USDT TRC20 versus ERC20: Understanding the two variants of the stablecoin

Two variants of USDT circulate in the cryptocurrency market, deployed on different blockchain infrastructures. This duality can be confusing for many, but it makes sense once properly explained.

The basics: why multiple networks for the same currency?

USDT, this stablecoin pegged to the US dollar, does not operate on a single blockchain network. This is a fundamental point to remember: cryptocurrencies rely on blockchain technology for their storage and transmission, and the same digital currency can be issued and circulated on multiple different networks.

Think of this as multiple parallel payment systems: the same currency issued by different institutions, operating independently but producing the same value. This is exactly the case with USDT.

The two USDT networks

Tether, the company that issues USDT, has chosen two major blockchains for its deployment:

Ethereum (ERC20 network): USDT can circulate via the Ethereum blockchain, the most used decentralized network after Bitcoin. This version is referred to by the acronym USDT ERC20, where “ERC20” indicates the technical standard for tokens on Ethereum.

Tron (TRC20 network): USDT is also accessible via the Tron blockchain, owned by the same Tether entity. This variant is called USDT TRC20, with the TRC20 standard being the one for assets on Tron.

What is the concrete difference?

The main distinction concerns transaction costs. The Tron network has significantly lower fees than the Ethereum network, making USDT TRC20 much more economical for frequent transfers. That’s why many users prefer this version for their regular exchanges.

In terms of value, one unit of USDT TRC20 is exactly equal to one unit of USDT ERC20 – both represent one US dollar. The difference is purely technical and economic, not fiduciary.

How to tell them apart?

Each version has its own logo and specific visual identifiers. Before making a transaction, it is crucial to verify which version you are using to avoid routing errors. A selection mistake could complicate sending or receiving, hence the importance of this practical knowledge.