I bet that there are a lot of people who wonder what the difference is between ERC-20, BEP-20 and TRC-20. Is there any difference at all if it's, anyway, the same USDT stablecoin?Yes - oh Lord - those networks are really different with their own advantages and disadvantages. This knowledge of those differences matters when, for example, there is a need to decide which network to choose for USDT.
Let’s open up this subject ⚡
First, let's figure out what kind of network they are ⤵
Blockchains differ from each other in compatibility with various platforms and wallets, the speed of transactions, the degree of decentralization and the size of the commission for transactions.
Let’s take USDT as an example - the choice of network for USDT depends on what the stablecoin will be used for.
âž¡ ERC-20
ERC-20 tokens are among the most popular. They are supported by many exchanges and wallets, including Arctic Wallet. Also, such tokens are compatible with most DEXs, unlike TRC-20, since the vast majority of decentralized applications and platforms use the Ethereum blockchain.
The Ethereum blockchain is more decentralized than Tron and Binance Smart Chain⤵
Decentralization plays a role in the distribution of data and the dependence of the network on the performance of specific validators. Since Ethereum uses a huge number of validators, the failure of a few, or even hundreds of them, will not affect the network. The remaining validators will handle the load.
The risk of less decentralization lies in the control over the operation of the network by its creators. For example, for Binance Smart Chain, validators are chosen by Binance.
âž¡ TRC-20
TRC-20 tokens are popular due to fast transactions and low fees. USDT (TRC-20) is only supported on Tron-based protocols and DApps, but they are less popular than their Ethereum-based alternatives.
âž¡ BEP-20
The BEP-20 standard appeared after the creation of the Binance Smart Chain blockchain. BSC is another blockchain in the Binance ecosystem. The first network is called the Beacon Chain.
BSC was designed to bring smart contracts into the ecosystem. Binance Smart Chain is compatible with the Ethereum Virtual Machine (EVM), making it easy for developers to port their Ethereum-based projects to BSC.
Compatibility also enables easy integration of the blockchain with platforms and wallets developed on Ethereum.
As part of the use of USDT, the BEP-20 network is a solution to reduce transaction costs and reduce transaction times. At the same time, the token will be supported on platforms created on the basis of Ethereum.
Advantages and disadvantages of networks ⤵
So, in the end, ERC-20, BEP-20, and TRC-20 are all token standards used to create not only USDT but all other tokens on different blockchain platforms. While they have some similarities, they're created on different blockchains and are used within different ecosystems. But Arctic Wallet users have advantage and easily operate with all those three kinds of USDT.
But also wanna remind that those 3 networks are not the only ones on which token are based - there are more, e.g. AVAX C, SOL. They also differ from each other and have their advantages and disadvantages which are good to know about.
💡 As a matter of fact, Arctic Wallet supports USDT stable coin on 7 networks⤵
ERC20 (Ethereum), TRC20 (Tron), BEP20 (Binance BSC), ARC20 (Avax), MRC20 (Matic), SOL (Solana), XRC20 (IoTeX).
I kindly invite you to try our product and experience all its advantages by yourself 😉
