Everything You Need To Know About USDT Networks

When you get involved in the cryptocurrency market, one of the first coins you meet is USDT. And before starting to interact with it, you probably wonder what blockchain network it operates on. Did you know that USDT works on more than 20 networks?

In this article, we will tell you in detail about the 7 most popular blockchain networks where USDT is supported and reveal their features.

What Is USDT?

USDT (Tether) is a stablecoin whose value is equal to the US dollar. The stability of USDT makes it a convenient payment method, moreover, the coin is often used to pay due to the wide variety of blockchains in which it operates. Being tied to different networks makes USDT one of the most versatile assets in the crypto sphere, but at the same time, it complicates the identity when making transactions.

In order to simplify these processes, USDT contract addresses were developed. Those are the unique identifiers in the form of symbols and digits that host a particular token. In other words, it is a specially designed place that runs a smart contract that manages a token. So, when you make transactions with your USDT within the blockchain, you are interacting with its smart contract via the contract address.

Types Of USDT Networks

As we’ve already mentioned, USDT operates on different blockchain networks, so it has different contract addresses and token standards. If you want to know what network your USDT is, just look at its contract address.

Among the 7 most popular USDT networks are Ethereum, TRON, Binance Smart Chain, Solana, Avalanche, Polygon and Arbitrum. Let's take a closer look at them in the table below.

Blockchain (Network)	Token Standard	Example of the USDT Contract Address
Ethereum	Token Standard ERC-20	Example of the USDT Contract Address "0xdac17f958d2ee523a2206206994597c13d831ec7"
TRON	Token Standard TRC-20	Example of the USDT Contract Address "TVYg8rpibDoq93wo8tTcGtfSUKkjbV58eF"
Binance Smart Chain	Token Standard BEP-20	Example of the USDT Contract Address "0x55d398326f99059ff775485246999027b3197955"
Solana	Token Standard SPL	Example of the USDT Contract Address "Es9vMFrzaC1H6zzggBqqEgakx4eCnmLmJtZNe5yW3sn"
Avalanche	Token Standard C-Chain	Example of the USDT Contract Address "0xc7198437980c041c805a1edcba50c1ce5db95118"
Polygon	Token Standard MATIC	Example of the USDT Contract Address "0x3813e82e6f7098b9583FC0F33a962D02018B6803"
Arbitrum	Token Standard Layer-2	Example of the USDT Contract Address "0xfd086bc7cd5c481dcc9c85ebe478a1c0b69fcbb9"

The variety of blockchains where USDT is represented not only makes the coin a common payment method but also allows it to be used for interacting with DeFi products. At the same time, for those who have never used USDT for payment, this range of networks can make it difficult to choose. Therefore, before you start investing in the coin, you should consider the features of each network, which we tell you about below in this article.

Ethereum (ERC-20) Network

Ethereum is known as the second cryptocurrency after Bitcoin, but it is also a blockchain network. USDT is represented in the form of an ERC-20 token with a contract address like this: "0xdac17f958d2ee523a2206206994597c13d831ec7". That is just an example of an address; it differs with each coin.

Let's take a look at the features of the Ethereum (ERC-20) network and its pros and cons.

The advantages of the Ethereum (ERC-20) network:

• ERC-20 tokens are used by a large number of dApps, wallets and exchanges.

• The standard has a high level of liquidity, especially on decentralized exchanges.

• The Ethereum network is one of the most secure due to the large number of nodes.

The disadvantages of the Ethereum (ERC-20) network:

• The network is limited in scalability, so it can lead to slow transactions and high fees.

• Smart contracts of the ERC-20 standard are difficult to develop, so tokens are limited in some functionality.

• Some tokens are controlled by centralized organizations, and there are risks of manipulation by their management.

TRON (TRC-20) Network

In the TRON network, the technical standard is called TRC-20, and it is similar to the ERC-20 in the Ethereum network. Moreover, TRC-20 tokens can be transferred between two networks using crypto bridges. If you are going to work with USDT TRC-20 tokens, do not forget to know about their contract address looking like: "TVYg8rpibDoq93wo8tTcGtfSUKkjbV58eF".

The advantages of the TRON (TRC-20) network:

• TRC-20 tokens charge low transaction fees, which is beneficial for active crypto enthusiasts.

• Transactions on the TRON network are very fast due to a high bandwidth.

• A large number of transactions can be processed at the same time within the network, so the number of supporting dApps is growing.

The disadvantages of the TRON (TRC-20) network:

• To utilize the full capabilities of the TRON network, users have to stake TRX, which can be inconvenient for them.

• Despite the development of the network, it has a small developer community, so the availability of some dApps and services is limited.

• The network has a governance structure, so block production is controlled by a few super-representatives, which calls into question its decentralized nature.

BSC (BEP-20) Network

The Binance Smart Chain (BSC) network was developed by Binance as a high-performance blockchain that runs alongside the Binance Chain. In comparison with the latter, BSC utilizes smart contracts that make the network a versatile platform. This way, the BEP-20 tokens work similarly to the ERC-20 ones, but have a higher bandwidth. Of course, they differ in the contract address, which for USDT BEP-20 is as follows: "0x55d398326f99059ff775485246999027b3197955".

The advantages of the BSC (BEP-20) network:

• BSC is compatible with other blockchains and tokens that can be transferred using a crypto bridge.

• Transactions with BEP-20 tokens have low fees, mostly due to the network’s high speed.

• Binance support provides resources to network developers, so the BSC is actively growing an ecosystem of dApps and other services in the DeFi sphere.

The disadvantages of the BSC (BEP-20) network:

• Due to BSC's rapid growth, many DeFi projects have been attracted to it, and some of them have become subjects to hacks and bring risks to the network generally.

• Despite Binance's strong support, the BSC network is highly dependent on it, and any changes in the platform's operations affect the network's ecosystem as well.

• The BSC network and all BEP-20 token transactions are controlled by a limited number of validators (as a rule, selected by Binance), which may reduce decentralization.

Solana (SPL) Network

The SPL standard is designed to create tokens and network configurations in the Solana blockchain. It is similar to the ERC-20 one but optimized for the Solana system to be more efficient and cost-effective. For example, in addition to the Proof-of-Stake (PoS) mechanism that secures the network, Solana also uses Proof-of-History (PoH), which organizes transactions. The USDT SPL token runs on the contract address "Es9vMFrzaC1H6zzggBqqqEgakx4eCnmLmJtZNe5yW3sn". That is just an example of an address, it differs with each coin.

The advantages of the Solana (SPL) network:

• The Solana network has a very high bandwidth compared to others, so transactions are confirmed almost instantly.

• Transaction fees with SPL tokens are minimal, which is why they are often chosen by users.

• The Solana ecosystem integrates with various dApps services and is rapidly expanding in the spheres of DeFi, NFT and gaming.

The disadvantages of the Solana (SPL) network:

• The Solana network has met work delays and outages several times, and this is a concern for some users.

• Solana is a fairly young network and has complex technology in terms of development at the same time; these two facts together can lead to vulnerability to hacks and frauds.

• The network is linked to the Solana Foundation, which influences its development heavily, so it is at risk of centralization.

Avalanche (AVAX C-chain) Network

The token AVAX C-chain of the Avalanche network is one of the three main chains it consists of. The C-Chain is designed to work with smart contracts and is also fully compatible with the Ethereum network capabilities. The USDT C-chain token on the Avalanche network runs on the contract address such as "0xc7198437980c041c805a1edcba50c1ce5db95118".

The advantages of the Avalanche (AVAX C-chain) network:

• The network has a high bandwidth and allows a large number of transactions per second, so it is suitable for high volume transactions.

• Network fees with C-Chain transactions are low, even in times of high demand.

• The network is interoperable and can interact with other blockchains, allowing smart contracts to be transferred from one network to another.

The disadvantages of the Avalanche (AVAX C-chain) network :

• Avalanche consumes a lot of energy, which negatively impacts the environment.

• Due to its popularity, the network is subject to heavy congestion, which can slow down transaction confirmations.

• Avalanche has the risk of becoming a centralized network due to the set of validators, although this probability is low.

Polygon (MATIC) Network

Polygon network is a solution for Layer-2 scaling and cost efficiency of Ethereum. It builds and connects blockchain networks compatible with the Ethereum one for creating optimized dApps. The network’s USDT token named “MATIC” running on the contract address like "0x3813e82e6f7098b9583FC0F33a962D02018B6803" helps manage and pay network transaction fees. That is just an example of an address, it differs with each coin.

The advantages of the Polygon (MATIC) network:

• Transactions’ confirmation on Polygon is fast, which is especially convenient for gaming and trading fields.

• The network utilizes both Ethereum security and proprietary measures to maintain a secure environment for MATIC transactions.

• Polygon has cross-chain compatibility, not only with the Ethereum network but also with others.

The disadvantages of the Polygon (MATIC) network:

• Although the Ethereum network offers some advantages to Polygon, the latter can be affected by the former's difficulties, such as congestion and high fees.

• The network’s rapid growth has led to its fragmentation, due to some projects offering similar services and confusing users.

• Like many other networks, Polygon has a risk of centralization due to the recruitment of a specific group of validators.

Arbitrum (Layer-2) Network

The Arbitrum network is another Layer-2 solution for scaling Ethereum, aimed at increasing speed and reducing costs. The network utilizes "Optimistic Rollups" technology to be able to process transactions off-chain and reduce the data amount. USDT in Arbitrum (Layer-2) can be found at contract address "0xfd086bc7cd5c481dcc9c85ebe478a1c0b69fcbb9" and then it is possible to utilize this cost-effective environment for dApps. That is just an example of an address, it differs with each coin.

The advantages of the Arbitrum (Layer-2) network:

• The Arbitrum network has a high bandwidth, increasing transaction processing speeds and supporting more complex dApps.

• Unlike the Ethereum network, Arbitrum offers low gas fees, becoming an affordable ecosystem for large-scale transactions.

• This network is being actively deployed in the DeFi sphere, and many protocols and applications, in turn, spread within the network itself, increasing its capabilities.

The disadvantages of the Arbitrum (Layer-2) network:

• The network infrastructure seems complex for newcomers to Layer-2 solutions, which leads to a long learning process or a refusal to use it.

• Withdrawals within Arbitrum often experience delays of up to a week due to long fraud checks.

• As an innovative solution for Ethereum, the Arbitrum network depends on it and gets any problems that arise in Ethereum.

Best Network To Transfer USDT

Which network is the best to use for USDT transfers? The choice depends only on your preferences. You should choose the one based on speed, cost of transactions, and security of the network.

For example, if low fees are important to you, choose TRON, BSC, Solana, Arbitrum or Polygon. For those who need transactions to be processed quickly, TRON, BSC, Solana and Polygon are also best. For high security, it's best to select Ethereum itself.

Each USDT blockchain has its pros and cons, so before choosing a network to work with, you should study the features of each. We hope that our guide has helped you understand their main differences, and now you feel more confident in selecting a network to work with USDT.