Token Standards are the protocols and rules that determine how tokens will function on blockchains. There are different blockchains. own The token standard is a way to guarantee interoperability. security and efficiency. The top 10 blockchains have some key standards for tokens. Turing complete environments Ethereum, Solana BNB XRP
Ethereum Token Standards
Ethereum To facilitate the management and creation of digital assets, many standards have been developed. The standards are designed to ensure tokens can be interoperable across the Ethereum ecosystem.
- ERC-20ERC-20 is widely adopted for the creation of fungible Ethereum tokens. The tokens can be interchanged, which makes them ideal for utility tokens and staking tokens. ERC-20 Tokens are governed by a series of rules, including how to transfer tokens, approve transactions, and access token data.
- ERC-721The ERC-721 standard allows for the creation of unique, non-interchangeable tokens. ERC-721 is a standard that’s used in digital art, collectibles or other unique assets. Every token is uniquely identified, which makes it different from the other tokens.
- ERC-777ERC-777 allows for more complex transactions, like sending tokens and notifying a contract all in one single transaction. The ERC-777 standard also has features to enhance privacy and security. This addresses some ERC-20 limitations.
- ERC-1155The standard for multi-tokens allows the creation of fungible as well as non-fungible tokens in a single contract. ERC-1155 allows batch transfers which reduces transaction costs. The standard can be used for multiple-token applications.
- ERC-4626ERC-4626 is a standard for yield-bearing vaults. It optimizes the parameters and harmonizes them. This standard was designed to optimize the creation and administration of vaults that provide returns on assets deposited.
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DN-404: DN-404 “Divisible NFT-404,” This experimental standard has been designed to overcome the limitations of ERC-404, by increasing the efficiency, interoperability, and scalability of tokenized asset.. DN-404 uses a bifurcated The base ERC-20 Tokens represent fractions NFTs while the mirror ERC-721 tokens represent actual NFTs. This design improves transaction throughput while reducing costs and facilitating cross-chain transactions.
Solana Token Standards
SolanaThe.com website, which is known for its low-cost and high-speed transactions, now has its own website. own Set of Token Standards to Support its Growing Ecosystem of Decentralized Applications and Digital Assets
- SPL (Solana Program Library)SPL is the standard used to create fungible or non-fungible Solana Blockchain Tokens. SPL, unlike Ethereum which uses separate standards to define different token types, has a single standard where differences are determined at the time of the creation. It is through this standard that SPL tokens can be interoperable between Solana wallets, smart contracts and SPL.
- Token-2022Token-2022 is an enhancement of the SPL Standard. It introduces functionalities like interest-bearing tokens and improved transfer abilities. The standard is designed to give developers and users more advanced functionality and flexibility on the Solana Blockchain.
Token Standards BNB Binance Smart Chain
Binance Smart Chain’s (BSC) token standard is designed to help support the decentralized ecosystem. The standards have been designed to work with Ethereum ERC, which facilitates cross-chain interaction.
- BEP-2BEP-2 is the standard used by tokens that are part of the Binance Beacon Chain. This includes the BNB native coin, as well as other tokens available on Binance’s decentralized exchange. The Binance Chain supports BEP-2 Tokens that follow certain rules to make them easy to trade and manage. The Binance Chain is in the process currently of being created. sunset.
- BEP-20This standard can be used to create various types of tokens, including utility tokens, stablecoins and more. BEP-20 is a standard that allows the creation of various tokens including stablecoins and utility tokens. BEP-2 and BEP-20 can easily be swapped, allowing for flexibility within Binance’s ecosystem.
XRP Ledger Token Standards
It is important to note that the word “you” means “you”. XRP The Ledger is designed to facilitate fast cross-border payment. own Standard for managing and creating tokens
- The XRP currency is a cryptocurrency that can be used to buy and sell goods.XRP the native token is used to make payments, and also as a means of payment. XRP is not a standard token like ERC-20, but it’s integral to the XRP Ledger.
- XLS Ledger Standards (XRP)The XRP Ledger standards define the requirements and protocol for the creation and management of tokens. XLS Standards ensure interoperability, compatibility and diversity within the XRP Ecosystem. They facilitate the creation of a variety of types of Tokens.
The Differences
- Interoperability, EcosystemEthereum’s ERC Standards are very specialized with a vast ecosystem. They can therefore be used in many applications, but they often lead to increased gas and complexity costs. Solana’s SPL standards are more unified and offer lower transaction fees, faster settlement times. This is beneficial for high-throughput application. BNB’s BEP standard is designed to be compatible with Ethereum’s ERC, which facilitates cross-chain compatibility. XRP Ledger’s XLS Standards are designed to ensure interoperability in the XRP Ecosystem.
- Transaction costs and speedEthereum’s transaction fees are higher and its processing time is slower, particularly during times of network congestion. Solana has lower fees, and transactions are faster due to the unique consensus mechanisms. BNB Smart Chain offers lower transaction fees than Ethereum while XRP Ledger optimizes for quick and easy cross-border payment.
- Flexible Tokens TypesEthereum has a number of different token standards, which are suited to different scenarios. These include fungible and non-fungible fungibles tokens. Solana’s SPL standard integrates fungible- and nonfungible-token functionalities into a single protocol. BNB’s BEP-20 expands ERC-20 functionality while XRP Ledger’s XLS standard provides a framework to fungible as well as non-fungible Tokens.
The token standards play a vital role in their respective blockchain ecosystems. They enable the standardization and interoperability of creation, management and transfer digital assets.
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Source: cryptoslate.com