USDT Features: What's the Difference Between TRC-20 and ERC-20?

For beginner traders, the difference between TRC-20 and ERC-20 tokens may be unclear. But it is important to understand the differences, since the speed of transactions and the size of commissions depend on this. In this article, we will consider which is better: ERC-20 or TRC-20. We will also tell you in detail about the differences between them. This information will help you decide which asset is more effective to invest in. 

What is USDT?

USDT is a stablecoin that is stable. The fact is that USDT is pegged to the fiat currency - the US dollar. That is why the token rate is less volatile and does not differ much from the rate of the official American currency. USDT tokens are used for exchanges, online purchases and trading. If you need to change cryptocurrency, then take a closer look at the Mason-ex service. This is a popular platform for instant exchanges, which makes transactions safely and anonymously.

Initially, USDT was created to solve the problem of exchange rate fluctuations and the difficulty of converting digital assets into real money. As a result, this asset has become one of the most popular and ranks 3rd in capitalization and 1st in daily trading volume.

Since there are many blockchain networks, developers have created separate tokens for each of them. Thus, ERC-20 is developed in the Ethereum network, and TRC-20 in TRON. This is important to consider when conducting transactions. Which asset is better to choose depends on the investment goals.

TRC-20 - what is it?

TRC-20 is a token that belongs to USDT, but it was developed in the TRON network and is needed to create smart contracts. At the same time, the protocol is compatible with other blockchain cryptocurrencies, i.e. not only with USDT.
Thanks to the TRON Virtual Machine (TVM), the digital asset provides scalable transactions, a high level of efficiency and throughput. 

Advantages of TRC-20:

• a huge number of transactions are possible;
• peer-to-peer operations;
• accuracy;
• high scalability;
• easy replacement.

Another key feature is the ability to use the token in dApps and other services. But with applications of other blockchains, the digital asset may have limitations.

What is ERC-20?

ERC-20 is a USDT token developed in the Ethereum blockchain in accordance with the ERC-20 standard. The digital asset is compatible with other cryptocurrencies of this network. The ease of creating and deploying tokens made ERC-20 popular among investors.

Advantages of ERC-20:

• high transaction speed;
• accessibility of token creation;
• security;
• high liquidity ratio;
• can be used in trading, betting, etc.

The ERC-20 standard is quite widely used to create tokens. That is why this digital asset is popular among traders.

What is the difference between ERC-20 and TRC-20?

To make the right choice, you need to understand the differences between tokens of different standards. ERC-20 and TRC-20 are stablecoins, but their main functionality is different. Crypto investors should know the nuances before using tokens. Let's take a closer look at the distinctive features:

• Blockchain is the most important difference. TRC-20 is developed on the TRON network, so transactions using this token are scalable. Therefore, this token is convenient for those who make frequent transfers. ERC-20, thanks to the Ethereum blockchain, does not have as much scalability as TRC-20, but it has more functionality.
• The network commission is higher for ERC-20, it can be $30 per transaction. And for TRC-20 it is a maximum of $2.
• The TRON blockchain has a higher transaction processing speed - up to 1000 per second. It will take a maximum of 3 minutes to complete. What the Ethereum blockchain cannot boast of - only 15 operations per second, and each takes 15 minutes.
• ERC-20 has better interaction, all tokens of the standard are compatible and can be kept in one wallet. And TRC-20 is compatible only with wallets that are developed for TRON.
• ERC-20 has a larger user and developer community than TRC-20. This is important, since this factor affects the availability of tools and infrastructure.

Now you know the difference between USDT TRC-20 and ERC-20. Which token to choose depends on the final purpose of use.

How to transfer USDT?

USDT works in different networks: Solana, TRON, Ethereum and several others. Consider which network the token belongs to. You will not be able to conduct a transaction between ERC-20 and TRC-20, since these assets use different blockchain technologies. 

Answering the question of whether it is possible to transfer USDT via ERC-20, it is worth mentioning the importance of choosing the right network. You can transfer, exchange, sell your tokens using the Mason-ex service. The platform offers the option of withdrawing to a card, as well as in cash.

Conclusion

Which token to choose depends on the needs of the trader. If you need to make a transfer quickly and cheaply, then TRC-20 is suitable for this. In the case where you need broader functionality, then it is better to choose ERC-20.

When you conduct transactions using the above-mentioned tokens, make sure that they belong to the same network. Otherwise, you risk losing funds.