Tron’s TRC-20 Tokens – All You Need to Know (✅ Phemex Now Supports USDT TRC-20)

just like ethereum has its own technical erc20 token standard so do many other blockchains on tron tokens are programmed according to the trc20 token standard as a public blockchain anyone can issue their own trc20 token using the same basic set of rules and their token can interact with any of the other apps running on the tron platform hey this is josh from femex team before we start please click on the like button subscribe to our channel turn on alerts and share this video with your friends today we'll look at the similarities and differences between tron and ethereum to establish the role that trc20 tokens can play in the broader blockchain ecosystem we'll also examine the rules of the trc20 token standard and some of the apps including the biggest stablecoin usdt that are using tron to issue their [Music] tokens so let's start with tron versus ethereum there are many things ethereum and tron have in common but also some critical differences like ethereum tron uses a virtual machine known as the tron virtual machine or tvm as a kind of operating system for smart contracts running on the platform the tpm also uses the same solidity program language as ethereum therefore tokens and smart contracts issued on tron are fully compatible with ethereum which is an intentional design choice by the tron foundation aiming to make it easy for developers to port their existing apps and tokens into the tron ecosystem but you may be wondering why developers would bother porting to tron if tron and ethereum are so similar why not just stay with ethereum this is where the critical differences between tron and ethereum come into play ethereum uses the proof-of-work consensus model which is known for being relatively slow as traffic has increased on ethereum supply and demand laws have driven transaction fees higher in early february the average fee on ethereum surpassed 20 for the first time making it prohibitively expensive for lower value transactions in contrast tron uses the delegated proof of stake dpos consensus because there are only 27 validators who need to confirm transactions the network can handle farmer traffic with significantly lower fees therefore developers creating high volume apps such as gaming use tron because of the superior scalability and lower fees high volume isn't the only consideration tron's design also makes it a good choice for developers creating more elaborate smart contracts the more lines there are in an application smart contract code the more complex it becomes to execute and the more computational power it will use and then the fees will also be higher so on one hand ethereum encourages developers to be mindful of introducing any unnecessary complexity into their code by hitting complexity with higher fees and the low fees on tron give developers less incentive to write concise code on the other hand some apps will have complex code no matter how concisely they're written and tron's significantly lower fees give developers much more freedom to program elaborate smart contracts without worrying that high costs will render their apps unusable the delegated proof-of-stake consensus model has come under some criticism for being too centralized given the relatively small number of validators compared to the vast number of proof-of-work minors however the blockchain trilemma of scalability security and decentralization is a challenge as old as the technology itself therefore developers and users always have to prioritize what's most important to them when deciding which platform to use so now let's look at the rules of the trc20 token standard like the erc20 token standard trc20 tokens must adhere to a set of rules including mandatory and optional elements there are three optional rules and six mandatory rules the optional rules are token name refers to the full written name of the token like tether token ticker refers to the abbreviation used for the token like usdt and token precision is the minimum divisible unit of the token which can be up to 1 18th now for the mandatory rules total supply refers to the maximum number of tokens that can be issued on the tron platform balance of will return the token balance of the user's tron account transfer allows tokens to be moved from the smart contract to a user's account approve authorizes a third party such as another smart contract to transfer tokens transfer from allows a third party such as another smart contract to take tokens from a user account and to transfer them elsewhere allowance queries the remaining number of tokens that a third party can transfer so like ethereum a developer can program other rules into trc20 tokens if they want them to carry out specific tasks however the code lines i just mentioned are the minimum requirement for any smart contract to be classed as trc20 compliant let's look at some apps and projects that are using the trc20 token standard tether is perhaps the biggest and best known project using the trc20 token standard tron usdt is now more popular than ethereum usdt which shows that ethereum's high transaction fees are becoming a barrier for many users furthermore the decentralization argument becomes largely irrelevant when discussing tron usdt versus ethereum usdt because the idea of decentralization is based on the concept of trustlessness usdt users are required to trust tether as the company issuing ustt regardless of whether the transactions take place on ethereum or tron therefore it makes sense to take advantage of tron's lower fees and faster confirmation times when transacting in usdt revane is another project using trc20 tokens as part of its review platform revane operates a kind of blockchain-based version of trustpilot people who leave reviews can get rewards for the quality of their contributions which incentivize people to write useful and honest reports about their experiences just as a tron based variation on the maker die stablecoins users can stake their trx tokens into collateralized depth positions to generate a stable calling called usdj which is pegged to the value of the us dollar tron also has a vibrant ecosystem of games including mega kryptopoulos 3d blockchain cuties and many more so to wrap up trc 20 tokens offer all the same benefits as erc20 tokens however with ethereum frequently suffering from congestion resulting in high fees and poor user experience tron based tokens offer a convenient workaround that's becoming popular with many users particularly for those transacting with stablecoins femex is pleased to provide users with access to trc20 ustt tokens with fast confirmation and no fees providing more flexibility for stablecoin users if you don't have a femex account yet just click on the link in the description or scan the qr code on the screen create a femex account and you will get a 7 day free premium membership trial and other trading bonuses to learn more about femex and cryptocurrencies watch out the videos in the box on the left and if you're new to the crypto world have a look at the videos on the right for some of femex's user tutorials thanks for watching this video bye

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