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Fungible tokens in Venom network

Fungible token

First, let's make sure we've chosen the right type of token for our purposes. In this article, we will implement the fungible token type. This type of asset is divisible, non-unique, and interchangeable, i.e. one unit is equivalent to any other unit of this asset.

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If you need to implement a different one of the most popular token types is NFT (Non-fungible token), follow this article

Venom network uses the standard of fungible tokens TIP-3

What is TIP-3?

Just as ERC-20 is the most popular standard in the Ethereum network, TIP-3 assumes the same role in the Venom network. TIP-3 was designed to match the distributed system design of the Venom network and is cost-effective for its fee-paying model.

TIP-3 provides the following functionalities

  • transfer tokens from one account to another
  • get the current token balance of an account
  • get the total supply of the token available on the network
  • mint and burn tokens

Some words about differences with ERC20

ERC20 concept simple scheme

As you may know, the ERC20 contract's main value is balance mapping. So users just have records about their balances and work only with this contract. TIP-3 working flow is different because of the asynchronous nature of TVM. Each user has his own wallet and operates with it. Wallet operates with another wallet for transfers (see scheme).

TIP-3 concept simple scheme

Safety of TokenWallet - TokenWallet interaction is provided by address calculation mechanics. Each contract in Venom Blockchain can store some contract code and can calculate an address by using some state variables. Next, this address can be compared with msg.sender address. If it is the same - the call is safe and correct. We will look through this mechanic in detail later.