The world of cryptocurrencies is certainly one of the most modern, cost-effective and fast alternatives today to manage and transfer assets with real value. What once seemed possible only through banks and their offices, today is possible thanks to cryptoassets and apps that allow us to manage them through our mobile devices and computers. However, even the most experts have problems, since we are talking about a very "young" service, with a little more than a decade among us. One of the questions that most concern users is "what is a token standard, also known as protocol or network, and what is its importance when transferring my cryptocurrencies?” On this occasion we are going to solve these questions to better understand how crypto works and avoid making mistakes that we may later regret.
What is a token standard?
To put it in simple terms, a token standard is a network based on a set of rules that define how a cryptocurrency token works. In other words, it is a model that standardizes its operation.
What are these standards for? Basically they allow the interoperability of all crypto products. As you well know, there are currently many, many cryptocurrencies, which are very different from each other, but which actually operate through the same networks, the same protocols. This means that when they are created, they must conform to the specifications of a particular model. Thanks to this, cryptocurrencies that operate within the same token standard can be exchanged for different ones.
Of course, platforms and apps must also conform to the same cryptocurrency token standard. In this case there are examples such as exchanges or wallets, which allow us to respectively exchange and store different cryptoassets on a single platform. In other words, without token standards, each cryptocurrency would require to create a special wallet and exchange just for itself, and no other crypto could be operated.
What token standards are in our Blackcatcard ecosystem?
Thanks to the offer made by our partner Manerio UAB through our Fintech ecosystem, our clients can find three of the most popular cryptocurrencies on the market: Bitcoin, Ethereum and USDT (also known as Tether US).
Manerio UAB offers our Blackcatcard users a specific token standard for the first two cryptocurrencies. For Bitcoin the BTC network is available, while for Ethereum there is ERC-20. On the other hand, for USDT - a crypto that has gained worldwide popularity for being a very reliable stablecoin, pegged to the price of the US dollar - there is even more flexibility, as two different standards, ERC-20 and TRC-20 (Tron), can be used. Did you notice? That's right, Ethereum and USDT can work through the same standard, that means they are interoperable with each other, a great advantage that users handling these two cryptocurrencies have.
Therefore, our platform handles several well-developed standards that facilitate the exchange of cryptoassets in a secure and reliable way. In addition, our clients will be able to use an intuitive and user-friendly interface, as it is designed to facilitate the sending and receiving of crypto, thus avoiding common errors that occur in other platforms.
Within our Blackcatcard platform the process to select a standard is simple, you know for sure which networks are available. However, if you carry out transactions with other wallets or external exchanges, be very careful! A mistake in the selection of a token standard can mean the total and irreversible loss of the assets sent. You must first verify that the standards that are available on other crypto platforms are the same ones we use in our Blackcatcard ecosystem, and of course select a specific one according to the cryptocurrency you plan to transfer, be it Bitcoin, Ethereum or USDT.
It happens that there are some networks that are compatible in certain characteristics, for example at the checking level, so when they are selected, they allow the transaction. However, as they are not the correct standards, the cryptocurrency is not sent to the necessary address and can get lost. If this happens, of course our support team can analyze the case and try to help you according to the conditions, but possibly there is no solution, as it would be an error made outside our Blackcatcard platform.
The advantage of our fintech ecosystem is that we handle multiple networks. For example, you can send or receive USDT with both ERC-20 and TRC-20 standard, while there are other crypto services that only use one of these two networks. On the other hand, the crypto service interface in our Blackcatcard ecosystem facilitates the transfer of cryptocurrencies, by other features as well. For example, when transferring crypto between Blakcatcard clients, the process is fast and simple in terms of user verification, as they are already verified by our system. However, in the case of a transfer between the blackcatcard fintech ecosystem and another crypto service, it is necessary to correctly indicate the full name of the sender and the receiver, in order to avoid additional inconveniences due to Anti-Money Laundering (AML) regulations. When you want to make a transaction of this type, our interface will clearly indicate what information you must enter for the transfer to be successful. In our blog you can find more information about the importance of indicating the real name during a crypto transfer.
Certainly, not all crypto products on the market have as much flexibility as those available in our Blackcatcard ecosystem. Many wallets and exchanges operate separately and with a more limited set of token standards. In contrast, our partner Manerio UAB offers our clients all-in-one crypto service, which includes crypto wallet and exchange to buy and sell cryptocurrencies, as well as being able to cash them out by offering the possibility to convert them to fiat currency and vice versa.
*An integrated crypto exchange and custodial crypto wallets are provided by our partner Manerio UAB. You can find more information here.
FAQ:
Are all cryptocurrencies compatible and exchangeable with each other?
In this case it is better to use the term interoperability. It is possible to operate with different cryptocurrencies ONLY if they use the same token standard, that is, if they were created to use the same network.
What token standards are there in Blackcatcard?
Thanks to the work of our partner Manerio UAB, our clients can manage three of the most important cryptocurrencies on the market with their respective networks: Bitcoin – BTC; Ethereum – ERC-20; and USDT (Tether US) – ERC-20 and TRC-20.
Can I transfer USDT using any of the two available networks?
Attention! Always use the network that corresponds to the cryptocurrency you use. If you have USDT created under the TRC-20 standard, they cannot be sent to another wallet that uses only the ERC-20 standard.
