Which Tokens Are Used in the Tron Network

Continuing the series of publications about the Tron platform, we introduce you to the concept of a token and the most popular tokens of this growing blockchain. We briefly explain what opportunities the Tron ecosystem provides to owners of tokens of different standards. These basics will help you more confidently navigate the offers of various exchanges, take part in the management of Tron, create and save your own visual, audiovisual, intellectual content without resorting to intermediaries.

A token is a crypto asset that can be used in a blockchain ecosystem for economic, managerial, or other purposes. Tokens are not synonymous with cryptocurrency. Cryptocurrencies operate on their own blockchains, while tokens are built on the blockchains of other cryptocurrencies.

However, a token can be compared to a digital representation of value. Depending on the type, the format can be used as a simple cryptocurrency - an analogue of traditional money, a digital analogue of an asset, for example, an ounce of gold. There are other types of tokens. Let's look at them.

Token development can be funded through fundraising, such as an initial coin offering (ICO). Tokens typically have some utility. There are many ways to use a token, but the most popular types of tokens are fewer than a dozen.

1. Utility tokens provide users with access to products and services in the cryptocurrency ecosystem.

2. Security tokens act as quasi-hashes and their value is tied to tradable internal assets.

3. Governance tokens are used by decentralized autonomous organizations (DAOs) to make decisions regarding the functionality of the blockchain.

4. Non-fungible tokens (NFTs) are unique assets that are most often linked to a visual or audio file.

Each type of token may have varying degrees of regulation depending on its use. Regulations that apply to security tokens may not apply to NFTs, and vice versa.

Tokens are often distributed on the blockchain startups as a way to attract investors or create a sense of exclusivity. Token holders may have certain privileges, such as the ability to contribute to the governance of the blockchain or get early access to new products.

Token standards are a set of technical rules and specifications that define the structure and functionality of tokens issued on a specific blockchain platform. They establish common principles for creating and interacting with tokens, making digital assets more convenient and transparent for users and developers.

Token standards introduce unified sets of rules for aspects such as the creation, transfer, storage, and management of tokens. They also define the basic methods and functions that must be available to work with tokens, such as transfer, balance check, and other actions on the blockchain network.

The Tron platform's ability to support multiple token standards provides a wealth of opportunities for content creators and other users. They can create and use tokens for projects with specific requirements, such as unique digital assets, game asset management, and the ability to issue their own tokens with low transaction fees.

The key blockchain standards are TRONIX (TRX) and TRC.

TRONIX (TRX) is the digital coin of the TRON project, native platform cryptocurrency. TRC tokens are quite diverse in their functions.

TRC-10 – developed standard of blockchain transfers, makes it possible to carry out transactions at a reduced cost and without using the TRON virtual machine.

TRC-20 is a more advanced version of TRC-10, which enables the implementation of swap token transactions. The function of TRC-20 is the same as TRC-10, the only difference is that TRC-20 is connected to the TRON Virtual Machine. This makes it ERC-20 compatible.

The TRC-721 standard is intended for the issuance of non-fungible tokens.

Let's look at the main standards of the Tron ecosystem tokens, their functions and advantages, including in comparison with the Ethereum blockchain standards.

Own Cryptocurrency

TRX (Tronix) is a native cryptocurrency of the blockchain, which plays a key role in the network ecosystem. This standard was created to facilitate the exchange of content and interactions in the blockchain platform, which corresponds to its main goal of decentralizing the Internet. The platform cryptocurrency has a wide interface, which is based on the blockchain.

TRX is highly scalable, meaning that applications can be implemented in a variety of ways. This is because the TRON network interacts with a huge number of different devices.

Tron network cryptocurrency is highly accessible and has a high throughput. The transaction speed in TRON is much higher than that of Bitcoin or Ethereum, for example, a money transfer can take only 3 seconds. For comparison: a transfer in Ethereum can take about 4 hours, and Bitcoin even several days. And the low fees are also pleasing compared to similar services on other blockchain platforms.

In the TRON network, users can carry out transactions without having to worry about gas fees. The payment principle assumes that 15 transfers will be carried out free of charge. For subsequent transfers, the fee will depend on the throughput of each individual transaction.

Mining of this cryptocurrency is not performed, since the consensus algorithm is Delegated The Proof-of-Stake on which TRX is built and operates does not involve mining.

The main functions of TRX (Tronix) are aimed at making it easier for users to manipulate cryptocurrency. As a result, being the main currency for dApps and DeFi in the Tron ecosystem, the platform has achieved both application decentralization and financial decentralization, including lending and interest.

Another of the most important functions of the network's native currency is democratic governance. TRX holders have a say in the network's decision-making processes, delegating it to their elected super representatives.

The currency is also used to reward network users through staking .

There are two ways to get cryptocurrency - mining and staking. Mining allows you to get coins due to the computing power of specialized equipment. Having successfully completed the task, miners receive a reward in the form of cryptocurrency.

Staking also allows you to receive a reward in the form of crypto assets, and this does not require large capacities. The owner of the coin only needs to block his savings on the account until a certain period. For this, he receives additional tokens. Judge for yourself what is more preferable.

Unique Token Standard

We will talk about the TRC-10 standard first. Tokens of this standard are created at the blockchain level, not through smart contracts in a virtual machine, and are managed in the same way. To create a unique token, you need to pay a commission. The commission for transactions is lower compared to TRC-20 tokens. This is one of the advantages of the TRC-10 standard. But for this operation, as in the case of a deposit on exchanges, a high network throughput is required.

TRC-10 tokens were originally part of the Ethereum blockchain, but after the opening of the TRON mainnet, they were migrated and exchanged on their own blockchain network. They are compatible with all major crypto wallets and are completely free to use (in most cases).

Transactions on TRON are conducted using bandwidth points, with each account receiving a certain amount of free bandwidth points every day. Holders of the platform's native token can store them in a suitable wallet. When tokens are transferred through smart contracts, both points and energy are consumed.

The main ways to use the TRC-10 token are:

· in initial coin offerings (ICOs);

· with blockchain-based products;

· as a means of payment in decentralized applications (dApp).

It should be noted that the TRC-10 token can be created by any TRON account with a minimum required amount of TRX tokens equal to 1,024. When creating such tokens, the creator must specify the token name, exchange rate with TRX, total value, definition, circulation duration, token staking, total use of points, and the maximum number of points per account. Account holders can lock their TRC-10 tokens.

In addition to the above, there is no fee for placement when using TRC-10 tokens in an ICO project, and no programming knowledge is required to create the tokens themselves. The supply of TRC-10 tokens can be increased upon their release or burned if the tokens are returned to the original address.

Key Benefits of TRC-10 Tokens

1. TRC-10 tokens are fast and scalable, and can be accessed through smart contracts and APIs.

2. TRC-10 tokens have an integrated tracking system and transaction costs are several times lower than TRC-20 tokens.

3. TRC-10 tokens allow users to download files faster than with decentralized file transfer systems.

Industries that can take advantage of TRC-10 tokens include banking and finance, retail, real estate, supply chain management, healthcare, education, media, gaming, virtual reality, augmented reality and even aviation.

TRC-20 – the Basis of Digital Tokens

It is a token standard used to develop and deploy smart contracts on the Tron blockchain platform. This protocol serves as the basis for many digital tokens on the Tron network, a blockchain known for its high transaction speeds and low fees.

Essentially, TRC-20 is to the Tron network what ERC20 is to the Ethereum network, facilitating the seamless creation and management of tokens. The TRC-20 standard enables interoperability between the many tokens and decentralized applications (dApps) developed and available on the Tron blockchain.

It provides developers with a set of predefined rules and functions, such as token transfers, token withdrawals, token inventory management, and interactions with other tokens. By following these rules, tokens can operate efficiently in the Tron ecosystem, enabling complex transactions and continuous interactions with other smart contracts and tokens.

TRC-20 tokens typically run on the Tron Virtual Machine (TVM), which functions similarly to the Ethereum Virtual Machine (EVM). This similarity means that developers familiar with Ethereum's Solidity programming language can easily adapt to creating TRC-20 tokens, as both platforms use the same language for smart contracts.

This cross-compatibility is a well-known design choice made by the Tron team. The developers wanted to make a blockchain Tron is a great alternative to Ethereum, aiming to attract developers with the promise of lower transaction costs and faster processing times – and they succeeded!

In the crypto community TRC-20 cryptocurrency tokens are widely known and used by investors and traders who prioritize fast transaction speeds and low fees.

These features make TRC-20 an attractive option for developers looking to deploy digital tokens or create new types of decentralized applications without the high costs associated with other blockchain networks.

TRC-20 Standard Tokens

There are many TRC20 tokens on the TRON network that make significant contributions to its ecosystem.

Below, we'll take a look at five of the most notable TRC20 tokens, discussing their utility, market presence, and distinctive features.

USDT (TRON Tether)

USDT is a TRON-based version of Tether that is primarily used to provide stability and address volatility in cryptocurrency markets. It is pegged 1:1 to the US dollar, providing a stable store of value and a medium of exchange.

As a TRC20 token, USDT benefits from TRON's low transaction fees and fast processing times, making it a popular choice for traders looking for fast, cost-effective transfers.

BitTorrent (BTT)

BTT is used in the BitTorrent ecosystem, which is one of the largest decentralized networks in the world. It incentivizes users to share their bandwidth and resources, increasing overall network performance and speed.

The token integrates blockchain technology into a well-established peer-to-peer (P2P) file sharing service, expanding its functionality through a blockchain-based incentive structure.

WINkLink (WIN)

WIN is the native token of WINkLink, a decentralized oracle network on the TRON blockchain.

The project is focused on providing reliable data sources for smart contract execution. It allows developers to connect with each other and with real data, as well as connect smart contracts with real data.

WINk leverages the capabilities of the TRON blockchain to create a transparent environment where all transactions are recorded on the blockchain, ensuring the decentralized nature of the platform.

JUST (JST)

JST is the governance token for the JUST platform, a decentralized financial system (DeFi) built on TRON. It is used for interest payments, governance participation through voting, and other purposes in the JUST ecosystem.

JST allows users to directly engage with a suite of DeFi products that offer loans and governance mechanisms, all thanks to the low-cost and high-speed capabilities of the TRON network.

Sun (SUN)

SUN is a social experiment aimed at developing the DeFi ecosystem on TRON. It serves as the main governance token of the SUN.io platform, which specializes in decentralized stablecoin exchange.

As a governance token, SUN allows holders to participate in decision-making processes that determine the development of the platform, including feature updates and protocol adjustments.

Development of Token Standards

It is important to understand that TRCs are standards based on Tron blockchain and TRX is the native governance token of the Tron ecosystem. And the development of new standards continues: the platform has expanded its capabilities with standards for non-fungible tokens, as well as a unique standard that has improved the process of exchanging assets on the blockchain platform.

The TRC-721 standard is used to create NFTs – non-fungible tokens – in the blockchain network to create unique digital assets. These can be any art objects and intellectual property objects – from works of art to gaming accessories. Each token of this standard has its own value and properties.

And each of the newly created non-fungible tokens in the TRC-721 standard is provided with an owner identification number and all the necessary identification data and information recorded in the smart contract, which ensures the uniqueness and immutability of each such token.

NFT standards are widely used in various areas where blockchain is used. Most NFTs are based on Ethereum, namely the ERC-721 standard and its improved versions.

Considering the number of decentralized finance (DeFi) projects interested in integrating NFTs to improve their ecosystems, Tron developers believe that the TRC-721 standard will open up a ton of opportunities for developers building new blockchain-based applications.

Each TRC-721-based token has a unique identifier, allowing real items to be moved digitally without compromising their value. Tokens created based on the TRC-721 standard represent any digital type of real-world tangible asset. People can own and manage data associated with a specific tangible object or document. This is a protection against fraud, plagiarism, or counterfeiting of products.

The TRC-1155 standard supports the creation of both fungible tokens and NFT standards. It improves the communication functions of the platform, as it allows for the efficient management of several token standards at once and also enables the exchange of assets without the need for intermediaries. Different types of tokens can be exchanged within a single smart contract. Expands the capabilities of users who trade their own game assets on various gaming platforms.