Introduction
The first blockchain to support smart contracts was Ethereum, launched in 2015. However, the explosive growth of smart contracts occurred in 2020 during the "DeFi summer." Soon after, Ethereum's scalability issues became apparent, leading to transaction delays and spikes in gas fees during peak demand. These limitations paved the way for competitors like TRON, which launched its mainnet in May 2018 with the TRC-20 token standard.
TRON shares many parallels with Ethereum. Like Ethereum, TRON uses a virtual machine—TRON Virtual Machine (TVM)—to execute smart contracts. TVM even supports the same programming language (Solidity) as Ethereum's EVM (Ethereum Virtual Machine), making TRON smart contracts fully compatible with Ethereum's. This design simplifies the migration of decentralized applications (dApps) from Ethereum to TRON.
👉 Discover how TRON's low fees compare to Ethereum
Why Developers Migrate to TRON
Developers benefit from migrating to TRON for several reasons:
- Higher Throughput: TRON handles more transactions per second than Ethereum, making it better for scaling dApps.
- Lower Fees: Complex smart contracts on Ethereum incur high gas fees. TRON’s negligible fees allow for more intricate code without burdening users.
- EVM Compatibility: Existing Ethereum dApps can be ported to TRON with minimal changes.
Key Functions of TRC-20 Smart Contracts
TRC-20 smart contracts define token behaviors such as transfers, issuance, and circulation within the TRON blockchain. Transaction fees are paid in TRX, TRON’s native cryptocurrency.
Core Features:
- Token Creation: Users can mint custom tokens on TRON.
- Token Burning: Programmable destruction of tokens to control supply.
- Freezing Assets: Halting transactions for specific contracts.
- Ownership Control: Developers can renounce contract ownership post-launch for decentralization.
TRC-20 vs. ERC-20 vs. BEP-20
All three standards derive from ERC-20, enabling token interoperability within their respective blockchains. Differences lie in their underlying networks:
| Parameter | TRON (TRC-20) | Ethereum (ERC-20) | BNB Chain (BEP-20) |
|---|---|---|---|
| Validators | 27 | 960,658 | 29 |
| Transaction Speed | 3 sec | 13 sec | 3 sec |
| Avg. Fee | $0.14 | $12 | $0.20 |
| Daily Txs | 7M | 1M | 4M |
| Active dApps | 10 | 229 | 161 |
👉 See why TRON dominates stablecoin transactions
Key Takeaways:
- TRON excels in speed and affordability, handling 50%+ of USDT transactions.
- Ethereum remains the leader in developer activity and decentralization.
- BNB Chain balances speed with a broader dApp ecosystem than TRON.
Pros and Cons of TRC-20
✅ Advantages
- Low-cost transactions.
- High scalability.
- EVM compatibility.
❌ Challenges
- Centralization (only 27 validators).
- Fewer dApps vs. Ethereum/BNB Chain.
- Regulatory scrutiny of founder Justin Sun.
Top 5 TRC-20 Tokens
- Tether (USDT)
- BitTorrent (BTT)
- JUST Network (JST)
- USDD (USDD)
- APENFT (NFT)
FAQ
Q: Is TRC-20 safer than ERC-20?
A: TRC-20 offers lower fees, but Ethereum’s decentralization makes it more secure for high-value transactions.
Q: Can I send TRC-20 tokens to an ERC-20 address?
A: No—always verify the network (TRON vs. Ethereum) before transferring tokens.
Q: Why does TRON have fewer dApps?
A: Ethereum’s first-mover advantage attracted more developers, though TRON is gaining traction in DeFi.
Conclusion
TRC-20 combines low fees, high speed, and Ethereum compatibility, making it ideal for micropayments and stablecoin transfers. While less decentralized than Ethereum, its efficiency ensures lasting relevance in crypto’s multi-chain future.