USDT TRC-20 vs ERC-20: What Is The Difference

Understanding the difference between USDT TRC-20 and USDT ERC-20 tokens is an essential issue for crypto users. Working with one of these digital assets affects the transactions’ speed, commissions and efficiency of operations.

In this article, we explain the features of both standards TRC-20 and ERC-20 and take a closer look at the main differences between them. This information will definitely help you make a decision about which asset to invest in for improving your cryptocurrency management.

What Is USDT TRC-20?

USDT TRC-20 is a version of Tether issued on the TRON blockchain under the TRC-20 standard. It benefits from the high-speed performance of the TRON network — transactions are typically confirmed within 3–5 seconds and cost less than $0.01. Built on the TRON Virtual Machine (TVM), USDT TRC-20 supports seamless interaction with TRON-based smart contracts and dApps, offering efficient and scalable transfers ideal for frequent use and low-cost payments.

The TRC-20 protocol isn’t limited to USDT; it also supports other TRON-based tokens like TRX, JST, SUN, and WIN. One key convenience is that all TRC-20 tokens use the same wallet address for account— typically starting with a ‘T’ (e.g., T7z5...abcd). This means users don’t need separate addresses for each token. However, TRC-20 assets operate solely within the TRON ecosystem and may require cross-chain solutions to be used on other blockchains.

What Is USDT ERC-20?

USDT ERC-20 is a version of the USDT token issued on the Ethereum network. All transactions using this token are executed on the Ethereum blockchain and follow the ERC-20 standard, which is the most common protocol for creating smart contract-based tokens.

These tokens are managed through the Ethereum Virtual Machine (EVM), which enables operations like token transfers, balance management, and interaction with other smart contracts. ERC-20 tokens benefit from Ethereum’s broad infrastructure, including compatibility with a wide range of wallets and decentralized applications (dApps).

Thanks to Ethereum’s strong security and decentralization, USDT ERC-20 is widely used for trading and DeFi operations. However, users should be aware of potential drawbacks, such as high gas fees and network congestion, which can slow down transactions or increase costs.

TRC-20 Vs. ERC-20: Key Differences

As already mentioned, USDT effectively operates on the TRON and Ethereum blockchain networks, following the TRC-20 and ERC-20 token standards respectively. These modernized tokens both are stablecoins, but their functioning with the TRON and Ethereum networks has significant differences.

Cryptocurrency users should know these nuances and take them into account before integrating with these digital assets. Let’s see.

Blockchain Technology

The most important and obvious difference is that each token operates on diverse blockchain networks. USDT TRC-20 is supported by the TRON network, which emphasizes scalable transactions. This aspect makes the network a perfect choice for users who make transfers frequently. On the other hand, USDT ERC-20 issued on the Ethereum blockchain is lower in scalability but is not limited in smart contract functionality.

Transaction Speed

The TRON blockchain offers high throughput and fast transaction speeds: the network can typically process around 2,000 to 2,500 transactions per second, with each transaction confirmed within 1 to 3 seconds. In comparison, Ethereum’s base layer processes about 15 to 30 transactions per second, and transaction confirmation usually takes around 10 to 20 seconds, though it can be longer during network congestion. Therefore, in terms of transaction speed, the TRC-20 standard generally outperforms the ERC-20 standard.

Transaction Fees

Transaction fees on the Ethereum network for ERC-20 tokens tend to be higher than those on TRON. While ERC-20 fees can spike up to $5–$15 or more during peak times, the average fee usually ranges between $1 and $3. On the other hand, TRC-20 transaction fees remain very low, typically between $0.1 and $0.5, rarely exceeding $1 even at high network loads.

Ethereum’s high fees are connected with the large number of users and low performance. It leads to network overload and, as a result, high fees. TRC-20 standard deals with lower transaction costs on the TRON network as there are almost no overloads due to the high speed. It makes the token a cost-effective option, that is why many traders often transfer their USDT on the TRON network.

Network Compatibility

ERC-20 tokens work within the extensive Ethereum ecosystem, including dApps, various exchanges and services. These broad integrations make, for example, the USDT ERC-20 more acceptable in many contexts. As for USDT TRC-20, the token is designed specifically for the TRON ecosystem, so it is well supported there. But it may face limitations outside the network and while interacting with other platforms.

Understanding the differences between USDT TRC-20 and ERC-20 tokens is key to making a wiser choice related to your cryptocurrency investments. TRC-20 token standard provides high transaction speed and reduces costs, that is why it is useful for those who appreciate time and want to save money. On the other hand, ERC-20 token protocol provides users with extensive utilizing of coins and ensures transactions with a high level of security, that is also significant.

We hope this article has helped you understand the differences between USDT TRC-20 and ERC-20 tokens, and now you are able to make a rational choice of the digital asset or blockchain network that suits you the most. We recommend you to review popular questions that may be useful for you while working with this type of digital assets.

FAQ

Are TRC-20 and ERC-20 the Same?

TRC-20 and ERC-20 are both specific token standards of USDT based on smart contracts technology but working on totally different blockchain networks. TRC-20 is functioning within the TRON network. In turn, ERC-20 works on the Ethereum one.

Which USDT Is Better: TRC-20 or ERC-20?

The choice between tokens issued on the certain network depends on your preferences and priorities. If low fees and fast transaction speed are more essential to you, crypto on the TRC-20 standard will be your best option. If your priority is wider adoption and high security, then choose ERC-20 based ones.

How Do I Know If My USDT Token Is TRC-20 or ERC-20?

You can determine your USDT by its blockchain network base and used contract address. USDT TRC-20 operates on the TRON network and has addresses starting with "T". USDT ERC-20 is based on the Ethereum network and its addresses start with "0x".

Can I Transfer ERC-20 to TRC-20 Wallet?

Direct transfer of ERC-20 tokens to TRC-20 and vice versa is not possible because of the vital differences between those blockchains. However, you can use a cross-chain bridge option or a crypto exchange for converting them. In this case, ERC-20 tokens are exchanged for TRC-20 ones within the chosen platform, and then, they can be withdrawn to the desired wallet.

Keep in mind that each platform has its own terms of exchange and currency transfers between wallets. Mostly, it is connected with different amounts of fees. For example, Cryptomus doesn’t charge any commission at all when coins are transferred within the platform. Moreover, there is a wide range of tools, such as an auto converter and transaction status tracking that can make the process of interacting with crypto more pleasant and convenient.