Blockchain technology has revolutionized how we think about ownership, value transfer, and digital assets. At the heart of this transformation are tokens—digital representations of value that power decentralized applications, economies, and ecosystems. In this comprehensive guide, we’ll explore the fundamental concepts of tokens, dive into the ERC-20 standard, and examine how the Move programming language on the Sui network redefines token design with its native Coin framework.
Whether you're a developer building on Sui or a blockchain enthusiast seeking deeper understanding, this article will clarify core concepts while highlighting key innovations that make Move-based systems more intuitive and secure.
Understanding Tokens in Blockchain
Tokens are digital assets that exist solely on a blockchain—a decentralized, tamper-resistant ledger. Unlike physical money or traditional securities, tokens represent value in a programmable format. They can symbolize anything from cryptocurrencies and company shares to voting rights in decentralized autonomous organizations (DAOs) or even virtual collectibles in games.
One of the most well-known token standards is ERC-20, which emerged on the Ethereum blockchain. It established a common set of rules for how tokens should function, enabling seamless integration across wallets, exchanges, and decentralized applications (dApps).
But beyond Ethereum, newer platforms like Sui are reimagining how tokens work at the language level—using the Move programming language to build safer, more intuitive digital currencies.
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The ERC-20 Token Standard: A Foundation for Interoperability
The ERC-20 standard was one of the first widely adopted specifications for creating fungible tokens on Ethereum. By defining a consistent interface, it ensures that all ERC-20 tokens can interact predictably with smart contracts, exchanges, and user wallets.
Here are the core functions defined by the ERC-20 standard:
totalSupply(): Returns the total number of tokens in circulation.balanceOf(address _owner): Retrieves the token balance of a specific Ethereum address.transfer(address _to, uint256 _value): Enables the sender to transfer a specified amount of tokens to another address.
These functions create a universal framework that supports interoperability. For example, any wallet that supports ERC-20 can display your USDT or UNI balances without needing custom code for each token.
However, there’s a major limitation: every developer must implement these functions manually. There’s no built-in library or system-level support on Ethereum Virtual Machine (EVM) chains. This leads to repetitive coding and increases the risk of bugs or vulnerabilities due to inconsistent implementations.
This is where Move on Sui introduces a groundbreaking improvement.
Introducing the Coin Framework in Move on Sui
Move, the programming language behind Sui and other modern blockchains, takes a fundamentally different approach. Instead of requiring developers to rewrite token logic from scratch, Move includes a native Coin standard at address 0x2. This means developers can instantly create and manage tokens using battle-tested, system-level code—without reinventing the wheel.
On Sui, these native digital currencies are called Coins, reflecting their role as first-class citizens in the ecosystem.
But the innovation doesn’t stop at code reuse. The Coin framework also rethinks how users interact with their assets—making ownership more intuitive and aligned with real-world experiences.
A More Natural Model of Ownership
In EVM-based systems like Ethereum, token balances are stored centrally within the token contract itself. For instance, when you hold USDC, your balance isn’t “in” your wallet—it's recorded inside the USDC smart contract. Your wallet merely queries that contract to display your balance.
This model resembles a traditional banking system: your money isn't physically in your pocket; it's just an entry in the bank’s database.
In contrast, Move on Sui adopts an object-centric model. When you receive Coins, they are stored directly in your wallet as individual objects—like holding physical cash. Each Coin is an owned object on the blockchain that you fully control.
This design offers several advantages:
- True ownership: You don’t just have a balance entry—you possess the actual asset.
- Improved usability: Users understand they “have” something tangible in their wallet.
- Enhanced security: Since assets are objects, they benefit from Move’s strict ownership and linear typing rules, preventing common issues like double-spending or unauthorized duplication.
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Why the Move Coin Design Matters
The way we model digital currency affects everything—from developer productivity to user experience and security.
By embedding the Coin standard directly into the platform, Sui eliminates redundant code and reduces attack surfaces. Developers don’t need to audit custom implementations of transfer() or balanceOf()—they use a trusted system module.
Moreover, because Coins are first-class objects in Move:
- Transactions feel more natural: sending Coins is like handing over physical money.
- Composability improves: Coins can be easily integrated into complex DeFi protocols or NFT marketplaces.
- User education becomes simpler: new users grasp ownership faster when their assets are literally “in” their wallet.
This shift reflects a broader trend in blockchain evolution: moving from abstract, developer-centric models to human-centric designs that prioritize clarity and safety.
Frequently Asked Questions (FAQ)
Q: What is the main difference between ERC-20 tokens and Sui Coins?
A: ERC-20 tokens store balances in a central contract, while Sui Coins exist as individual objects owned by users. This gives Sui a more intuitive ownership model and reduces development overhead.
Q: Can I create custom tokens using the Coin framework on Sui?
A: Yes. The native Coin standard allows developers to define new fungible tokens with minimal code, leveraging secure, pre-audited system modules instead of writing everything from scratch.
Q: Is the Coin standard on Sui compatible with Ethereum tokens?
A: Not directly, but bridges and cross-chain protocols enable asset transfers between Sui and Ethereum. The functional differences lie in architecture—not interoperability potential.
Q: How does Move’s object model improve token security?
A: Move enforces strict rules around object ownership and lifecycle. A Coin cannot be copied or spent twice, eliminating entire classes of bugs common in EVM smart contracts.
Q: Are all tokens on Sui considered Coins?
A: No. While Coins refer specifically to fungible tokens built using the native framework, Sui also supports non-fungible tokens (NFTs) and custom assets through other object types.
Core Keywords for Search Optimization
To align with search intent and enhance discoverability, here are the core keywords naturally integrated throughout this article:
- Tokens
- ERC-20
- Coin standard
- Move programming language
- Sui network
- Digital currency
- Blockchain tokens
- Fungible tokens
These terms reflect high-intent queries from developers and learners exploring blockchain fundamentals and next-generation platforms.
👉 See how developers are building scalable dApps with Move and Sui
Conclusion
As blockchain technology matures, so too must our approaches to designing digital assets. While ERC-20 laid the foundation for token interoperability, platforms like Sui—powered by the Move programming language—are raising the bar with safer, more intuitive models.
The native Coin framework eliminates redundancy, enhances security, and delivers a user experience that mirrors real-world interactions with money. For developers, it means faster deployment and fewer vulnerabilities. For users, it means clearer ownership and greater trust.
As we move toward mass adoption, these design improvements won’t just be nice-to-have—they’ll be essential. And with tools like Move on Sui leading the way, the future of digital currency looks both powerful and profoundly simple.