Blockchain-savvy investors recognize the importance of understanding token standards, which have evolved significantly since their inception in 2017. These protocols provide a framework for developers to innovate while maintaining interoperability within network ecosystems. Today, specialized token standards cater to diverse needs—offering enhanced functionality without compromising security or performance. Here are the ten most influential token standards, presented in no particular order.
Why Token Standards Matter
Token standards save developers time and resources by eliminating the need to reinvent solutions for standardized features. This allows them to focus on innovation rather than redefining existing processes. As the backbone of decentralized markets, these standards:
- Boost liquidity and interoperability
- Enhance security
- Streamline development
With more options available than ever, token standards continue to shape the future of blockchain technology.
1. ERC-20
The ERC-20 standard revolutionized token creation by introducing a unified structure for Ethereum-based assets. Initially designed for internal use, its public release fueled the 2017 ICO boom and remains the most widely adopted standard today.
Key Features:
- Compatible with Ethereum DEXs and DeFi platforms
- Supports crowdfunding and utility tokens
- Thousands of ERC-20 tokens in circulation
👉 Explore ERC-20 token projects
2. Algorand Standard Assets (ASA)
ASA tokens leverage Algorand’s Layer-1 blockchain, offering full tokenization with minimal fees. Designed for enterprises, they include:
- Role-Based Asset Control (RBAC) for regulatory compliance
- Mediator systems for dispute resolution
- Support for fungible and non-fungible assets
3. TRC-20
TRON’s TRC-20 standard mirrors ERC-20 functionality but operates on the TRON Virtual Machine (TVM). Advantages include:
- Lower gas fees than Ethereum
- Mandatory supply/transfer standards for consistency
- High compatibility with ERC-20 platforms
4. NEP5
NEO’s NEP5 standard powers its "smart economy" with features like:
- Restricted and security tokens
- Multi-layered smart contracts
- Strong adoption in digital identity sectors
5. XRC-20
XDC Network’s XRC-20 excels in regulated markets due to:
- ISO 20022 compatibility
- Support for NFTs and security tokens
- Ultra-low transaction fees
6. dGoods
EOS.IO’s dGoods standard enables:
- Hierarchical NFT structures
- Sub-token creation
- Cross-platform metadata management
7. ERC-6551
An upgrade to ERC-721, this standard allows NFTs to:
- Function as digital wallets
- Host other tokens/collectibles
- Ideal for gaming avatars and dynamic NFTs
8. BRC-20
Bitcoin’s experimental token standard uses Ordinal Theory to inscribe data on satoshis. Note:
- No smart contracts required
- May increase network congestion
- Over 10 million inscriptions since 2023
9. BRC-721E
Converts ERC-721 NFTs to Bitcoin-ordinal assets via:
- One-way burning process
- Metadata stored off-chain
- Created by Ordinals Market
10. SPL
Solana’s Program Library standard supports:
- NFTs and security tokens
- Full ecosystem interoperability
- High flexibility for developers
FAQs
Q: Which token standard is best for DeFi?
A: ERC-20 remains the top choice for Ethereum-based DeFi, while SPL dominates Solana projects.
Q: Can BRC-20 tokens be traded on DEXs?
A: Currently, they lack DeFi integration and rely on ordinal marketplaces.
Q: How does ERC-6551 improve NFTs?
A: It enables NFTs to hold assets like wallets, unlocking new use cases for gaming and collectibles.
👉 Discover more blockchain innovations
Token standards are the building blocks of Web3—each addressing unique needs while driving interoperability forward.