TT20: The Token Standard Behind ThunderCore’s Interoperability
Tags: Thundercore, Ethereum, Research, Token

In our previous blog posts, we introduced ThunderCore’s vision for empowering DeFi, how ThunderCore can support 75% of the crypto market cap to be interoperable, and explained how ThunderBridge is the core infrastructure component that powers the interoperability. In this post, we will introduce TT20, the token standard that enables ThunderCore-native tokens like TT-USDC, TT-WBTC and TT-ETH to be instantly compatible and convertible with USDC and WBTC on Ethereum bidirectionally.

What is TT20?

The TT20 token standard is the most widely known and most frequently used token standard on ThunderCore. The TT20 token standard defines a list of basic functions and events that help developers use standardized program functions which make these tokens transferable and usable. Transaction fees are paid through the native TT token.

What are the benefits of TT20 Tokens?

First of all, since TT20 Tokens are native to ThunderCore, that means all TT20 Token transfers are happening on the ThunderCore blockchain which enjoys the benefits of:

Cheap Transaction Fees

You can seamlessly transfer your TT20 Tokens(e.g. TT-USDC, TT-WBTC and TT-ETH) without the need of holding a large amount of TT in your wallet. Frequent Ethereum users will resonate how painful it is whenever you want to transfer WBTC or use WBTC in smart contracts on Ethereum: actions as simple as a plain transfer still require the users to first fund the wallet with a few US Dollars worth of ETH. And it’s very often the case that users will find that they have to get some ETH first to pay for gas fees before they can even initiate a transfer. Often times, gas fees are so prohibitive on Ethereum that small transactions are simply economically unviable.

Instant Confirmation Times

Gone are the days of waiting anxiously for your WBTC/USDC/ETH transactions to be approved on Etherscan, cancelling your stuck transactions, or trying to pay an even more gas fee just to speed up your transaction. TT20 Tokens like TT-WBTC, TT-USDC and TT-ETH enjoy the 1 second confirmation time enabled by ThunderCore’s leading consensus algorithm.

The above are benefits provided by the base layer ThunderCore blockchain. In addition, thanks to ThunderCore’s EVM compatibility, TT20 Tokens also enjoy the benefits from the booming ecosystem of DApps being developed on ThunderCore, TT20 Tokens can be used to

Earn passive income in DApps like TT Mining

For example, TT-USDT, which is one of the earliest TT20 Tokens on ThunderCore automatically earns mining rewards in TT Mining every second.

2. Trade on DEX(Decentralized Exchange) on ThunderCore like TTSwap

TT20 Tokens can be used to either trade for other tokens, or alternatively used in pairs to provide liquidity for others hence becoming a liquidity provider(LP) generating a passive income by earning transaction fees.

3. Act as in-game currencies for games built on ThunderCore

For instance, NICER is a platform token for the third-party game on ThunderCore.

4. Act as collateral in DeFi DApps on ThunderCore

As we see an increasing number of DeFi applications being launched on ThunderCore, TT20 Tokens can act as collateral assets that enable an endless amount of use cases.

5. Internal interoperability

As we see more and more TT20 tokens gradually get rolled out and become available to the end-users, we are ecstatic to see more and more DApps that can take advantage of the internal interoperability of TT20 tokens. By internal interoperability, it means tokens within the ThunderCore ecosystem can interact with each other and be used in the same DApp. This opens up countless new use cases: developers can create a contract that takes multiple tokens and users can choose to spend/receive the type of token to their hearts’ content, in addition to using the chain’s native token: Thunder Token(TT).

6. And many more…

What else? Is TT20 the only token standard on ThunderCore?

Great question! As we’ve mentioned, TT20 is actually only one of the many tokens standards on ThunderCore, but it is indeed the cornerstone for the other variants. Other token standards may contain their own unique functions. Most of them extend the basic functionalities of the TT20 standard. For instance, some of them might be defined as burnable/non-burnable; the token contracts for NFTs will define the NFT tokens as non-fungible and not divisible since each NFT is unique.

Takeaway

For regular users, you should be aware that there exist different token standards, and TT20 is the most prevalent token standard that allows your Ethereum USDC/WBTC/ETH to be compatible with their high-speed ThunderCore TT-USDC/TT-WBTC/TT-ETH counterpart through ThunderBridge. For developers, please stay tuned and visit our Developer Portal where you will find more detailed technical documentation on the token standards. Stay tuned!

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