In recent years, many investors have entered the world of cryptocurrencies and successfully earned substantial profits. Today, cryptocurrency is an essential digital asset operating on blockchain technology—a digital ledger designed to securely store virtual assets.
Cryptocurrencies are broadly categorized into two types: coins and tokens. Crypto coins are native currencies of specific blockchains (e.g., Ether for Ethereum, Bitcoin for Bitcoin’s blockchain). Tokens, however, are created using existing blockchain token standards like TRC20 and ERC20.
What Is Tether (USDT)?
Tether (USDT) is a stablecoin pegged to the US dollar (1 USDT = $1.00). Launched in 2014 as "Realcoin," it mitigates crypto market volatility by maintaining a fixed value, making it a preferred choice for traders and businesses.
👉 Discover how Tether stabilizes your crypto portfolio
What Is a Token Standard?
A token standard defines the rules for creating, issuing, and deploying tokens on a blockchain. The most widely used standards are:
1. ERC20 (Ethereum)
- Blockchain: Ethereum
Features:
- High liquidity and interoperability with Ethereum-based apps (DeFi, NFTs).
- Slower transactions (~15 TPS) but highly secure.
- Average transaction fee: ~30 USDT.
2. TRC20 (Tron)
- Blockchain: Tron
Features:
- Faster transactions (~2,000 TPS) and lower fees (~2 USDT per transaction).
- Ideal for high-frequency, low-cost transfers.
- Uses Tron addresses (starting with "T").
Key Differences Between ERC20 and TRC20
| Feature | ERC20 (Ethereum) | TRC20 (Tron) |
|-----------------|------------------------|-------------------------|
| Network | Ethereum | Tron |
| Address Format | Starts with "0x" | Starts with "T" |
| Transaction Speed | Slower (~15 TPS) | Faster (~2,000 TPS) |
| Fees | Higher (~30 USDT) | Lower (~2 USDT) |
| Use Cases | DeFi, NFTs | High-volume transfers |
Pros and Cons
ERC20 Advantages
- High security and decentralization.
- Extensive DeFi/NFT compatibility.
TRC20 Advantages
- Near-instant transactions.
- Cost-effective for small transfers.
👉 Explore low-fee USDT transfers with TRC20
FAQs
1. Which is cheaper: ERC20 or TRC20?
TRC20 fees (~2 USDT) are significantly lower than ERC20 (~30 USDT).
2. Can I send USDT from ERC20 to TRC20?
No—they operate on different blockchains. Always verify the network before transferring.
3. Which network should I choose for DeFi?
ERC20 is better for Ethereum-based DeFi apps; TRC20 suits fast, low-cost trades.
4. Are TRC20 transactions reversible?
No, blockchain transactions are irreversible once confirmed.
5. Is TRC20 less secure than ERC20?
Both are secure, but Ethereum’s larger network offers stronger decentralization.
How to Get Started
Businesses can integrate USDT payments via crypto gateways like OKX, which supports both ERC20 and TRC20. Benefits include:
- Low fees (as low as 0.5%).
- Instant settlements.
- User-friendly dashboards.
Conclusion
Choose ERC20 for Ethereum-based projects (DeFi/NFTs) and TRC20 for affordable, rapid transactions.