What is TRC20? Important information and TRC20 standards

TRC20 is a standard token similar to ERC20 but established on the foundation of the TRON network. Like other code standards, TRC20 has its own operating rules and characteristics. Let’s find out in detail what TRC20 is and how to use this token through the article below.

Overview of TRC20

TRC20 operates on the Tron network. Therefore, to understand this token clearly, we need to understand what the Tron network is?

What is the Tron network?

TRON is a public blockchain, allowing anyone to create and issue their tokens according to the rules specified in the smart contract standard.

The TRON network uses the same Solidity language for contract programming as Ethereum. Therefore, all TRON tokens and smart contracts are fully compatible with the Ethereum network. That means TRON tokens can be used on the Ethereum network and vice versa.

However, unlike ETH, which uses a Proof of Work (PoW) consensus mechanism, the TRON network uses a Delegated Proof of Work (DPoS) consensus method. This results in faster transaction speeds and lower transaction costs. On average, each block transaction time on the Tron network takes only 3 seconds, while Ethereum can take 15 seconds.

What is TRC20?

TRC20 is the standard used to issue new tokens on the TRON blockchain, created based on the Smart Contract platform of the TRON blockchain network.

TRC20 has a similar structure to the ERC20 token on Ethereum and has a standard that is fully compatible with its standards. For that reason, tokens issued based on ERC20 can switch Smart Contracts to use TRC20.

All TRC20s can interact seamlessly with all other tokens and applications created on the TRON network. Users can use this standard to create and issue their own tokens.

What rules does TRC20 have?

Like other Tokens, TRC20 also has its own rules to ensure safety and security. The rules of TRC20 include:

Optional rules

• The correct way to write a token is to write it according to the prescribed name.
• When writing the token there must be no deviation from the ticker.
• It is necessary to determine the minimum unit of the token accurately.

Mandatory rules

• The maximum number of tokens is called the supply and is built by the TRON network.
• The balance on TRON will be displayed at Balance Of.
• TRC20 allows third-party support.
• The token can be taken from the user’s account to transfer it elsewhere.
• The remaining amount of tokens will be notified to users.

Distinguish between TRC10 and TRC20

Similar to Ethereum having many different ERC standards such as ERC721, ERC20, ERC1155 or ERC1190, the TRON network after MainNet implementation also has two standards for issuing Tokens: TRC10 and TRC20.

The TRC10 standard is easier to use so it is relatively popular, it is not even an exaggeration to say that you can completely issue a token on the TRC10 platform without needing to know the code. However, the disadvantage of this standard code is that you have no way to increase the supply but can only burn less Tokens, besides, TRC10 transactions only consume Bandwidth Points on the TRON network.

Although not as user-friendly as TRC10, TRC20 is gradually growing stronger thanks to the appearance of USDT Tether TRC20 protocol. This makes TRC20 more customizable than the old TRC10 but also more difficult to set up. Another plus point of TRC20 is that its transactions consume both Bandwidth Points and Energy.

In addition to the factors mentioned above, you can refer to the differences between TRC10 and TRC20 in the table below:

How to identify TRC20 standards

TRC20 in particular and the TRON network in general were created as a more efficient copy of Ethereum, with lower costs and faster transaction speeds.

All tokens on the TRC20 network will be supported by specific virtual wallets and can be swapped, transferred and shared, as long as they follow the rules specified in the smart contract.

To identify the TRC20 token standard, you can rely on the following factors:

• TRC20 wallet addresses usually start with a capital letter “T”. For example, TR7NHqjeKQxGTCi8q8ZY4pL8otSzgjLj6t.
• TRC20 has almost instant transaction speed, and is considered a token standard with outstandingly fast transaction speed compared to other standards today.
• Besides outstanding transaction speed, zero transaction fees are also another plus point for TRC20, thanks to which it is often chosen as a replacement when transferring and sending USDT.

The project uses TRC20

With the advantages and efficiency of low gas fees, speed and fast transaction processing, TRC20 is being chosen and used by many projects.

Until now, the world’s third largest virtual currency project Tether is considered the largest and most famous project using the TRC20 token standard. Tether does not charge transaction fees while Ethereum has relatively high transaction fees, this is Tenther’s huge advantage.

After Tether, Revain is also another project using the TRC20 token, it is built on Trustpilot’s blockchain platform.

Just is a variant of the Maker DAI coin based on the TRON network. With Just, users can stake TRX tokens against collateralized debt positions, thereby creating a more stable coin called USDJ that is pegged to the value of the US dollar.

How to create a USDT TRC20 storage wallet

To store USDT, you first need to create a wallet in TRC20 and add USDT to the wallet. This process will be carried out as follows:

Create Account

Step 1: To get started, you need to add the Tron network to Metamask, then download the TronLink application from the App Store or CH Play to your device.

Step 2: Once you have the application, open Tronlink and select Create Account to create a new account.

Step 3: An introduction message will appear and you scroll down to select Accept.

Step 4: You proceed to enter the registration information in the order displayed including:

– Set Name: Set the account name and select Next Step.

Set Password: Set a password for the account and select Next Step.

Note: The password requires at least eight characters, including at least one uppercase letter, one lowercase letter and one number.

Enter Password Again: Re-enter the newly created password to ensure accuracy and click Confirm to confirm.

Backup Mnemonic: Tap Back up now, then tap Got it to get 12 recovery words.

Note: You must remember these 12 words in any way in the correct numbered order. They are used in case your Tronlink account is logged in on a new device or you need to restore your account. when you forget your password.

After receiving 12 words, click on I have saved it securely to move to the next step.

At the new interface, you will have to choose the first word (from 1 – 6) in the correct order that the system has provided for you. After selecting, click Next Step to go to the next step. You continue to choose the second word (from 7 to 12) to verify as above. After selecting, click Carry out to complete the account creation process.

How to add USDT to TronLink wallet

You find and click on the (+) icon at TronLink’s main interface, then click search and select USDT or enter the Contract address of this token in the box. After finding the USDT option, click on the (+) icon next to it and you’re done.

It can be seen that TRC20 is growing stronger and receiving the love of many investors. This is a token that shows great potential in the future. Hopefully Finhay’s article above has brought you useful information about TRC20, from which you can make the most suitable choice for your cryptocurrency investment process.