I’ve been thinking about a question recently: why do the same tokens have different standards on different blockchains? For example, if I want to transfer USDT, it uses the ERC standard on Ethereum, but when it gets to Tron, it becomes the TRC standard—there’s a huge difference in cost.

In fact, the logic behind this is pretty simple. Each blockchain needs a set of rules to govern the creation, issuance, and management of tokens, just like every country has its own laws. Token standards are exactly that set of rules: they define how tokens are transferred, how balances are queried, and how they are traded. These standards aren’t only technical specifications—they directly affect transaction costs, speed, and user experience.

As for the ERC standard, that’s the foundation for tokens on Ethereum. In the early days, almost all mainstream projects issued ERC-20 tokens on Ethereum because Ethereum was the first public chain to support smart contracts. ERC stands for “Ethereum Request for Comments.” It sounds very formal, but in essence it’s a universal set of rules that allows developers to create tokens quickly while ensuring that all ERC-20 tokens can interact seamlessly on Ethereum. Token supply, transfers, and balance queries are all standardized.

However, Ethereum has a fatal problem: it’s expensive. Gas fees are absurdly high, especially during bull markets. So later on, many alternatives emerged. One of them is a Smart Chain launched by a major exchange, adopting the BEP-20 standard. BEP-20 is basically a copy of ERC-20: it inherits all the features, but runs on a separate blockchain, with faster transaction speeds and lower costs. Because it’s compatible with Ethereum, many ERC tokens can be migrated to BEP-20 easily.

Then there’s the TRC standard on Tron. From the beginning, Tron (TRON) positioned itself as an “efficient alternative to Ethereum,” using Delegated Proof of Stake consensus mechanism instead of Proof of Stake, which makes its transaction speed and costs better than Ethereum’s. TRC-20 tokens have functions similar to ERC-20, but they run extremely fast within the Tron ecosystem. I’ve noticed that many stablecoin projects issue on TRC because users particularly value fast transactions and low costs.

These three standards each have their own advantages. ERC is the most mature and widely supported standard, with the most complete ecosystem. BEP-20 strikes a balance between speed and cost. TRC is the lowest-cost and fastest option. When choosing which standard to issue tokens with, the development team needs to consider multiple factors such as target users, transaction volume, and ecosystem support.

Understanding these standards is truly important for participating in the crypto market. The same token performs completely differently across different chains, and the differences in transaction costs are enormous. When I transfer stablecoins now, I prioritize TRC because the cost really is just a fraction. As various public chains continue to develop, these standards keep evolving as well, and more innovative solutions may appear in the future.