USDT TRC-20 vs ERC-20: What Is The Difference

Understanding the difference between USDT TRC-20 and USDT ERC-20 tokens are an essential issue for investors. Working with one of these digital assets affects the transactions’ speed, commissions and efficiency of operations.

In this article, we will explain the features of both USDT TRC-20 and ERC-20 and take a closer look at the main differences between them. This information will definitely help you make a decision about which asset to invest in for improving your cryptocurrency management.

What Is USDT TRC-20?

USDT TRC-20 is a specific token similar to USDT but issued on the TRON network and used for building smart contracts on this network. All transactions that perform using TRC-20 take place on the TRON blockchain network. It also should be mentioned, this protocol can work not only with USDT, but also with other cryptocurrencies that are supported on the TRON network.

TRC-20 tokens are created with the help of the TRON Virtual Machine (TVM). Such types of digital coins utilize all of TVM features, including token transfers and interactions with other contracts. In this way TRC-20 tokens provide scalable transactions. Other TVM features include high efficiency and throughput, which attracts the entrepreneurs attention to create tokens.

USDT TRC-20 tokens interact with different applications on the TRON network, including dApps and other services. Nevertheless, the token is limited by the TRON blockchain, therefore it may lead to the limited interaction with applications on other blockchains, too.

What Is USDT ERC-20?

USDT ERC-20 is a version of USDT token created on the Ethereum network.

ERC-20 tokens also work with the usage of a virtual machine, in this case it is the Ethereum Virtual Machine (EVM). It allows token transfers and gives access to token balances. Smart contracts on the Ethereum blockchain are issued to deploy tokens, which are the standard ones for fungible tokens inside the ecosystem. It means that ERC-20 tokens are compatible with other crypto created on the platform.

Key Differences Between TRC-20 And ERC-20

As already mentioned, USDT effectively operates on the TRON and Ethereum blockchain networks, following the TRC-20 and ERC-20 token standards respectively. These modernized tokens both are stablecoins, but their functioning with the TRON and Ethereum networks has significant differences.

Cryptocurrency users should know these nuances and take them into account before integrating with these digital assets. Let’s see:

• Blockchain Technology. The most important and obvious difference is that each token operates on diverse blockchain networks. USDT TRC-20 is supported by the TRON network, which emphasizes scalable transactions. This aspect makes the network a perfect choice for users who make transfers frequently. On the other hand, USDT ERC-20 issued on the Ethereum blockchain is lower in scalability but is not limited in smart contract functionality.

• Transaction Speed. The TRON blockchain has high throughput and transaction speed: usually the network can process up to 1000 operations per second, and each of them takes no more than 3 minutes to complete. Ethereum's performance is lower — it can process only 15 transactions per second, each of which takes 15 minutes. The conclusion here is that the TRC-20 standard is better than ERC-20 one in terms of transaction speed.

• Transaction Fees. The Ethereum network with its ERC-20 tokens is characterized by the higher transaction fees compared to the TRC-20 ones. ERC-20 fees can reach 30 USDT per transaction, while TRC-20 fees are a maximum of 2 USDT. Ethereum’s high fees are connected with the large number of users and low performance. It leads to network overload and, as a result, high fees. TRC-20 standard deals with lower transaction costs on the TRON network as there are almost no overloads due to the high speed. It makes the token a cost-effective option, that is why many traders often transfer their USDT to the TRON network.

• Network Compatibility. ERC-20 tokens work within the extensive Ethereum ecosystem, including dApps, various exchanges and services. These broad integrations make, for example, the USDT ERC-20 more acceptable in many contexts. As for USDT TRC-20, the token is designed specifically for the TRON ecosystem, so it is well supported there. But it may face limitations outside the network and while interacting with other platforms.

Understanding the differences between USDT TRC-20 and ERC-20 tokens is key to making a wiser choice related to your cryptocurrency investments. TRC-20 token standard provides high transaction speed and reduces costs, that is why it is useful for those who appreciate time and want to save money. On the other hand, ERC-20 token protocol provides users with extensive utilizing of coins and ensures transactions with a high level of security, that is also significant.

We hope this article has helped you understand the differences between USDT TRC-20 and ERC-20 tokens, and now you are able to make a rational choice of the digital asset or blockchain network that suits you the most. We recommend you to review popular questions that may be useful for you while working with this type of digital assets.

FAQ

Are TRC-20 And ERC-20 The Same?

TRC-20 and ERC-20 are both specific token standards based on smart contracts technology but working on totally different blockchain networks. TRC-20 is functioning within the TRON network. In turn, ERC-20 works on the Ethereum one. So, they are not the same thing at all.

Which USDT Is Better: TRC-20 Or ERC-20?

The choice between tokens issued on the certain network depends on your preferences and priorities. If low fees and fast transaction speed are more essential to you, crypto on the TRC-20 standard will be your best option. If your priority is wider adoption and high security, then choose ERC-20 based ones.

How Do I Know If My USDT Token Is TRC-20 Or ERC-20?

You can determine your USDT by its blockchain network base and used contract address. USDT TRC-20 operates on the TRON network and has addresses starting with "T". USDT ERC-20 is based on the Ethereum network and its addresses start with "Ox".

Can I Transfer ERC-20 To TRC-20 Wallet?

Direct transfer of ERC-20 tokens to TRC-20 and vice versa is not possible because of the vital differences in the used blockchain technologies. However, you can use a cross-chain bridge option or a crypto exchange for converting them. In this case, ERC-20 tokens are exchanged for TRC-20 ones within the chosen platform, and then, they can be withdrawn to the desired wallet.

Keep in mind that each platform has its own terms of exchange and currency transfers between wallets. Mostly, it is connected with different amounts of fees. For example, Cryptomus doesn’t charge any commission at all when coins are transferred within the platform. Moreover, there is a wide range of tools, such as an auto converter and transaction status tracking that can make the process of interacting with crypto more pleasant and convenient.