Distinguishing between token standards, especially for frontrunners such as ERC20 and TRC20, is crucial for those who deal with crypto. Here, we will have a closer look at both these standards, discuss their pros, cons, and main features, and check whether one can switch between them and how one can do it.
TRC20 vs ERC20: An Overview
Many cryptocurrencies are issued on different blockchains, and each blockchain has its own token standards. ERC20 is a standard of the Ethereum blockchain, and TRC20 is a standard of the Tron blockchain. For example, USDT is a stablecoin issued by Tether on various blockchains, including Ethereum and Tron. So, USDT ERC20 means that the coin runs on Ethereum, and USDT TRC20 implies that the coin runs on Tron.
Introduction to TRC20 Tokens
TRC20 is the token standard for the TRON blockchain. It defines the rules for creating and managing digital tokens and specifies essential functions like transfers, approvals, and balance checks, ensuring consistent behavior across all tokens on the network.
The standard outlines key parameters, including total supply, balance management, transfer mechanisms, approval processes, and allowances. It also standardizes token attributes such as name, abbreviation, and precision. By adhering to TRC20 contracts, tokens gain interoperability within the TRON ecosystem, thus enabling smooth exchanges and transfers.
Understanding Tron Blockchain
Tron (TRX) is a decentralized blockchain platform launched in 2017 by the Tron Foundation. Its primary objective was to create a more efficient layer-one blockchain than existing networks. Since its inception, Tron has achieved notable success in terms of developer activity and user adoption.
The main Tron’s features are:
- High throughput: The Tron network can process up to 2,000 TPS.
- High scalability: The Tron’s architecture is designed to support a large user base. The flexible smart contract system allows for the most diverse deployment options that, in turn, allow to accommodate a wide range of dApps and use cases.
- High availability: The robust and reliable network infrastructure that employs the delegate proof-of-stake consensus mechanism allows for an effective reward distribution system.
Explaining ERC20 Tokens
The ERC20 token standard is a key component of the Ethereum ecosystem. It has become the most widely adopted token standard in the cryptocurrency space and is used by numerous major exchanges and blockchain projects.
ERC20 tokens are created and operate on the Ethereum network, leveraging its robust infrastructure and smart contract capabilities. This standard is renowned for its reliability, versatility, and longevity, having stood the test of time since its introduction. The widespread acceptance of ERC20 tokens has significantly contributed to the growth of decentralized finance (DeFi) and the broader Ethereum ecosystem, providing a consistent framework for token creation and interaction.
Overview of the Ethereum Blockchain
Ethereum has revolutionized the blockchain industry by introducing the concept of a smart contract platform. Beyond its native cryptocurrency (ETH), Ethereum's blockchain supports creating and managing other digital assets, known as "tokens," through its ERC-20 compatibility standard.
This token-hosting capability has become Ethereum's most prevalent use case. Thousands of ERC-20-compliant tokens have been launched on the platform, showcasing its versatility and widespread adoption.
USDT ERC20 vs TRC20: Pros and Cons
USDT is one of the most notable tokens that utilizes both TRC20 and ERC20, along with other popular standards. Thus, we will compare TRC20 vs ERC20 by using USDT as an example of a token that runs on both blockchains.
USDT TRC20 Pros
USDT TRC20 offers the following advantages:
Lower transaction costs: The Tron network's efficient energy and bandwidth system significantly reduces fees compared to other blockchain networks.
High transaction speed: USDT TRC20 benefits from Tron's ability to process transactions rapidly, making them suitable for applications that require high throughput.
Robust security: Built on the Tron blockchain, USDT TRC20 inherits its secure infrastructure, ensuring high-level protection for transactions and smart contract executions.
Wide ecosystem adoption: These tokens are extensively used within the Tron community, which ensures firm support and seamless integration with various decentralized applications (dApps) and services in the Tron ecosystem.
USDT TRC20 Cons
USDT TRC20, while offering several benefits, also has some limitations.
Network specificity: These tokens are confined to the Tron blockchain, which, despite its growth, may not have the same level of adoption as Ethereum. This can potentially restrict interoperability with applications on other blockchain networks.
Technical adaptation: Developers new to the Tron ecosystem may face a learning curve. Familiarizing themselves with Tron's unique architecture, development tools, and best practices can require additional time and resources.
USDT ERC20 Pros
USDT ERC20 offers several key advantages compared to USDT running on other blockchains.
Broad acceptance: The widespread adoption of the ERC20 standard facilitates easy exchange of these tokens and seamless access to various services within the Ethereum ecosystem.
Strong developer community: A large, active community supports the development and innovation of ERC20 tokens and related services, fostering continuous improvement and problem-solving.
Interoperability: ERC20 tokens can easily interact with other smart contracts and decentralized applications (dApps) on Ethereum. It enables the creation of complex ecosystems of decentralized services.
Robust security: These tokens leverage Ethereum's secure network, which protects against fraud and unauthorized transactions.
USDT ERC20 Cons
After the last network upgrades, such major issues as high energy consumption, scalability issues, slow transaction processing speed, and high fees were resolved. Thus, the only disadvantage for developers is the network complexity and the need to understand the process of programming smart contracts on Ethereum.
USDT TRC20 vs ERC20: Key Features
When comparing USDT ERC20 vs TRC20, features such as transaction speed and gas fees are expected to be mentioned. However, these are not the only features to consider when making a choice between these standards.
USDT TRC20 vs ERC20 fees
USDT TRC20 offers a significant cost advantage over its ERC20 counterpart in transaction fees, commonly known as gas fees. This difference can be very high, especially when the Ethereum network is congested.
USDT ERC20 vs TRC20 transaction speed
The Tron blockchain can process up to 2,500 transactions per second, while the Ethereum network can boast the transaction processing speed of 120 transactions per second.
Interoperability
Due to the isolated nature of both blockchains, moving USDT TRC20 to ERC20 and vice versa is possible through third-party services. On LetsExchange, you can swap USDT TRC20 to ERC20 or any other supported standard within a couple of clicks.
All you need to do is select USDT TRC20 in the You Send field and USDT ERC20 – in the You Get field. The platform charges some fees for the swap; this is why the sum to receive will be slightly lower than the sum that you are sending.
After that, you add a receiving wallet to get your swapped USDT ERC20. Make sure this wallet supports Ethereum.
Send USDT TRC20 to the address provided by the platform, and wait till you receive your USDT ERC20 tokens in your wallet.
Conclusion
ERC20 and TRC20 are the most popular token standards that play an important role in creating tokens across the Ethereum and Tron blockchains. While TRC20 tokens offer increased cost-efficiency, ERC20 tokens boast greater compatibility, speed, and flexibility and are supported by almost all exchanges and wallets.
FAQ
What is the difference between ERC20 and TRC20?
ERC20 is a token standard of the Ethereum blockchain, and TRC20 is a token standard of the Tron blockchain. For example, USDT can run on Ethereum, and its standard is ERC20, and on the Tron network, its standard is TRC20. Some believe that TRC20 and ERC20 USDT are the same coin. However, this is incorrect because, even though Tether issues USDT in the first and the second cases, these tokens are issued on different blockchains by applying different codes.
TRC20 vs ERC20: which is better?
There is no better or worse standard. Both ERC20 and TRC20 are popular among crypto holders and offer different benefits. So, ERC20 offers more versatility, while TRC20 has lower gas fees and is more suitable for beginners.
Is TRC20 the same thing as Ethereum?
No, TRC20 is not the same thing as Ethereum. TRC20 is a token standard of the Tron blockchain and serves to create and manage digital tokens within the Tron ecosystem.
How many networks does the USDT have?
Numerous blockchains, including Arbitrum, Base, Ethereum, Tron, EOS, Algorand, Solana, TON, and others, support USDT. You can swap USDT across various blockchains by using the LetsExchange cross-chain swap functionality.
Can I transfer TRC20 to the ERC20 wallet?
Transferring a TRC20 token to an ERC20 wallet is impossible due to the differences in blockchains, but you can do it using LetsExchange. The platform supports cross-chain swapping functionality, and you can switch your tokens between various blockchains.