What is TRC-20?

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What is TRC-20?
TRC-20 is a token standard developed on the Tron blockchain that operates through smart contracts. In response to the question “What is TRC-20?”, this structure enables the secure transfer and management of tokens created within the Tron ecosystem. TRC-20 is not limited solely to the Tron network; it is also a widely supported standard adopted by various crypto projects.

What is TRC-20?

TRC-20 is a token standard developed on the TRON blockchain that operates through smart contracts and defines a set of rules for crypto assets.
Simply put, it is a mandatory protocol that developers must follow to create their own digital currency (token) on the TRON network, ensuring that the token is recognized by all wallets, exchanges, and applications within the ecosystem. This standard provides the technical framework necessary for the secure transfer of tokens and high compatibility within the TRON ecosystem.

What is the TRON Network?

The TRON network is a blockchain-based operating system with high transaction speed that enables the development and execution of decentralized applications (DApps). The TRON project first began development in 2014, and under the leadership of Justin Sun, the TRON Foundation was established in Singapore in 2017. The network’s foundation, known as the Genesis Block, was created on June 25, 2018, marking the official launch of TRON.

How Does TRC-20 Work?

TRC-20 operates through smart contracts running on the TRON blockchain, allowing for the creation, transfer, and management of tokens. All these processes are executed automatically by smart contracts defined through code. The structure is designed similarly to Ethereum’s ERC-20 standard, enabling token transfers, balance viewing, and total supply control without the need for a central authority.
The TRON network provides a high-speed and low-cost infrastructure to support these operations. When users transfer TRC-20 tokens, they pay network fees (gas fees) using TRON’s native cryptocurrency, TRX. Transactions are completed within seconds, offering a significant advantage, especially for micro-payments.Developers can create new tokens within the TRON ecosystem by following the TRC-20 standard, list them on exchanges, or integrate them into decentralized applications (DApps).

What Are the Differences Between TRC-20 and ERC-20?

trc20 and erc20

TRC-20
Operates on the Tron blockchain
Operates on the Ethereum network
Commonly used for USDT (Tether) transfers on exchanges
Used widely across DeFi, NFT, and DApp ecosystems
 
Works with wallets connected to the Tron network
Compatible with Ethereum-based wallets
Has a higher transaction speed
Has a slower transaction speed

Technical Features of the TRC-20 Token Standard

TRC-20 is an official protocol developed on the TRON blockchain that defines the fundamental set of rules for creating and managing cryptographic tokens. Structurally, it shows a strong resemblance to Ethereum’s industry-standard ERC-20, but it leverages the advantages of TRON’s Delegated Proof-of-Stake (DPoS) mechanism, offering high transaction throughput (TPS) and low costs.
When this standard is applied to any smart contract on the TRON network, the contract must include a mandatory set of API functions and events that can be accessed and understood by external applications and other contracts.

Use Cases of TRC-20 Tokens

Tokens built on the TRC-20 standard offer a wide range of applications across different sectors. They can be used for in-game payments within gaming ecosystems, for developing automated payment solutions in digital services, or for creating reward and point systems on social media platforms.
Additionally, TRC-20 tokens are among the most preferred structures in ICO (Initial Coin Offering) processes. This allows entrepreneurs to raise funds for their projects by selling tokens to their communities. Thanks to its flexible infrastructure, TRC-20 has become a standard that can be easily integrated into various business models — from finance to entertainment — providing an adaptable and efficient solution for both developers and investors.

Advantages of TRC-20 Tokens

trc20

TRC-20 tokens offer several technical and economic advantages compared to Ethereum-based ERC-20 tokens. The most notable difference is the TRON network’s low transaction fees and high processing speed. With the ability to handle thousands of transactions per second at minimal cost, the TRON blockchain provides an ideal infrastructure for projects with high transaction volumes.
Furthermore, the TRON ecosystem’s large user base and active developer community enable faster adoption and global expansion of TRC-20 tokens. This accessibility and efficiency make TRC-20 a competitive and sustainable digital asset standard across various domains, including DeFi, gaming, NFTs, and payment systems.

TRC-20 Token Creation Process

Creating a TRC-20 token is carried out through smart contracts operating on the TRON blockchain. In this process, developers first write, test, and deploy the smart contract to the TRON network using programming languages such as Solidity. Anyone wishing to create a token must have a wallet on the TRON blockchain and hold enough TRX (TRON’s native cryptocurrency) to cover the transaction fees.
The prepared smart contract must include functions that comply with the TRC-20 standard. This ensures that the created token operates fully compatibly within the TRON ecosystem and can be easily supported by wallets and exchanges.

What is the TRC-20 Token Standard?

TRC-20 is a technical standard used for smart contract-based tokens created on the TRON blockchain. The structure is designed similarly to Ethereum’s ERC-20 standard and supports basic operations such as transferring tokens, checking balances, and viewing total supply.
Thanks to the TRC-20 standard, developers can create tokens that are fully compatible with the TRON ecosystem and integrate them with other applications, wallets, and services. Moreover, since it operates on the TRON network — known for its high speed and low transaction fees, TRC-20 tokens provide an efficient, scalable, and cost-effective digital asset infrastructure.

FAQ

What is the Purpose of the TRC-20 Network?

The TRC-20 network is used to create and transfer tokens on the TRON blockchain. Through this standard, developers can generate digital assets (tokens) tailored to their own projects. Thanks to fast transaction confirmations and low transfer fees, the TRC-20 network allows users to carry out their transactions efficiently and cost-effectively.

What is the TRON Network?

TRON is a blockchain-based platform founded by Justin Sun in 2017. The network enables the development of decentralized applications ( DApps) and offers high speed with low transaction costs. Developers can create TRC-10 and TRC-20 tokens on TRON to bring their projects to life.
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The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.
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