The Ethereum blockchain pioneered smart contract functionality when it launched in 2015. However, it wasn’t until the DeFi summer of 2020 that smart contracts saw explosive adoption. As Ethereum’s popularity surged, scalability issues became increasingly evident—network congestion led to transaction delays and volatile gas fees during peak usage. These limitations paved the way for alternative blockchains, one of which is TRON, introducing its own token standard: TRC-20.
In May 2018, the TRON mainnet officially launched with support for TRC-20 tokens. Designed with Ethereum as a reference, TRON adopted many similar technical foundations. Most notably, TRON operates its own TRON Virtual Machine (TVM), a runtime environment for executing smart contracts. Crucially, TVM supports Solidity, the same programming language used by Ethereum’s Ethereum Virtual Machine (EVM).
This architectural similarity ensures full compatibility between Ethereum and TRON smart contracts. Developers can easily port decentralized applications (dApps) from Ethereum to TRON with minimal code changes—a strategic move by TRON to attract Ethereum-based projects seeking faster and cheaper alternatives.
👉 Discover how blockchain interoperability is shaping the future of digital assets.
Why Migrate from Ethereum to TRON?
For developers and users alike, migrating to TRON offers compelling advantages:
- Higher throughput: TRON can process significantly more transactions per second than Ethereum, making it ideal for scalable dApps.
- Lower transaction costs: TRON’s average fee is a fraction of Ethereum’s, enabling complex smart contract logic without burdening end users.
- Greater flexibility: With minimal gas expenses, developers can build feature-rich applications without worrying about cost spikes due to code complexity.
On Ethereum, every additional line of smart contract code increases computational demand—and therefore transaction fees. In contrast, TRON’s low-cost environment empowers innovation while maintaining efficiency.
Key Features of TRC-20 Smart Contracts
TRC-20 defines the technical rules for fungible tokens on the TRON blockchain, governing functions like token transfer, issuance, and circulation. All transaction fees on TRON are paid in its native cryptocurrency, TRX.
Core functionalities of TRC-20 smart contracts include:
- Token creation: Anyone can issue custom digital assets on the TRON network.
- Token burning: Allows programmed destruction of circulating tokens under specific conditions.
- Freezing tokens: Enables suspension of all operations related to a particular smart contract.
- Ownership control: Lets token creators define permissions for interacting with the contract post-deployment. For greater decentralization, issuers can relinquish ownership rights after launch, ensuring no further modifications.
These features make TRC-20 a flexible and accessible standard for launching new projects in the decentralized ecosystem.
How Does TRC-20 Compare to ERC-20 and BEP-20?
The ERC-20 standard served as the blueprint for both TRC-20 and BEP-20 (used on BNB Chain). All three standards enable the creation and transfer of fungible tokens within their respective blockchains. While functionally similar at the application level, key differences arise from underlying network design.
Here's how they compare across critical metrics:
Network Performance & Decentralization
TRON stands out for its high transaction speed and ultra-low fees, making it a preferred choice for high-volume transactions. It consistently records over 7 million daily transactions, far surpassing Ethereum (~1 million) and BNB Chain (~4 million). This performance is largely driven by the widespread use of USDT (Tether) on the TRC-20 network.
In fact, according to DeFi Llama, over 50% of all circulating USDT exists on TRON, thanks to fast settlements and negligible costs—ideal for remittances, trading, and peer-to-peer payments.
However, TRON lags behind in developer activity. It hosts only around 10 dApps with over $100K in value locked, compared to 229 on Ethereum and 161 on BNB Chain. Additionally, TRON is the most centralized of the three: only 27 validators secure the network, versus nearly a million on Ethereum.
Despite this, TRON’s balance of speed, cost-efficiency, and EVM compatibility keeps it relevant in the evolving blockchain landscape.
👉 Learn how low-cost blockchain networks are transforming global finance.
Advantages of TRC-20 Tokens
- Full support for decentralized applications (dApps)
- Easy creation of new digital assets
- Flexible smart contract development environment
- Fast transaction processing (~3 seconds)
- Extremely low fees (average $0.14)
- Option for free transactions through bandwidth allocation (users can perform certain actions without paying fees by staking TRX)
Disadvantages of TRC-20 Tokens
- High degree of centralization (only 27 active validators)
- Limited dApp ecosystem compared to Ethereum and BNB Chain
- Regulatory scrutiny: In March 2023, the U.S. Securities and Exchange Commission (SEC) charged TRON’s founder, Justin Sun, and three affiliated companies with unregistered offering and sale of crypto assets
Top 5 TRC-20 Tokens
- Tether (USDT) – The most widely used stablecoin on TRON
- BitTorrent (BTT) – Powers decentralized file-sharing and content distribution
- JUST Network (JST) – Governance token for lending and stablecoin protocols
- USDD (USDD) – Algorithmic stablecoin backed by decentralized reserves
- APENFT (NFT) – Focused on digital art and NFT marketplace innovation
Popular dApps Supporting TRC-20
Leading decentralized applications by total value locked:
- JustLend – Lending and borrowing platform
- JustStable – Stablecoin yield aggregator
- SUN – Yield farming and staking hub
- UniFi – Cross-chain liquidity protocol
- SocialSwap – Decentralized exchange with social features
Best Non-Custodial Wallets for TRC-20
Secure your TRC-20 tokens using these trusted wallets:
- TronLink – Official wallet with browser extension and mobile app
- Trust Wallet – Multi-chain support with strong security
- Atomic Wallet – Open-source option with built-in exchange
- MathWallet – Supports multiple blockchains including TRON
- imToken – User-friendly interface with robust dApp integration
TRC-20 Block Explorers
Track transactions and verify token details using:
- Tronscan – Official explorer with real-time data
- Oklink – Multi-chain explorer with advanced analytics
- Bitquery – Developer-focused tool for querying blockchain data
FAQ: Frequently Asked Questions About TRC-20
Q: What is the main purpose of the TRC-20 standard?
A: TRC-20 defines the rules for creating and managing fungible tokens on the TRON blockchain, enabling developers to launch custom cryptocurrencies and integrate them into dApps.
Q: Can I send ERC-20 tokens directly to a TRC-20 address?
A: No. ERC-20 and TRC-20 are incompatible formats on different blockchains. Sending tokens to the wrong network may result in permanent loss. Always confirm the correct network before transferring.
Q: Why is USDT so popular on TRC-20?
A: Due to near-instant transactions and minimal fees (often under $1), TRC-20 has become the go-to network for USDT transfers, especially in emerging markets and trading communities.
Q: Are TRC-20 transactions really free?
A: Yes—users who stake TRX can earn bandwidth, allowing them to perform basic transactions like token transfers at no cost.
Q: Is TRON safe despite its centralization?
A: While centralization poses theoretical risks, TRON has maintained strong network uptime and security since 2018. However, users should be aware of reduced decentralization compared to proof-of-stake leaders like Ethereum.
Q: How do I receive TRC-20 tokens safely?
A: Always double-check that your wallet supports TRC-20 and ensure you're providing a valid TRON address (starting with 'T'). Never share private keys or seed phrases.
👉 Start exploring secure ways to manage your digital assets today.