In recent years, many investors have entered the world of digital currencies and have made good profits. One of the important concepts in the digital currency market are stablecoins, which are known as digital currency with the purpose of maintaining a constant value. Stablecoins are digital currencies whose value is tied to a stable asset such as the US dollar. Tether or USDT, as one of the most popular stablecoins in the market, has different types, the most common of which is ERC20 Tether and TRC20 Tether. If you intend to work professionally in the cryptocurrency market and make a profit from this market, you need to be fully familiar with the difference between ERC20 and TRC20 Tether.
What is a stablecoin?
Stablecoin is a digital currency with the purpose of maintaining a constant value. Unlike Bitcoin and other digital currencies, stablecoins aim to provide a more stable alternative to transactions or store of value. These currencies allow users to avoid price fluctuations while enjoying the benefits of blockchain technology such as fast and secure transactions. One of the most important stablecoins is Tether USDT, which we will introduce below.
Dollar-backed Tether Stablecoin
Tether (USDT) should be considered a crypto stable price currency based on fiat currency (US dollar) that works on both the Bitcoin blockchain and the Ethereum blockchain. Although Tether is usually displayed as USDT (the most common Tether company token), there are other Tethers such as EURT (Euro Tether), CNHT (Yuan Tether) and XAUT (Gold Tether). Tether was created in July 2014 with the aim of addressing two major problems of digital currencies:
High volatility
Difficulty converting fiat currency to crypto
The price of Tether USDT is 1.00 USD and works with ERC-20 and TRC-20 standards. Next, by introducing the token standard, we will examine the difference between ERC20 and TRC20 Tether.
What is the token standard?
Token standards refer to a set of rules governing tokens based on a specific standard. In simpler terms, a token standard is a mechanism for creating, issuing and implementing new tokens on a particular blockchain. ERC20 and TRC20 are examples that provide guidelines for creating new coins in their respective ecosystems. These standards define how tokens interact with blockchain networks and establish startup procedures. Ethereum’s ERC20 standard is widely used and ensures common features among tokens created on its platform. Tron’s TRC20 standard, although less common, includes notable tokens such as Tron (TRX) and Tether (USDT-TRC20).
Getting to know the ERC-20 standard
The ERC-20 standard is a token protocol used to create tokens on the Ethereum blockchain. This standard is a technical model designed to implement Smart Contracts in the Ethereum blockchain. Through ERC-20, various tokens can be created and managed on the Ethereum blockchain by following a series of rules and standards. This important standard is a fundamental point in the development of the Ethereum ecosystem and helps facilitate the process of issuing and trading tokens in this blockchain. USDT ERC20 stablecoin is one of the Ethereum network tokens. Some of the other most popular ERC20 tokens include:
Binance dollar BUSD
SHIB
USDC coin
DAI DAI
ERC-20 token standard features:
The ERC20 token standard uses the Ethereum Virtual Machine (EVM), which allows users or developers to create tokens and assign functions to them.
Users can transfer ERC20 tokens on the Ethereum chain and other chains.
Getting to know the TRC-20 standard
The TRC-20 standard is a token standard used to create smart contracts for tokens on the TRON blockchain. This standard is an updated version of the TRC10 token standard. USDT Tether is a TRC20 token that exists on the TRON network. Other tokens that use this standard include:
USDC coin
Tron USDD exclusive stablecoin
Binance dollar BUSD
Standard Features of TRC-20 Token
Allows TRON network developers to create tokens.
It uses the TRON virtual machine, which allows developers to assign functions to tokens, for example Security Tokens, Governance Tokens, etc.
What is the difference between ERC20 and TRC20 Tether?
To compare ERC20 and TRC20 Tether, we can consider various items. One of the differences is related to the blockchain network, which was explained a little higher about the ERC-20 and TRC-20 token standards. However, the most important difference between Tether Ethereum and Tether Tron that attracts the attention of users is related to the cost of transactions. The TRON blockchain charges negligible fees for on-chain USDT transactions compared to the Ethereum blockchain. The following table summarizes the features of Ethereum Tether and Tether tron.
Features of Ethereum Tether (USDT ERC20) Tether tron (USDT TRC20)
Ethereum Tron Blockchain
Standard ERC20 TRC20 token
Transaction speed is slow (several minutes to several hours) fast (several seconds to several minutes)
More less transaction fee
Consensus Algorithm Proof of Stake Algorithm (PoS) Delegated Proof of Stake Algorithm (DPoS)
Next, we will examine the difference between ERC20 and TRC20 tethers from different aspects:
Blockchain network
Ethereum Tether is an ERC-20 token that runs on the Ethereum blockchain. The Ethereum blockchain uses the Proof of Stake consensus algorithm. The PoS consensus algorithm offers energy efficiency, accessibility and security. On the other hand, Tethert ron is a TRC-20 token that runs on the Tron blockchain. Tron blockchain uses Delegated Proof of Stake consensus algorithm. The DPoS consensus mechanism provides simpler governance and faster consensus than the PoS consensus algorithm.
Address style
When comparing ERC20 and TRC20 Tether, one difference between ERC20 and TRC20 Tether is the way tokens are addressed. The most important difference in the type of addressing is as follows:
An ERC20 address only starts with “0” and “x”. For example: 0xbc6e.
TRC20 addresses only start with the letter T. For example: T9zG21.
Ethereum Tether addresses are 42 characters long, while Tether tron addresses are 34 characters long.
Transfer speed
Ethereum Tether transfer speed depends on various factors, including network volume, gas cost, and what time of day the transaction takes place. Under normal conditions, the transfer speed of Ethereum Tether is about 20 minutes. However, when the Ethereum network is congested, the transfer speed can increase to several hours or even days. The transfer speed of Tether tron is much faster than Ethereum Tether. Under normal conditions, the transmission speed of the Tether tron is about a few seconds. Even in congested network conditions, Tether tron transfer speed usually does not take more than a few minutes. The main difference between the transfer speed of Tether Ethereum and Tether tron is due to the difference in the consensus algorithms that these two networks use. If you are looking for fast Tether transfer speed, using the Tron network with the ability to process 2000 transactions per second is a better option.
The difference in fees
One of the differences between Tether Ethereum and Tether Tron is the cost of their transactions. One of the most important reasons for the use of the Tron blockchain by digital currency market users is its lower transaction costs compared to the Ethereum blockchain. At the time of writing this article, the cost of transferring Tether in the Ethereum blockchain and Tron blockchain at the time of network stability is as follows:
USDT Tron transfer fee from $0.95 to $1.93
USDT ETH transfer fee $1.766
safety
Although TRC20 tokens have considerable security, the safety measures in ERC20 tokens are higher compared to TRC20 type crypto tokens. As a result, Ethereum Tether is considered more secure than Tether tron.
Is TRC20 tether better or ERC20 tether?
Considering the comparison of ERC20 and TRC20 tethers from different aspects and the detailed examination of the difference between ERC20 and TRC20 tethers that was done above, you can easily choose the tether you want. You should note that both USDT ERC20 and USDT TRC20 tethers are good options and choosing the more suitable option depends on your personal needs and preferences. Finally, ERC20 Tether is a more popular option because it supports the Ethereum network, which is a larger and more well-known network. However, if you are looking for lower transaction fees and higher transaction speed, Tether TRC20 will be a better option for you.
The best wallets for Tether USDT
A digital currency wallet is a program or device that uses your public key and private key to store, send and receive digital currencies. Digital currency wallets include two types of software wallets (and hardware wallets). Choosing the best cryptocurrency wallet depends on your personal needs and preferences. If you are looking for high security, a hardware wallet is a good option, and if you are looking for ease of use, a software wallet will be a better option. As an ERC20 and TRC20 Tether difference, when choosing a wallet, you should note that some wallets do not support TRC20 standard tokens. In the following, we will introduce you the best wallets for storing Ethereum Tether and Tether tron.
The best wallet for ERC-20 Tether
CryptoWallet.com wallet
CryptoWallet.com is a mobile software wallet that supports ERC20 Tether. Featuring features including ease of use, this wallet allows you to spend Tether directly from your USDT wallet along with over 800 other cryptocurrencies. CryptoWallet.com wallet also supports Tether with TRC20 standard.
Trezor Model T wallet
Trezor Model T is a leading hardware wallet that supports a wide range of cryptocurrencies including Ethereum Tether (USDT-ERC20). This wallet offers a very secure and user-friendly solution for storing and managing various digital currencies. One of the advantages of Trezor Model T is its ease of use to manage digital currencies offline.
Ledger Nano X Ledger Nano X
The Ledger Nano X wallet supports a wide range of cryptocurrencies, including popular options like Bitcoin, Ethereum, and Litecoin, as well as stablecoins like Ethereum Tether (USDT-ERC20). This wallet is the best wallet for people looking for a hardware wallet to securely manage their Tether tokens and other cryptocurrencies. In addition to security features, Ledger Nano X has a user-friendly interface with a small screen and is suitable for professional users.
MyEtherWallet wallet
MyEtherWallet, abbreviated as MEW, is a popular and user-friendly Ethereum wallet that allows users to create and manage Ethereum wallets. With this wallet you can store Ethereum based tokens, including USDT Tether if it is in ERC-20 format. MyEtherWallet is a mobile and desktop software wallet with an easy-to-use interface.
Coinomi wallet
Coinomi is a versatile digital wallet known for its extensive support for various cryptocurrencies and tokens. This wallet supports USDT on multiple blockchain networks. One of the advantages of this wallet is its easy-to-use interface, which is also suitable for beginner users.
The best wallet for Tether TRC-20
Trust Wallet
Trust Wallet is a popular and reliable mobile wallet that supports a variety of digital currencies. User-friendly design and strong security features make this wallet a great choice. Trust Wallet supports TRC-20 tokens and allows users to store and interact with USDT on the TRON network.
Exodus wallet
As an all-in-one mobile and desktop wallet, Exodus wallet supports USDT TRC20 and other digital currencies such as Bitcoin, Litecoin, Ethereum, etc. One of the notable features of this wallet is its stylish and user-friendly interface.
Cobo Wallet
Cobo Wallet is a multipurpose cryptocurrency wallet that supports a wide range of cryptocurrencies, including USDT TRC20. This wallet is available in desktop, mobile and web versions. Some of the features of this wallet include high security, ease of use, and advanced features such as staking and lending.
Metamask wallet
Metamask is a non-custodial digital currency wallet that is used through web browsers. This wallet supports TRON tokens including USDT trc20. Metamask is a popular choice for both novice and experienced users as it is easy to use and offers many features.
Ledger Nano S Wallet
If you prefer hardware wallets, the Ledger Nano S wallet is a safe choice, and the Ledger Live software is a great interface to work with. Ledger Live is a popular option for users looking for high security and full control over their USDT TRC20 tokens.
final word; Choice between ERC20 and TRC20 Tether
In this article, we tried to compare ERC20 and TRC20 tethers by introducing two common types of USDT tethers that are highly popular and reliable. The most important difference between Tether ERC20 and TRC20 is related to their blockchain network. Another difference between Tether Ethereum and Tether Tron is related to transaction fees, Tether TRC20 has lower transaction fees. Each of these two types of tethers has its own advantages, and choosing which type of tether to use depends on your personal needs and preferences. We hope this article is a good guide to choose the best type of Tether and the wallet that fits with it.
Frequently asked questions
What is the difference between Ethereum Tether and Tethertron?
Ethereum Tether and Tethertron are both stablecoins whose value is pegged to the US dollar. However, they run on different networks. Ethereum Tether runs on the Ethereum network and Tethertron runs on the Tron network.
Which type of tether is better?
The answer to this question depends on your needs and preferences. If you are looking for a larger and more established network, ERC20 Tether is a better option. If you are looking for lower transaction fees and higher transaction speed, Tether TRC20 is a better option.
Which type of Tether has lower transaction fees?
TRC20 Tether has lower transaction fees than ERC20 Tether. At the time of writing, the USDT Tron transfer fee ranges from $0.95 to $1.93 and the USDT ETH transfer fee is $1.766.
What is the best cryptocurrency wallet to store TRC-20 Tether and ERC-20 Tether?
The best wallets for USDT ERC-20 are Coinomi, MyEtherWallet, Ledger Nano X, Trezor Model T and CryptoWallet.com. The best cryptocurrency wallets to hold USDT TRC-20 also include Trust Wallet, Exodus, Cobo Wallet and Metamask.
