The world is busy in the run to develop the next generation technologies and tech solutions based on the next-gen web, which is WEB 3.0. Blockchain technology will be the underlying solution for such advanced transformation towards user data safety. However, the financial sectors are also adopting changes and new technologies. As a result, DeFi environments are created. So, entrepreneurs are also advised to plan for startups based on futuristic technologies like decentralized platforms, apps, exchanges, and others. Such businesses should facilitate the users/ customers with flexible and confident payment solutions. Crypto token development will help the entrepreneurs to do that. Here, you can explore how tokens are benefited and developed.
Know the Differences Between Crypto Coins- Altcoins- Crypto Tokens
Usually, these three terms were causing confusion and dilemma for the users to find the differences and choose the one they want. Many people thought these are different terms to denote cryptocurrency, but it’s not.
Crypto tokens are fungible and tradable assets that are built on the blockchain of another cryptocurrency. Simply, the term ‘Token’ denotes the cryptocurrency which is built on another cryptocurrency’s blockchain. As the crypto tokens are upsurging in today’s market, many startups develop and use crypto tokens for crowdfunding to raise funds.
That means, it can be created by underlying existing blockchain technology and distributed through such startup platforms; meanwhile, the crypto coins are native assets of blockchain technology. It also facilitates the transactions for the users. The primary use case of crypto coins is governance trade-related processes, stablecoins to stabilize the volatility of crypto trading, etc.
The altcoins differ between these two types. The term exactly points out the cryptocurrencies other than Bitcoin. In some particular cases, the currencies other than Bitcoin and Ethereum are denoted as Altcoins. This is because these two are the unique currencies that have been sustained in the market from the beginning of the cryptocurrency era. Other currencies are forked from one of these two.
However, these altcoins differ from the tokens as they have their own blockchain. Entrepreneurs who are willing to start a business related to the crypto market are planning to develop an altcoin with its blockchain. But the fact is it needs more effort and costs. That’s why startups are invading the crypto token development services. By developing a token for your business, you can eliminate additional costs, time, and risks in developing a blockchain.
Common Types of Crypto Tokens
When you decide to develop a crypto token for your startup, you need to explore its types. Usually, it has been classified into four types. They are,
- Platform Tokens – These kinds of tokens using blockchain technology to provide and ensure decentralized applications (dapps) for diverse utilization.
- Security Tokens – Usually, this type of token is used to cross the obstacles due to rising regulatory issues from authorities or entities. Straight investment can be done on security tokens, this is one of the major reasons that they are established. These kinds of tokens represent the legal ownership of digital assets.
- Transactional Tokens – By focusing on easing the transaction, these kinds of tokens are developed. So, it can be traded for goods and services, and offer additional advantages by acting like traditional currencies in some cases.
- Utility Tokens – Usually these kinds of tokens are used for fund development and purchase. It is incorporated into the blockchain and utilized to access the advantages of the blockchain protocol. These tokens are not considered for investments; instead, they can grow in value and be popular if the demand for the token increases.
However, to develop such tokens, there is a set of rules that defines the workflow of a token and provides conditions and functions. In simple words, these standards are app-level specifications that are named based on the blockchain on which it has been developed. For example, ERC 20 is one of the most commonly known crypto token standards which use Ethereum blockchain. Now let’s get to know more about it.
Dive Deep into Top Three Token Standards in Current Trend
There is a huge number of token standards in the market which helps the entrepreneurs to get their token to facilitate their customers’ multiple services related to the cryptocurrency. For example, ERC-20, ERC-223, ERC-667, ERC-721, and all others. But in common, BEP20, ERC20, and TRON TOKEN are the three top most wanted standards taken in real-time. Let’s understand this better.
ERC20 Token Standard:
It can be known as Ethereum Request for Comment which was implemented in the year 2015. Simply, the ERC 20 defines the standards and conditions for the fungible token. That means, it can be traded and exchanged. It allows the transfer of tokens between accounts, getting the balance of the current token, supply of the token, and spending with a third-party account.
It can be deployed simply and easily; This token standard is also used to get the significant solution to solve the common problems in the blockchain-based marketplace, wallets, and others. It can be launched as smart contracts and utilized on the Ethereum Virtual Machine (EVM) like other tokens.
Despite having numerous benefits, it is also easy to develop and integrate with your business. That makes your business faster, simpler, and more productive. Examples of the currencies that use the ERC 20 standards are MKR, BAT, REP, etc.
BEP20 Token Standard:
Binance Smart Chain Evolution Proposal is known as BEP20 which is based on the Binance Smart Chain platform from Binance. It may be confused with the BEP 2 token standards as it has more similarities like total supply function, “balance of” function, name, symbol, decimal, and others.
The main difference between the BEP 2 and BEP 20 token standards is the underlying blockchain solution. BEP 2 denotes the standards for the Binance Chain tokens, not Binance Smart Chain (BSC). BSC is nothing but a blockchain solution to run smart contracts. However, both are compatible.
It is more similar to the ERC 20 standards and has some extended options. For instance, the BEP 20 standards support the development of tokens with the “getOwner” function. Many types of tokens like utility tokens, stablecoins, Peggy coins, and others can be built with BEP 20 standards. It supports parameters like mint, burns, blacklist, and others.
TRON Token Standard:
Like Ethereum, TRON is also a blockchain-based operator which can also be used to create decentralized apps and other solutions. Initially, the TRON was based on Ethereum, and in 2018, it comes with its own network. It is secured with Proof-of-Stake which is a consensus mechanism. The TRON standard allows the users to develop and distribute tokens on the TRON blockchain.
In the current market, TRC 10 and TRC 20 are the famous types of token standards from TRON. The simple difference between both is technical standards. TRC 10 is backed by the native TRON blockchain. While the TRC 20 is powered by the TRON Virtual Machine (TVM) that supports smart contracts. The TRC 20 is more similar to the ERC 20 standards.
Comparing TRC 10 and TRC 20, the TRC 20 has more ability to implement additional logic to ensure endless feasible smart contracts. The tokens that are made through TRON standards can be used to store, manage and transfer crypto values.
Simply, ERC 20, BEP 20, and TRC 20/10 seems the same, there is a unique quality that differs the token built on it distinctively. So, if you are looking for crypto token development services, to develop a token, you should choose a top-rated firm that can create tokens with its unique qualities.
In this situation, you can consider Crypto Ape as a crypto token development company where they can process more than 1300 transactions per second. As we are using up-to-date tech solutions to develop your tokens with it’s high-level compatibility for your business model.
By having a crypto token, you can provide anonymity and instant cost-effective secured globalized transactions to your customers in your network.
Tokenization can provide a high level of convenience when it comes to liquidity. It allows the users to unlock their crypto accounts, sell, exchange, or hold them in other stores. So, the demand for tokens is increasing in the market. As an entrepreneur, you have a lot of ideas to monetize high-demanding features. So, by having tokens for your business with dApp, website, or any others you can attract more customers/users through which you can increase the monetizing factor.
However, you need to choose which type of token you need to include in your decentralized business model and the standard under which it should be developed with. Since there is no requirement for creating a new blockchain flow, crypto token development will be the best solution that can produce a reliable solution in on-time.
Especially, when you choose the best crypto token development company like CryptoApe, you need not worry about the outcome that must be the best of its kind in the market. It can be assured as we have a well-knowledged expert team and cutting-edge token developing practices.