less-established companies. Development costs can also vary depending on the country or region where the company operates.
Token Type and Complexity: Simple tokens with standard functionalities (like TRC20 and BEP20) are generally cheaper to create. Tokens with advanced features such as governance mechanisms, staking, or specific economic models will cost more to develop.
Number of Tokens: Creating one token is less expensive than developing multiple tokens or a complex ecosystem of tokens. Configuring supply mechanisms, distribution schedules, and minting functions can incur additional costs.
Development Team Size: A small team may cost less but take longer to complete the project. A larger team can speed up development but will increase costs.
Preferred Technology: Different blockchains have different development environments and requirements, affecting the cost. Writing and auditing smart contracts for security and efficiency add to the expense.
Additional Services: Security audits by third-party firms ensure the token is secure and free from vulnerabilities, adding to the cost. Likewise, ensuring that the token complies with relevant regulations can also incur additional expenses.
Lastly, promoting the token and managing its launch can significantly affect the total budget.

The following cost estimates are given as a reference in 2024. However, as said, the final cost can vary widely:

Basic Token Creation ($1,500 to $5,000) includes creating a standard token with basic functionalities like TRC20 or BEP20 without additional custom features.
Custom Token Development ($5,000 to $30,000) includes advanced features, custom functionalities, and thorough testing and auditing.
Comprehensive Development and Launch ($30,000 to $100,000+): It encompasses end-to-end development, security audits, legal compliance, marketing, and launch support.

Key Considerations for Crypto Token Development

Token development goes far beyond just creating an icon and a symbol. It consists of developing a sophisticated application based on financial design principles. It involves implementing various features and functionalities that define the token’s utility, security, governance, and economic model, designed to address well-defined use cases and goals. Below, we briefly discuss the most important considerations.

Token Burn

Determine whether tokens will be burned to reduce supply and increase demand. If so, establish the frequency and amount of tokens to be burned.

Token Interoperability

The token needs to adhere to the specific token standard it is based on, ensuring it can seamlessly interact within its blockchain ecosystem.

Token Listing

Once the token is developed, it needs to be listed on crypto exchanges to enable trading and increase its accessibility. Platforms like LetsExchange.io are ideal for promoting the adoption of recently created tokens.

Token Ownership Rights

Clarify the rights of token holders. These could include governance rights, voting rights, or no additional rights at all.

Token Supply

The maximum supply must be defined in advance when creating a crypto token. This sets the total number of tokens that will ever exist.

Token Issuance

Decide how new tokens will be generated or issued. It could be through mining, staking, or a combination of both.

BEP20 vs TRC20 Tokens

When comparing BEP20 vs TRC20 tokens, one can notice that the key difference between these token standards is where they reside. Like ERC20 tokens make their home on the Ethereum blockchain, BEP20 tokens are based on the BSC, and TRC20 tokens groove on the TRON blockchain. However, there are other differences that we discuss below.

Efficiency Comparison

BSC is approximately five times more efficient than Ethereum due to its Proof-of-Staked Authority (PoSA) consensus mechanism. TRON is equally efficient with its Delegated Proof-of-Stake (DPoS) mechanism.

Gas Fees Analysis

Gas fees for BEP20 and TRC20 tokens range from $0.4 to $15 in 2024. Considering that gas fees on the Ethereum blockchain are over $30, BEP20 and TRC20 tokens ensure the lowest fees among the three most popular token standards.

Block Verification Speed

Both BSC and TRON have a 3-second block processing time. Hence, BEP20 and TRC20 tokens are pretty similar in this aspect.

Security Features

TRON implements a moderate security level, ensuring the integrity of TRC20 tokens in most cases. Although TRON’s security level is not on par with Ethereum, it is quite acceptable. In contrast, BEP20 has a low-security level.

Programming Language Differences

Both BSC and TRON use the same programming language, Solidity. This language is also used to implement ERC20 tokens on Ethereum. Hence, BEP20 and TRC20 tokens are primarily interchangeable and cross-compatible. Aside from differences in fees and usability, the process of creating and deploying BEP20 and TRC20 tokens is essentially the same.

FAQ

How do TRC20 and BEP20 tokens differ?

The main difference is the network on which they operate. However, they also have advantages and disadvantages that make them different. For instance, TRC20 tokens enjoy high throughput, low transaction fees, and a strong ecosystem. However, TRON is not very popular and is often criticized for being more centralized than other blockchains. BEP20 tokens also enjoy high performance, low fees, and a large ecosystem. However, BSC has faced security issues with some projects, which might concern developers and users. The complaints against BEP20 regarding centralization are also relevant.

Moreover, BSC can experience congestion during high-traffic periods, leading to slower transaction times. So, TRC20 vs BEP20 which is better? Determining whether TRC20 or BEP20 tokens are better depends on the project’s specific needs and the context in which the tokens will be used.

In general, one should choose the TRC20 standard when extremely low transaction fees and high-speed transactions are needed. TRC20 tokens are more suitable for projects focused on gaming, entertainment, or other applications that can benefit from TRON’s ecosystem. On the other hand, the BEP20 is most recommended when one intends to leverage the extensive Binance ecosystem, including DeFi and NFT projects.

Which blockchain networks do TRC20 and BEP20 tokens operate on?

TRC20 tokens operate on the TRON blockchain, whereas BEP20 tokens operate on Binance Smart Chain (BSC).

Can TRC20 tokens be converted to BEP20 tokens and vice versa?

Yes, TRC20 tokens can be converted to BEP20 tokens and vice versa through a process known as token bridging or cross-chain swapping. This process allows tokens to be transferred between different blockchain networks.