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What is the Difference Between USDT ERC20 and USDT TRC20?

Posted by forbesradar.co.uk 10 September 2024

Introduction

USDT, also known as Tether, is a popular stablecoin that is available on multiple blockchain networks. Two of the most common versions of USDT are USDT ERC20 and USDT TRC20. While both represent the same value (1 USDT = 1 US dollar), they work on different blockchains, which affects things like transaction speed and fees.

What is USDT ERC20?

USDT ERC20 is the version of Tether that operates on the Ethereum blockchain. ERC20 is a technical standard used for creating tokens on Ethereum, which means USDT ERC20 uses Ethereum’s network to function.

Key Features of USDT ERC20:

  • Network: Runs on the Ethereum blockchain.
  • Fees: Transaction fees, also known as gas fees, can be high because the Ethereum network can get very busy.
  • Transaction Speed: While Ethereum is secure and reliable, its transactions can sometimes be slow due to network congestion.
  • Compatibility: USDT ERC20 is compatible with many Ethereum-based applications and wallets.

When you use USDT ERC20, you will need an usdt-erc20 wallet address, which is an Ethereum-based wallet address that can store ERC20 tokens, including USDT.

What is USDT TRC20?

USDT TRC20 is the version of Tether that operates on the TRON blockchain. TRC20 is the standard for tokens on TRON, similar to ERC20 on Ethereum.

Key Features of USDT TRC20:

  • Network: Runs on the TRON blockchain.
  • Fees: TRON network fees are generally much lower than those on Ethereum, making USDT TRC20 cheaper to use for transactions.
  • Transaction Speed: Transactions on the TRON network are faster than on Ethereum, so USDT TRC20 transfers are often quicker.
  • Compatibility: USDT TRC20 works with wallets and applications that support the TRON network.

Main Differences Between USDT ERC20 and USDT TRC20

  1. Blockchain Network:
    • USDT ERC20 operates on Ethereum, while USDT TRC20 operates on TRON.
  2. Transaction Fees:
    • USDT ERC20 has higher fees due to Ethereum’s gas fees.
    • USDT TRC20 has lower transaction fees because the TRON network is designed to be more affordable.
  3. Speed:
    • USDT TRC20 is generally faster to transfer due to TRON’s higher transaction throughput.
    • USDT ERC20 can be slower during times of high Ethereum network activity.
  4. Wallet Addresses:
    • If you are using USDT ERC20, you will need an usdt-erc20 wallet address (an Ethereum wallet).
    • For USDT TRC20, you need a TRON-compatible wallet address.

Conclusion

The key difference between USDT ERC20 and USDT TRC20 is the blockchain they use. USDT ERC20 is built on Ethereum and has higher fees and slower transactions, while USDT TRC20 is on TRON, offering faster and cheaper transfers. When choosing which version of USDT to use, it depends on your needs for cost and speed.