NETTS / DOCUMENTATION

# Which Tokens Are Used in the Tron Network

Continuing our series on the Tron platform, this article introduces the concept of a token and highlights the most popular tokens in this rapidly growing blockchain ecosystem. We explain the opportunities offered by the Tron ecosystem for owners of various token standards, enabling you to confidently navigate exchange offers, participate in network governance, and create or preserve your visual, audiovisual, and intellectual content without intermediaries.

Key Points:

  • Definition of Tokens: Understand that a token is a crypto asset used within a blockchain ecosystem for economic, managerial, or other purposes.
  • Token vs. Cryptocurrency: Unlike cryptocurrencies which operate on their own blockchains, tokens are built on existing blockchains.
  • Token Types: Explore utility, security, governance, and non-fungible tokens (NFTs) and their various uses.
  • Token Standards: Learn about TRONIX (TRX) and TRC standards and how they empower developers and content creators.

# What Is a Token?

A token is a digital representation of value that can be used in a blockchain ecosystem. While not synonymous with cryptocurrency, tokens can serve as:

  • Currency equivalents (digital money or asset analogues, like an ounce of gold),
  • Access keys to products and services,
  • Tools for governance within decentralized organizations (DAOs).

Token development can be funded through fundraising (e.g., Initial Coin Offerings - ICOs), and tokens typically carry specific utilities.

Main Token Types:

  1. Utility Tokens: Provide access to ecosystem products and services.
  2. Security Tokens: Their value is tied to internal tradable assets.
  3. Governance Tokens: Used in DAOs for decision-making.
  4. Non-Fungible Tokens (NFTs): Unique assets usually linked to visual or audio files.

Each token type may be subject to different regulations, and token holders might enjoy special privileges, such as governance participation or early product access.

# Token Standards on the Tron Network

Token standards are sets of technical rules that define token structure and functionality. They ensure a unified approach for token creation, transfer, storage, and management.

# TRONIX (TRX) and TRC Tokens

  • TRONIX (TRX):

    • The native cryptocurrency of the Tron project.
    • Plays a key role in facilitating exchanges and interactions on the blockchain.
    • Highlights: Fast transactions (as quick as 3 seconds), minimal fees, and a consensus mechanism based on Delegated Proof-of-Stake (DPoS) (no mining required).

  • TRC Tokens:
    Tron supports multiple token standards that expand its ecosystem capabilities:

    TRC-10:

    • Simpler Standard: Created at the blockchain level (not via smart contracts).
    • Cost-Effective: Lower transaction commissions compared to TRC-20.
    • Use Cases: ICOs, blockchain-based products, and decentralized app payments.
    • Easy Creation: Any Tron account with a minimum balance can create TRC-10 tokens.
    • Key Benefits: Fast, scalable, and lower transaction costs.

    TRC-20:

    • Advanced Standard: Built for deploying smart contracts on the Tron blockchain.
    • Interoperable: Compatible with the Tron Virtual Machine (TVM) and similar to Ethereum's ERC-20.
    • Popular Among Developers: Favoured for creating digital tokens and dApps due to low fees and high processing speeds.

    TRC-721:

    • NFT Standard: Designed for the issuance of unique non-fungible tokens.
    • Unique Attributes: Each token is identifiable with a unique identifier ensuring immutability and uniqueness.

    TRC-1155:

    • Versatile Standard: Supports the creation of both fungible and non-fungible tokens.
    • Efficient Management: Enables the exchange of multiple token types within a single smart contract, expanding asset trading possibilities.

# Notable TRC-20 Tokens in the Tron Ecosystem

Below are a few key TRC-20 tokens that significantly contribute to Tron’s ecosystem:

  • USDT (TRON Tether):

    • A stablecoin pegged 1:1 to the US dollar.
    • Offers stability and low transaction fees, ideal for traders.

  • BitTorrent (BTT):

    • Powers the BitTorrent ecosystem.
    • Incentivizes sharing of bandwidth and resources for improved network performance.

  • WINkLink (WIN):

    • Native token of WINkLink, a decentralized oracle network.
    • Ensures reliable data feeds for smart contract execution.

  • JUST (JST):

    • Governance token for the JUST decentralized financial system (DeFi).
    • Used for interest payments and voting on network decisions.

  • Sun (SUN):

    • A governance token aimed at expanding DeFi on Tron.
    • Enables participation in decision-making processes for the SUN.io platform.

# Development and Future of Token Standards

Tron continues to expand its capabilities by developing new token standards, including:

  • NFT Enhancements (TRC-721):
    • Creating unique digital assets for art, gaming, and intellectual property.
  • Multi-Standard Support (TRC-1155):
    • Streamlining the management and exchange of different token types within a single smart contract.

These standards offer vast opportunities for developers building blockchain applications and provide robust security and interoperability for token transactions.

Final Highlights:

  • TRON’s native TRX is central to the ecosystem, powering transactions, governance, and staking.
  • Versatile token standards (TRC-10, TRC-20, TRC-721, TRC-1155) cater to a wide range of applications.
  • Low fees, fast processing, and democratic governance make Tron a leader in blockchain technology.
  • The ongoing development of token standards promises even greater opportunities for innovation and expansion.

Stay tuned for further articles as we continue to explore the dynamic world of Tron tokens and the evolving ecosystem that makes Tron one of the most influential blockchain platforms today.

← What Is TRX? →