There are many tokens or digital assets that use the existing token standard on the Mainnet. This is done to facilitate the application of tokens. However, these tokens must follow a list of rules defined by the network protocol.
The most famous example of a token standard from the Ethereum network is ERC-20. ERC stands for Comment, and the number twenty in ERC-20 serves as the identity of the proposal.
Did you know? There are many tokens that use this ERC-20 as their main network, some of which are:
- LINK, Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. Through a decentralized oracle network, Chainlink enables blockchains to securely interact with external data feeds, events, and payment methods, providing the critical off-chain information that complex smart contracts need to become the dominant form of digital agreements.
- MANA, Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that enables users to create, experience and monetize content and applications.
- SAND, The Sandbox is a blockchain-based virtual world that allows users to create, build, buy and sell digital assets in the form of games. By combining the power of a decentralized autonomous organization (DAO) and non-exchangeable tokens (NFT), Sandbox creates a decentralized platform for a thriving gaming community.
Of course, both the ERC-20 and BEP-20 standardization networks have their advantages and disadvantages.
In the ERC-20 network, although it has a number of advantages such as easy to use, flexible, widely accepted, and can remove fake tokens, the ERC-20 network also has several disadvantages, including: unstable, expensive transaction fees, and more transactions. slow.
In comparison, Binance Smart Chain uses the Proof-of-Staked-Authority method which offers BEP-20 transaction execution speeds, which are faster than ERC-20, and have lower transaction fees. The average transaction nominal on the BEP-20 is no more than a few cents. Meanwhile, the average ERC-20 transaction fee can reach around US$12.
However, although the BEP-20 token offers significantly lower nominal transaction fees and faster processing times, Binance Smart Chain’s PoSA validation model has in fact been criticized by some, due to potential security flaws.