What differentiates Jetton on TON from the token system on ETH? What functionalities does Jetton have that ETH tokens do not possess?
Specifically, what are the primary differences between Jetton on TON and the token system on ETH at present?
The Jetton standard on TON (The Open Network) and the token system on Ethereum (ETH) represent two different approaches to token implementation in blockchain ecosystems. Let’s discuss the primary differences between them:
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Smart Contract Architecture:
- TON Jettons: Each Jetton in TON is associated with a master smart contract and individual smart contracts for each owner, known as “jetton-wallets”. This distributed architecture means that each user’s balance is managed by a separate smart contract.
- Ethereum Tokens: In Ethereum, typically, all balances of a specific token are managed by a single smart contract. Each token adhering to standards like ERC-20 has its own contract, which tracks the balances of all users.
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Transfer Mechanism:
- TON Jettons: The transfer of Jettons involves a process where the sender’s jetton-wallet contract sends a message to the receiver’s jetton-wallet contract to update balances. This includes handling of
forward_payload, allowing for additional data or messages to be sent along with the transfer. - Ethereum Tokens: Transfers are usually simpler, with the ERC-20 standard providing a
transferfunction that updates the balances within the contract. There’s no inherent mechanism for additional data with the transfer (though it can be implemented in various ways).
- TON Jettons: The transfer of Jettons involves a process where the sender’s jetton-wallet contract sends a message to the receiver’s jetton-wallet contract to update balances. This includes handling of
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Custom Payloads and Forwarding Toncoins:
- TON Jettons: Offers the capability to include custom payloads and forward Toncoins (the native currency of TON) alongside jetton transfers. This feature enables more complex interactions and use-cases within a single transaction.
- Ethereum Tokens: While Ethereum smart contracts are highly versatile, the standard token transfer methods (like ERC-20) do not natively support additional custom payloads or forwarding native ETH in the standard transfer method.
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Decentralized Balance Management:
- TON Jettons: Each jetton-wallet contract independently manages the balance of jettons for a user, providing a more decentralized approach to balance management.
- Ethereum Tokens: Balance management is centralized within the token’s smart contract.
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Burn Mechanism:
- TON Jettons: Includes a specific mechanism for burning jettons, which is an integral part of the standard. This allows for reducing the supply of tokens in a controlled manner.
- Ethereum Tokens: Burning tokens is typically achieved by sending them to a known burn address, but it’s not a standardized part of the ERC-20 protocol.
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On-chain Balance Inquiry:
- TON Jettons: The standard mentions a drawback related to querying actual wallet balances on-chain, as balances might change by the time the query is processed.
- Ethereum Tokens: Balance inquiries are straightforward and reflect the state at the time of the latest block.
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Future Development:
- TON Jettons: The documentation hints at future developments like external message tokens, indicating an evolving standard.
- Ethereum Tokens: Ethereum’s token standards are also evolving, but changes and new features typically come in the form of new standards (like ERC-721 for NFTs, ERC-1155 for multi-token standards, etc.).
| Feature | TON Jettons | Ethereum Tokens |
|---|---|---|
| Smart Contract Structure | Each Jetton has a master contract and individual jetton-wallet contracts for each owner. | A single smart contract manages all token balances. |
| Transfer Mechanism | Transfer involves sender and receiver jetton-wallet contracts interacting. | Uses a transfer function in the contract to update balances. |
| Custom Payloads and Forwarding Currency | Supports custom payloads and forwarding of Toncoins alongside jettons. | No native support for additional data or forwarding ETH in standard transfers. |
| Decentralized Balance Management | Balance is managed by individual jetton-wallet contracts. | Balance management is centralized within the token’s contract. |
| Burn Mechanism | Specific burn mechanism as part of the standard. | Typically involves sending to a burn address, not standardized in ERC-20. |
| On-chain Balance Inquiry | Challenges in querying actual on-chain balances due to potential changes. | Direct and current balance inquiries based on the latest block. |
| Flexibility and Use-cases | Allows for complex interactions in a single transaction with more flexibility. | Highly versatile but less flexibility in standard token transfers. |
| Future Development and Evolution | Indicates potential future developments like external message tokens. | Evolves through new standards (e.g., ERC-721, ERC-1155). |
| Adoption and Ecosystem | Still evolving and gaining adoption. | Widely adopted with a vast ecosystem of applications. |
In summary, the Jetton standard on TON introduces a more decentralized approach to token balance management and offers features like custom payloads and forwarding of native currency alongside token transfers, which are not inherent in Ethereum’s token standards like ERC-20. However, Ethereum’s token system benefits from simplicity and widespread adoption in the blockchain ecosystem.