Everything You Need To Know About USDT Networks

When you get involved in the cryptocurrency market, one of the first coins you meet is USDT. And before starting to interact with it, you probably wonder what blockchain network it operates on. Did you know that USDT works on more than 20 networks?

In this article, we will tell you in detail about the 7 most popular blockchain networks where USDT is supported and reveal their features.

What Is USDT?

USDT (Tether) is a stablecoin whose value is equal to the US dollar. The stability of USDT makes it a convenient payment method, moreover, the coin is often used to pay due to the wide variety of blockchains in which it operates. Being tied to different networks makes USDT one of the most versatile assets in the crypto sphere, but at the same time, it complicates the identity when making transactions.

In order to simplify these processes, USDT wallet addresses were developed. Those are the unique identifiers in the form of symbols and digits that host a particular token. In other words, it is a specially designed place that runs a smart contract that manages a token. So, when you make transactions with your USDT within the blockchain, you are interacting with its smart contract via the address.

Types of USDT Networks

As we’ve already mentioned, USDT operates on different blockchain networks, so it has different addresses and token standards. The seven most popular USDT networks are Ethereum (ERC-20), TRON (TRC-20), Binance Smart Chain (BEP-20), Solana, Avalanche, Polygon, and Arbitrum.

USDT on Ethereum, BSC, Avalanche, Polygon, and Arbitrum uses Ethereum-compatible (EVM) wallet addresses starting with "0x." However, each network has distinct USDT contracts, so make sure the correct network is selected to avoid transaction errors.

USDT addresses on TRON and Solana differ from EVM-compatible networks. Let's take a closer look at them in the table below.

The variety of blockchains where USDT is represented not only makes the coin a common payment method but also allows it to be used for interacting with DeFi products. At the same time, for those who have never used USDT for payment, this range of networks can make it difficult to choose. Therefore, before you start investing in the coin, you should consider the features of each network, which we tell you about below in this article.

Ethereum (ERC-20) Network

Ethereum is known as the second cryptocurrency after Bitcoin, but it is also a blockchain network. Here's the contract address for USDT on Ethereum: 0xdac17f958d2ee523a2206206994597c13d831ec7. That is just an example of an address; it differs with each coin. The transaction confirmation time for USDT on the ERC-20 network is approximately 1 to 10 minutes with an average fee of approximately $1-$3.

Let's take a look at the features of the Ethereum (ERC-20) network and its pros and cons.

The advantages of the Ethereum (ERC-20) network:

• ERC-20 tokens are used by a large number of dApps, wallets, and exchanges.

• The standard has a high level of liquidity, especially on decentralized exchanges.

• The Ethereum network is one of the most secure due to the large number of nodes.

The disadvantages of the Ethereum (ERC-20) network:

• The network is limited in scalability, so it can lead to slow transactions.

• High fees.

TRON (TRC-20) Network

In the TRON network, the technical standard is called TRC-20, and it is similar to the ERC-20 in the Ethereum network. Here's the contract address for USDT on Tron: TR7NHqjeKQxGTCi8q8ZY4pL8otSzgjLj6t.

The advantages of the TRON (TRC-20) network:

• The network fees are low when using TRC-20, which is why it is the most popular standard for USDT among users.

• Transactions on the TRON network are very fast due to a high bandwidth; confirmation time is about 1 minute.

• A large number of transactions can be processed at the same time within the network, so the number of supporting dApps is growing.

The disadvantages of the TRON (TRC-20) network:

• Regulatory issues: many criticize Tron for its high level of centralization, so it may not be supported in some countries or platforms.

BSC (BEP-20) Network

The Binance Smart Chain (BSC) network was developed by Binance as a high-performance blockchain that runs alongside the Binance Chain. In comparison with the latter, BSC utilizes smart contracts that make the network a versatile platform. The contract address for USDT BEP-20 looks like this: 0x55d398326f99059ff775485246999027b3197955.

The advantages of the BSC (BEP-20) network:

• BSC is compatible with other blockchains and tokens that can be transferred using a crypto bridge.

• Transactions with BEP-20 tokens have low fees, mostly due to the network’s high speed; confirmation time is 1-2 minutes.

• Binance support provides resources to network developers, so the BSC is actively growing an ecosystem of dApps and other services in the DeFi sphere.

The disadvantages of the BSC (BEP-20) network:

• Due to BSC's rapid growth, many DeFi projects have been attracted to it, and some of them have become subjects to hacks and bring risks to the network generally.

• Despite Binance's strong support, the BSC network is highly dependent on it, and any changes in the platform's operations affect the network's ecosystem as well.

Solana (SPL) Network

The SPL standard is designed to create tokens and network configurations in the Solana blockchain. It is similar to the ERC-20 one but optimized for the Solana system to be more efficient and cost-effective. For example, in addition to the Proof-of-Stake (PoS) mechanism that secures the network, Solana also uses Proof-of-History (PoH), which organizes transactions. Here's the contract address for USDT on Solana: Es9vMFrzaC1H6zzggBqqqEgakx4eCnmLmJtZNe5yW3sn.

The advantages of the Solana (SPL) network:

• The Solana network has a very high bandwidth compared to others, so transactions are confirmed almost instantly, from 3 to 5 seconds.

• Transaction fees with SPL tokens are minimal, which is why they are often chosen by users.

• The Solana ecosystem integrates with various dApps services and is rapidly expanding in the spheres of DeFi, NFT, and gaming.

The disadvantages of the Solana (SPL) network:

• The Solana network has met with work delays and outages several times, and this is a concern for some users.

• Low level of popularity and demand among users.

Avalanche (ERC-20) Network

The token of USDT on the Avalanche network is operated on one of the three main chains it consists of — the C-Chain. It is designed to work with smart contracts and is also fully compatible with the Ethereum network capabilities. The USDT C-chain token on the Avalanche network runs on the contractaddress 0x9702230A8Ea53601f5cD2dc00fDBc13d4dF4A8c7.

The advantages of the Avalanche (ERC-20) network:

• The network has a high-bandwidth and allows a large number of transactions per second, so it is suitable for high volume transactions.

• Network fees with C-Chain transactions are low, even in times of high demand.

• The network is interoperable and can interact with other blockchains, allowing smart contracts to be transferred from one network to another.

The disadvantages of the Avalanche (ERC-20) network:

• Avalanche consumes a lot of energy, which negatively impacts the environment.

• Due to its popularity, the network is subject to heavy congestion, which can slow down transaction confirmations.

Polygon (ERC-20) Network

Polygon Network is a solution for Layer-2 scaling and cost efficiency of Ethereum. It builds and connects blockchain networks compatible with the Ethereum one for creating optimized dApps. USDT tokens on this network operate on the contract address 0xc2132d05d31c914a87c6611c10748aeb04b58e8f, which helps manage and pay transaction fees. That is just an example of an address; it differs with each coin.

The advantages of the Polygon (ERC-20) network:

• Transactions’ confirmation on Polygon is fast, which is especially convenient for gaming and trading fields.

• The network utilizes both Ethereum security and proprietary measures to maintain a secure environment for ERC-20 transactions.

• Polygon has cross-chain compatibility, not only with the Ethereum network but also with others.

The disadvantages of the Polygon (ERC-20) network:

• Although the Ethereum network offers some advantages to Polygon, the latter can be affected by the former's difficulties, such as congestion and high fees.

• The network’s rapid growth has led to its fragmentation, due to some projects offering similar services and confusing users.

Arbitrum (ERC-20) Network

The Arbitrum network is another Layer-2 solution for scaling Ethereum, aimed at increasing speed and reducing costs. The network utilizes "Optimistic Rollups" technology to be able to process transactions off-chain and reduce the data amount. USDT in Arbitrum (ERC-20) runs at contract address 0xfd086bc7cd5c481dcc9c85ebe478a1c0b69fcbb9.

The advantages of the Arbitrum (ERC-20) network:

• The Arbitrum network has a high bandwidth, increasing transaction processing speeds and supporting more complex dApps.

• Unlike the Ethereum network, Arbitrum offers low gas fees, becoming an affordable ecosystem for large-scale transactions.

• This network is being actively deployed in the DeFi sphere, and many protocols and applications, in turn, spread within the network itself, increasing its capabilities.

The disadvantages of the Arbitrum (ERC-20) network:

• The network infrastructure seems complex for newcomers to Layer-2 solutions, which leads to a long learning process or a refusal to use it.

• Withdrawals within Arbitrum often experience delays of up to a week due to long fraud checks.

• As an innovative solution for Ethereum, the Arbitrum network depends on it and gets any problems that arise in Ethereum.

Best Network To Transfer USDT

Which network is the best to use for USDT transfers? The choice depends only on your preferences. You should choose the one based on speed, cost of transactions, and security of the network.

For example, if low fees are important to you, choose TRON, BSC, Solana, Arbitrum, or Polygon. For those who need transactions to be processed quickly, TRON, BSC, Solana, and Polygon are also best. For high security, it's best to select Ethereum itself.

Each USDT blockchain has its pros and cons, so before choosing a network to work with, you should study the features of each. We hope that our guide has helped you understand their main differences, and now you feel more confident in selecting a network to work with USDT.