Best Crypto Token Standards
People usually think building a Crypto Token is a complex process. But little did they know that the hardest part isn’t in the coding. It lies in picking the right crypto token standard.
ERC-20, BEP-20, TRC-20, and more…
We have numerous options. This list feels endless, and each tokens seem to be the “best fit” for your crypto token development. The irony? You could just use any of the top token standards to create tokens in minutes, but choosing the wrong standard would entirely let your process go in vain. That’s why in this guide, we’re diving deep into the list of top token standards to create your crypto tokens efficiently.
Let’s begin with understanding,
What are Token Standards? — A detailed analysis
The token standards are the set of rules and pre-defined conditions that determine the functionality of the crypto tokens. The tokens can be anything from digital currencies, collectibles, loyalty points, or even be used for governance rights. Token standards are important for the successful crypto tokens development. The tokens created with these standards dictate how the tokens function with storing, transferring, or trading seamlessly across the ecosystem.
Different blockchain and ecosystems have their own set of token standards. The most popular and widely used ones are ERC standards, which stand for Ethereum Request for Comment. Also, we have BEP standards for BNB chain, TRC for Tron, SPL for Solana, and many more.
We also have EIP standards, which stand for Ethereum Improvement Proposals. Unlike other standards, the ‘IP’ group is like a technical document that suggests a new feature or standard. Later, if the developer wants to continue, they move them into the ‘RC’ group, agreeing on the proposals.
Without these standards, developing a token would be impossible today. Now, let’s see what those top token standards we have to create functional Crypto Tokens.
Top 10 Token Standards to Create Your Own Crypto Tokens
When speaking about crypto token development, the choice of a token standard is a significant step. This will decide how your token will function, interact, and scale with the blockchain ecosystem. Each of these standards is built with a specific purpose.
They are designed to create fungible tokens like digital currencies, unique collectibles like NFTs, or advanced programmable assets. So, to help you better, here is a list of the 10 top token standards that have shaped the crypto industry and are most often used to build new tokens.
ERC 20
The ERC20 is the most widely used token standard built on top of Ethereum. This Ethereum Token Development will define how the fungible tokens behave, ensuring they can be transferred, stored, and tracked consistently. With functions like transfer, approve, and balanceOf, the ERC-20 tokens can be integrated seamlessly with wallets, decentralized exchanges, and DeFi protocols.
These ERC20 tokens are best for fungible tokensEvery token unit is identical and interchangeable.This can be broken and divisible into smaller decimal units.This lets users authorize third partiesWidely supported across wallets, DEXs, and DeFi protocols.
ERC 721
Unlike ERC20, this ERC 721 standard is known for its creation with Non-Fungible Tokens (NFTs). The tokens created with these standards have a distinct ID and metadata. That’s why every digital collectible, NFT art, or blockchain-based game item often relies on the ERC-721 standard.
The ERC 721 standards have a unique ID and metadataThese standards opened opportunities for NFT MarketplacesIndivisible in nature, which means they cannot be split into smaller units.The ownership history is transparent and verifiable on-chain.The ERC 721 standard has rich metadata support, which has attributes like images, traits, descriptions, and external links.
ERC 1155
The ERC 1155 standard combines the best of both ERC 20 and ERC 721 standards. With this token standard, the developers can issue multiple types of tokens, including fungible, non-fungible, and even semi-fungible tokens. This ERC 1155 is the best choice if you are looking for the most efficient standard for complex ecosystems.
This standard is ideal for gaming, metaverse projects, and marketplaces.This reduces transaction costs with batch operations.Simplifies contract management by handling multiple asset types.Batch transfer reduces and simplifies the multi-asset transfers.ERC 1155 standard is designed to support complex interactions and functionalities.
ERC 777
This ERC 777 token standard is the extended and enhanced version of ERC 20 tokens. This token standard has unique contracts like hooks and callbacks. They enable tokens to automatically trigger and react to incoming or outgoing transfers. These enable features like automatic notifications, logging, or DeFi automation.
Smoothens complex financial instruments and dApp interactions.Simplifies user experience by allowing operators to handle approvals.This offers improved security and flexibility.ERC 1155 can integrate easily with ERC20-supported wallets and applications.This enhances automation and reduces the need for manual approvals.
SPL
While ERCs dominate the Ethereum network, the SPL tokens are for the Solana blockchain. This stands for the Solana Program Library standard, which governs the token creation and management on the Solana. The Solana Token Development ensures you with fast, low-cost transactions, built to leverage Solana’s high throughput rates.
Supports Solana’s ecosystem of dApps, DeFi, and NFT projects.Compared to Ethereum, it charges extremely low transaction costs.The high scalability makes it attractive for large-scale applications.Supports the issuance of both fungible and non-fungible tokens.Transactions can be done smoothly with Solana’s TPS of 65k transactions per second.
BEP 20
BEP 20 is the Binance Smart Chain equivalent of the ERC 20 token standard. The BEP20 Token Development is designed to merge the Ethereum compatibility with Binance’s speed, scalability, and affordability, making it one of the most developer-friendly standards. Besides, every BEP 20 token is natively compatible with Binance’s centralized and Decentralized exchanges.
This standard is perfect for startups or enterprises looking for low entry barriers in token creation.The BEP20 can represent stablecoins, governance tokens, utility tokens, wrapped assets, or security tokens.BEP 20 can issue pegged tokens, making cross-chain asset movement easier.As Binance is the world’s largest exchange, BEP-20 tokens can instantly tap into deep liquidity pools and fast listing opportunities.
TRC 10
The TRC-10 is a native token standard on the Tron network. They don’t rely on smart contracts, which is what makes the entire transaction simpler, faster, and cheaper than most of the others. This is often used for crowdfunding, ICOs, and as utility tokens. The TRC-10 standard removes complexity from token creation, making tokenization accessible to everyone. This will work for even small businesses and startups, maintaining speed, transparency, and near-zero fees.
You can leverage Tron’s Delegated Proof of Stake system. This can handle 2000+ TPS, making it faster than most of the blockchain networks.This doesn’t require smart contracts, making it easy and quick to deploy.Fully supported on TronLink, Poloniex, and Tron-based dApps, ensuring quick adoption.Transaction fees are almost zero, making it perfect for microtransactions and high-volume transfers.Every TRC 10 token gets listed on Tron’s public blockchain explorer, increasing visibility and trust.
TRC 20
Just like ERC 20, the TRC 20 standard is designed to work on Tron’s Blockchain ecosystem. Also, tokens adhering to this TRC-20 standard are compatible with wallets and dapps within the Tron platform. This TRC 20 token standard supports functions like totalSupply, balanceOf, transfer, approve, and follows the footsteps of ERC 20 tokens.
This is best if you are looking for the compatibility of ERC 20 tokens, but with low fees.The TRC 20 token standard is ideal for payments, remittances, and stablecoin-focused products.Developers who are familiar with the ERC-20 standard can re-use patterns quickly on TRON with minimal friction, saving up efforts.TRON’s fast blocks and low fees make TRC-20 attractive for processing frequent micro-transactions.The TRC 20 token standard has one of the simplest smart contract ecosystems, allowing you to modify it based on your business requirements.
CIP-20
This is another unique and best standard for crypto token development. Operated on Cardano, this is a human-readable transaction message/metadata. Unlike other token standards, this CIP 20 will define how to attach readable information to Cardano transactions. In simple terms, every time you make a transaction on Cardano, you can attach a small note with it. CIP-20 makes sure that these notes follow a common format, so wallets and dApps can easily read and display them the same way.
Unlike Ethereum, Cardano allows tokens to be native to the blockchain. Which means, they don’t need smart contracts to exist.Transactions with CIP-20 tokens don’t require additional smart contract fees. This makes them cheaper and more efficient.These are built on Cardano’s extended UTXO model. This provides higher predictability and fewer attack vectors than Ethereum’s account model.These standards run on Cardano’s PoS model, which makes the token operation energy-efficient.
NEP 141
NEP-141 is the official fungible token standard on NEAR Protocol. This defines the contract interface, events, and behaviors so all the fungible tokens on the NEAR protocol work consistently across wallets, dApps, and exchanges. This standard makes it easy for indexers, explorers, and wallets to track supply changes, transfers, and burns.
The standard allows and eases token transfers from one user to another effortlessly.Every NEP-141 token contract has basic functionalities like returning the total circulating supply or the balance of a given account.Compared to Ethereum, the gas fee here is minimal. This makes them suited and best for processing micro transactions.NEAR’s Rainbow Bridge supports ERC-20 and NEP-141 conversions. This gives NEP-141 tokens real multi-chain utility.This has a simplified user experience and also includes human-readable account names, making tokens accessible to everyone.
The above list is some of the top Crypto token standards that you can consider when creating your crypto token. Now, with these many options, you might wonder….
How to Choose the Right Token Standard for Developing Crypto Tokens ?
Choosing the right token standard for developing your crypto token is essential for a successful outcome. This will ensure that the token aligns perfectly with your business model, technical needs, and future growth. Here is a list of some of the key factors to consider,
Analyze the Cost Requirements
Before fully going with crypto token development, look out for the budgetary requirements. Different token standards come with various transaction fees, deployment costs, and gas expenses. So, ensure that your chosen standard fits perfectly with your budgetary plan.
Real-world use case
Not every token standard suits every business purpose. Utility tokens, security tokens, NFTs, or stablecoins each have unique requirements and different standards. Match your token’s purpose with the right standard to maximize adoption and usability.
Blockchain Ecosystem
Your token’s success depends on the ecosystem it operates in. Choosing a blockchain with a robust ecosystem, active projects, and wide adoption gives better liquidity, interoperability, and visibility.
Developer & Community support
A strong developer community means reliable tools, updates, and quicker problem-solving skills. Look out for a community-focused ecosystem to guarantee long-term sustainability for your token.
Scalability & Speed
As the project grows further, you’ll need a token standard that supports high transaction throughput and low latency rates. So, it is essential to prioritize scalability if you want long-term benefits.
With all these diverse token standards playing in today’s crypto ecosystem, the big question is, where does the future lie, right?
Future of Crypto Token Standards
AI & IoT Integration
With AI and IoT integration, token standards could enable smart, automated asset management. These will enable tokens to self-automate actions based on real-time IoT data or AI-driven predictions.
Cross-Chain Token Standards
The crypto token standards in the future might support seamless interoperability across blockchain networks. This means the tokens could move freely between Ethereum, Solana, Polkadot, and more.
Real-World Asset Tokenization
As the regulations mature, the token standards will expand more into representing physical assets. Valuables like real estate, commodities, and stocks can be tokenized and bridge the gap between physical and digital worlds.
Enhanced Security Protocols
Upgraded token standards will integrate built-in compliance, fraud detection, and privacy features. This makes tokens secure, programmable, and instills trust among institutions and large-scale investors.
Wrap Up
In the fast-growing crypto world, choosing the right token standard is not just a technical decision. Each standard, whether it can be ERC, TRC, BEP, CIP, or NEP, brings its own set of strengths, functionalities, and ecosystem advantages. Selecting the one that aligns with your business goals, scalability needs, and target audience is important.
But with so many options, you might be left confused. That’s why partnering with a professional Crypto Token Development Company is important. A trusted development partner helps you identify the standard that best suits your project architecture.
A Complete Guide to the Top Token Standards for Crypto Token Development was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.