In recent years, many investors have entered the cryptocurrency market and achieved financial gains. As we advance, cryptocurrency has solidified its role as a vital digital asset operating on blockchain technology—a secure digital ledger designed to store virtual assets safely.
Cryptocurrencies are generally categorized into two types: coins and tokens. Coins are typically the native currency of a specific blockchain, such as Ether for Ethereum or Bitcoin for the Bitcoin blockchain. Tokens, on the other hand, are created using existing token standards on a blockchain.
What Is Tether?
Tether, also known as USDT, is a stablecoin cryptocurrency that operates on both the Bitcoin and Ethereum blockchains. Stablecoins like Tether are unique because they maintain a consistent value tied to a specific asset—in this case, the US dollar, with each USDT valued at approximately $1.00.
Originally named "Realcoin," Tether was founded in July 2014 by Craig Sellars, Brock Pierce, and Reeve Collins. Many cryptocurrency investors prefer Tether because it offers a more stable investment option in a highly volatile market, minimizing price fluctuations and preserving value.
Tether was developed to address two major challenges in the crypto space: high volatility and the difficulty of converting between fiat and cryptocurrencies. As a result, it has become one of the most reliable stable investment options available.
What Is a Token Standard?
A token standard refers to a set of rules governing token creation and management based on a specific protocol. In simple terms, a token standard is a framework for creating, issuing, and deploying new tokens on a particular blockchain.
ERC20 and TRC20 are two widely used token standards. Essentially, a token standard consists of mandatory guidelines set by a blockchain ecosystem that all participants must follow when creating new tokens. These guidelines define fundamental principles, such as how tokens interact with the network and the procedures for token issuance.
For example, developing a token using the ERC20 standard on the Ethereum blockchain allows developers to create and establish new tokens with ease. Every ERC20 token shares common properties regulated by the same rules.
The Tron blockchain offers a similar system, though not as predominant as Ethereum. TRX and Tether (USDT-TRC20) are among its most notable representatives.
Accepting Tether (USDT) as a payment method for products or services is a strategic decision that can help businesses avoid the volatility associated with Bitcoin and other cryptocurrencies. As a stablecoin pegged to the US dollar, Tether offers a reliable payment solution for companies of all sizes.
To start accepting Tether payments, businesses can integrate a cryptocurrency payment gateway into their website or online store. These solutions are user-friendly and allow merchants to accept various cryptocurrencies, including Tether, without requiring extensive coding knowledge.
What Is Tether ERC20?
Tether ERC20 is a version of USDT that operates on the Ethereum blockchain and adheres to the ERC20 token standard. Unlike some stablecoins issued on the Bitcoin blockchain, Tether ERC20 was developed for Ethereum, making it compatible with other tokens on this platform. This has made Tether ERC20 a popular choice among investors who prefer to keep their assets within the Ethereum ecosystem.
The term ERC stands for "Ethereum Request for Comments," and 20 is the proposal identifier. It is the most widely used standard for creating cryptographic tokens.
Creating tokens using the ERC20 standard offers several advantages:
- Easy token creation and deployment
- Fast transaction speeds
- Enhanced security
- High liquidity in the cryptocurrency market
- Global accessibility for creating ERC20 tokens
- Multiple use cases, including crowdfunding, staking, trading, and purchases
According to available data, there are currently over 450,000 ERC20 smart contract tokens in the crypto ecosystem. Popular ERC20 tokens include Tether, DAI, UNISWAP, CHAINLINK, Shiba Inu, and Wrapped Bitcoin.
What Is Tether TRC20?
TRC20 refers to the USDT stablecoin issued on the TRON blockchain network. As a technical token standard, TRC20 operates on the TRON blockchain using TRON addresses, meaning all transactions involving TRC20 occur on the TRON network.
The TRC20 token standard is a popular protocol for creating cryptographic tokens on the Tron blockchain. It includes all necessary guidelines and regulations for token creation. Essentially, TRC20 tokens share many features with ERC20 tokens, ensuring compatibility between the two. Additionally, TRC20 tokens facilitate highly secure transactions.
The creation of TRC20 tokens is supported by the Tron Virtual Machine (TVM). TRC20 tokens benefit from high energy and bandwidth levels, making them a preferred choice for startups and entrepreneurs creating cryptographic tokens.
Developing TRC20 tokens offers several benefits:
- Support for unlimited transactions
- Cost-effective creation
- Easy token exchange
- High scalability compared to other blockchains
- Peer-to-peer transaction capability
- High accuracy rate
- Good traceability
The cryptocurrency ecosystem features numerous TRC20 tokens in circulation. Some of the most popular include WINK, NOLE, TERC, SEED, LVH, IGG, BTT, and NoleWater.
Key Differences Between ERC20 and TRC20
Let’s examine the differences between ERC20 and TRC20 tokens based on several key factors.
- Network: ERC20 tokens are created on the Ethereum network (ETH), while TRC20 tokens are built on the Tron network.
- Address Style: One of the main differences between these two token types is their address format. ERC20 tokens use Ethereum addresses starting with "0x," such as 0xbd9e..., while TRC20 tokens use Tron addresses that usually begin with "T," such as T7zP19...
- Transfer Speed: TRC20 tokens generally have faster transfer speeds than ERC20 tokens because the Tron network has a higher transactions per second (TPS) rate than Ethereum.
- Fees and Cost: TRC20 tokens typically have lower transaction fees than ERC20 tokens. The Tron blockchain uses a different consensus mechanism than Ethereum, which helps reduce costs. On average, ERC20 transactions cost around 30 USDT, while TRC20 transactions cost approximately 2 USDT.
Summary
Tether is distributed across multiple blockchains, with Tron and Ethereum being two of the most prominent. These employ the TRC20 and ERC20 standards, respectively. Each has its own advantages and disadvantages.
Although both Tether ERC20 and TRC20 are stablecoins designed to maintain a value of $1.00, they operate on different blockchains with distinct address styles, transfer speeds, and fee structures.
Therefore, it’s essential to choose the token standard that best aligns with your business requirements. If you prioritize economical and faster transactions, TRC20 may be the better choice.
How to Get Started With TRC20 or ERC20
If you run a small or medium-sized business, accepting Tether—especially the TRC20 token standard—can significantly reduce operational costs and help you invest in cryptocurrency securely. Using a cryptocurrency payment gateway is a cost-effective solution for business owners, as one of the most significant advantages is low transaction fees. Unlike traditional payment methods like credit cards and bank transfers, some crypto payment processors charge as little as 0.5% per transaction. Additionally, they offer fast and reliable payment processing, ensuring you receive funds promptly.
Another advantage of using a crypto payment gateway for Tether transactions is ease of use. These platforms typically feature user-friendly interfaces that simplify payment management and transaction tracking. They also often provide excellent customer support, ensuring any issues or concerns are resolved in a timely manner.
👉 Explore secure payment solutions to start accepting Tether today.
Frequently Asked Questions
What is the main difference between USDT TRC20 and ERC20?
The primary difference lies in the blockchain they operate on: TRC20 is on the Tron network, while ERC20 is on Ethereum. This affects transaction speed, cost, and address format.
Which is faster, TRC20 or ERC20?
TRC20 generally offers faster transaction speeds due to the higher throughput of the Tron network compared to Ethereum.
Are TRC20 and ERC20 tokens compatible with each other?
No, they are not directly compatible. TRC20 tokens operate on the Tron blockchain, while ERC20 tokens are on Ethereum. Transfers between these networks require a bridge or exchange service.
Why are TRC20 transaction fees lower than ERC20?
The Tron network uses a different consensus mechanism that allows for cheaper transactions, whereas Ethereum often experiences higher gas fees during network congestion.
Can I use the same wallet for TRC20 and ERC20 tokens?
No, you need compatible wallets. ERC20 tokens require an Ethereum-supported wallet, while TRC20 tokens need a Tron-compatible wallet.
Is Tether TRC20 as secure as Tether ERC20?
Both are secure, but they rely on the security of their respective blockchains. Ethereum has a longer track record, while Tron offers high efficiency and lower costs.