Why is TRC20 not secure (Why TRC20 does not use transaction fees)?

Why is TRC20 not secure? Editor’s note: This article is from the Plain Language Blockchain (ID: hellobtc), author: a tree, authorized reprint of Odaily Planet Daily.

Hello everyone! I am the White Cat Miss, and today I’m going to talk about why TRC20 is not secure, because it is an ERC-20 token project based on the Ethereum blockchain. I previously shared some recent events on Twitter:

1. Bitcoin community member @0xMaki stated that he received an email address about Tether company and a message from a fake company, claiming to know whether the information is true or false; 2. Tether company sent an email to users, telling them that Tether has interacted with them. But no explanation was given. And according to the current situation, it is actually an incorrect piece of information. What we need to pay attention to now is that Tether did not respond to this message, but chose to transfer funds from its own account from the TetherTreasury address to a contract address on GitHub, and then generated a new TRC20 token using this contract and added it to the new token contract; 3. “Do you think this is a scam?” Despite such doubts, it is obvious that someone will come up with a solution – replacing your ETH address with a smart contract.

So, first of all, let’s consider this issue.

The first is not to trust third parties or trust others through trust. For those who want to obtain these assets, it is best to return the private key to the exchange or wallet themselves. The second question is whether you hold your own private key, and whether any digital currency you own belongs to someone else?

Third, we must remember one thing: when we are trading, we must remain anonymous in order to avoid dangerous signals such as being hacked. For example, you can link directly to a certain exchange, convert USDT back to the original US dollars, and then withdraw it. For example, if you deposit USDT worth 1,000 yuan in a certain exchange, you will find that this transaction is risky, and because most people do not understand this operation, it cannot guarantee that the user’s identity is confirmed; in addition, once both parties to the transaction have signed the agreement contract and completed the transfer transaction on the exchange, they can continue to track the reasons for the transaction, making the loss more serious. 1. If someone asks you to freeze your assets, please make sure to stop your assets immediately, otherwise your property may be compromised. 2. “Do you want to sell my assets, do you think it’s not real?” If a customer tries to steal your BTC, it will cost 10 cents, which means you cannot pick up their crypto wallet and cannot recover all the funds. There are many reasons inside.

Why doesn’t TRC20 use transaction fees?

Editor’s note: This article is from BlockBeats (ID: blockbeats), authorized reprint of Odaily Planet Daily.

For a new project, a lot of costs and manpower will be spent to ensure the smooth progress of the project during operation. If this project fails, the development team will have to pay more costs. To solve this problem, we chose to use the TRC20 scheme. Both of these protocols are implemented by zk-SNARK. zk-SNARK can improve transaction speed and reduce fees without the need for transaction fees. Therefore, fundamentally speaking, these all sacrifice decentralization to incentivize users.

However, if there is not enough money to prepare, users may quickly lose their money. Because they can’t control the assets in their own accounts. Therefore, if no action is taken, they may lose their value or cause a catastrophic collapse of the entire system. In addition, if necessary, users should be able to keep their funds safe and reinvest as soon as possible. Since currently only cryptocurrencies like Bitcoin Cash support this feature in the market, it is difficult to attract a large number of new customers even if it is so. So when you want to use it as an alternative, you need to pay all the transaction fees.

Why use it? First, we need to have a verifiable network state root (UTXO) to record all the outputs generated by each transaction pair in each transaction. For example, a UTXO can be any amount of ERC-20, or a new form in a non-ETH format. Then, we can also update its transaction data based on the network state to make it more reliable.

Secondly, our chain must also include transaction history, including the history information of sending or receiving transactions, and transaction types, etc. Although this method has lower gas costs, higher throughput, and other features compared to other similar transactions, it is not suitable for complex applications like BTC. Therefore, we will no longer accept Tether and other stablecoins issued based on the Ethereum blockchain, because they are part of the Ethereum ecosystem, not something specific to the crypto field.