Why are there different crypto token standards?

Crypto token standards provide a set of predefined rules and criteria dictating a token's operation on its respective blockchain. These standards ensure compatibility, outlining the processes of token creation, minting, deployment, and destruction.

Being a subset of smart contract standards, token guidelines are crucial for blockchains with smart contract capabilities, steering the creation and deployment of new tokens. These standards are vital for tracking token performance and efficiency, assuring their interoperability and integration with existing applications.

What are the main types of crypto token standards?

Different blockchains often introduce various token standards to standardize the functions and parameters of tokens on their platforms. The list of token types is constantly growing and evolving but here are the main four we will focus on:

Note: -20 denotes ‘regular’ crypto coins, -721 is the NFT standard, -1155 represents multiple asset classes and in the case of TRON, TRC-10 is a technical token standard.

What are the key differences?

Comparison Parameter ERC-20 BEP-20 TRC-20 SPL
Network Ethereum Blockchain Binance Smart Chain TRON Blockchain Solana Program Library
Consensus Mechanism Proof of Stake (PoS) Proof of stake authority (PoSA) Delegated Proof of Stake (DPoS) Proof of Stake (PoS)
Gas Fees Highest among all Lower as compared to others Lower than ERC-20 The lowest gas fees available
Block Verification Speed 15 seconds 3 seconds 3 seconds ~400 milliseconds
Security High Low Moderate High

Please continue reading if you’re looking for a deeper-dive into the token specifics and advantages and disadvantages for each.