A crypto token is a digital asset or unit of value managed on a blockchain. These tokens can represent various assets and have many uses in the blockchain ecosystem. Unlike coins such as Bitcoin or Ethereum, which are integral parts of a blockchain, crypto tokens need to be created on existing blockchain platforms and follow their rules and standards. Tokens like SHIB, USDT, USDC, and DAI can exist on different networks. For instance, you can find a USDT token on the Ethereum blockchain and another one on the Binance Smart Chain. Even though they share the same name, they are distinct. It's crucial to use the correct wallet address and network when sending or receiving these tokens.
ERC20 and BEP20 tokens are two well-known examples of token standards, each associated with a specific blockchain platform - Ethereum and Binance Smart Chain, respectively.
ERC20, or Ethereum Request for Comments 20, is a widely adopted token standard on the Ethereum blockchain. It was created by Ethereum developers and follows rules to ensure compatibility and interoperability with Ethereum-based smart contracts and applications.
BEP20 tokens, on the other hand, are specific to the Binance Smart Chain (BSC). The Binance Smart Chain is an alternative blockchain developed by Binance. BEP20 tokens function similarly to ERC20 tokens but within the Binance Smart Chain ecosystem.
Additionally, there are tokens with the same name built on the TRON network, known as TRC20 tokens. For example, there's a USDT token that operates on the TRON network as well.
Most importantly, when you're dealing with tokens (sending or exchanging) on Ethereum, BSC, TRON, or similar networks, you need to have the native currency of that particular blockchain to cover the network fees.
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