In the virtual currency and blockchain ecosystem, “Token Standard” is the core rule that ensures interoperability between different tokens, platforms, and tools. Just as the “unified USB interface specification” allows mobile phones, computers, and power banks to be compatible with each other in the real world, token standards define unified technical parameters and interaction logic. This enables tokens, wallets, and exchanges developed by different teams to collaborate seamlessly without additional adaptation—making token standards the “infrastructure” for the large-scale development of the blockchain ecosystem.

1. Core Definition of Token Standards: What Are “Rules Ensuring Compatibility”?

Simply put, a token standard is a “token development manual” formulated by a blockchain network (such as Ethereum or Tron). It clearly specifies the functions, data formats, and interaction methods that a token must include. For example:

It defines the code logic for basic operations such as “how to query token balances,” “how to transfer tokens,” and “how to record token transfer history”;
It also standardizes display rules like the token’s name, symbol (e.g., the symbol for USDT is “USDT”), and decimal places (most tokens retain 6 decimal places);
All tokens following the same standard—regardless of which project developed them—can be recognized and processed by wallets (e.g., MetaMask) and exchanges (e.g., Binance) that support that standard. This eliminates compatibility issues like “wallets failing to read tokens” or “exchanges being unable to receive tokens.”

2. Three Core Roles of Token Standards: Why Are Unified Rules Necessary?

For ordinary users, project teams, and the blockchain ecosystem, the value of token standards is mainly reflected in three aspects:

Lowering the User Threshold: Users do not need to distinguish between the technical differences of “Token A” and “Token B.” As long as they know the standard it follows (e.g., ERC-20), they can store it in a wallet that supports the standard and trade it on compliant exchanges. For instance, both USDT and UNI (which follow the ERC-20 standard) can be managed via the MetaMask wallet;
Reducing Project Development Costs: When developing new tokens, project teams do not need to design technical logic from scratch—they only need to “fill in the blanks according to the standard.” Projects following the ERC-20 standard do not need to develop additional “wallet adaptation functions,” as mainstream wallets already support this standard by default, significantly shortening the development cycle;
Ensuring Ecosystem Collaboration Efficiency: Without unified standards, exchanges would need to develop separate docking interfaces for each new token, and wallets would need to adapt to the reading logic of each token individually—resulting in extremely low efficiency. Token standards make “one-time adaptation for all tokens of the same standard” possible, driving the rapid expansion of the blockchain ecosystem.

3. Four Mainstream Global Token Standards: Application Scenarios and Features

Currently, the most common token standards in the market are concentrated on several major blockchain networks, with different standards catering to different application needs:

ERC-20 (Ethereum): The most universal “fungible token standard,” suitable for interchangeable, divisible tokens like Bitcoin, USDT, and UNI. It boasts strong compatibility—over 90% of centralized exchanges and wallets worldwide support it, making it the standard most frequently encountered by novice users;
ERC-721 (Ethereum): A standard specifically designed for NFTs (Non-Fungible Tokens), applicable to unique, non-interchangeable digital collectibles like CryptoPunks and BAYC. Each ERC-721 token has a unique ID and cannot be split or replaced with other tokens;
TRC-20 (Tron): A “fungible token standard” for the Tron network. Similar in function to ERC-20, it offers faster transaction speeds and lower fees, making it ideal for high-frequency, small-value transfer scenarios (e.g., daily payments). The TRC-20 version of USDT is popular among many users due to its low fees;
BEP-20 (Binance Smart Chain): A standard launched by Binance Smart Chain. It is compatible with the core functions of ERC-20 while supporting unique features of the Binance ecosystem (e.g., staking for mining). It balances compatibility and ecosystem adaptation, making it suitable for projects needing integration with the Binance ecosystem.

4. The Value of Token Standards for Different Stakeholders: How Users and Projects Benefit

For Ordinary Users: Choosing tokens that follow mainstream standards avoids the risk of “unrecoverable assets.” For example, if ERC-20 USDT is mistakenly transferred to an address that only supports TRC-20, the assets may be lost. In contrast, tokens following mainstream standards receive compatible support from almost all compliant platforms;
For Project Teams: Following mainstream standards provides quick access to ecosystem resources. For example, when an ERC-20 token applies to be listed on an exchange, the exchange does not need to develop additional interfaces, leading to a shorter review cycle. Additionally, such tokens are more easily accepted by users, as users are already familiar with mainstream standards like “ERC-20”;
For Developers: Standardization enables code reusability. Developers can use open-source ERC-20 code templates to develop new tokens without rewriting basic functions. They can also easily call interfaces of other DApps (Decentralized Applications) that support the same standard.

5. Three Key Considerations for Understanding Token Standards

Standards Across Different Chains Are Not Interoperable: ERC-20 (Ethereum) and TRC-20 (Tron) are standards for different chains. Even for the same token (e.g., USDT), versions following different standards cannot be directly transferred across chains. Always confirm the standard corresponding to the address before transferring;
Beware of “Pseudo-Standard” Projects: Some niche projects create “exclusive token standards,” claiming to be “more powerful.” However, such tokens may not be supported by mainstream wallets or exchanges, leaving users at risk of “being unable to cash out.” Prioritize projects following mainstream standards like ERC-20 and TRC-20;
Pay Attention to Standard Upgrades and Iterations: As blockchain technology evolves, some standards are upgraded (e.g., ERC-4626, an upgraded version of ERC-20). Upgrades may add new features (e.g., supporting automatic compound interest). Users should follow project announcements to understand whether tokens will be upgraded and the operational considerations after the upgrade.

6. Conclusion: Token Standards Are the “Universal Language” of the Blockchain Ecosystem

While token standards may seem like technical rules, they are closely tied to every user’s asset security and user experience. For ordinary users, understanding the features and application scenarios of mainstream token standards helps avoid compatibility risks when selecting tokens or conducting transfers. For the entire blockchain ecosystem, unified token standards are the foundation for achieving “cross-platform and cross-application collaboration” and the key support for driving virtual currency from a “niche technology” to “widespread application.” Rationally understanding token standards is an important step toward comprehending the blockchain ecosystem.

Token Standard: Rules for tokens to ensure compatibility