Understand the comparison of transaction fees and transaction times between TRC20 and ERC20

If you are trading the cryptocurrency USDT, you should know that the handling fee for withdrawing via TRC20 is very low, and some exchanges even offer fee-free discounts. But what does TRC20 actually refer to?

This article summarizes what is TRC20? Comparison between TRC20 and ERC20/TRC20 transaction time/TRC20 transaction fee, I hope it can help everyone understand the operating principle of TRC20-USDT that you often see!

What is TRC20?

I initially thought that TRC20 was some kind of remittance channel, but this is not entirely correct. The following are three questions and answers I had when understanding TRC20.

Q1: What exactly is TRC20?

In a narrow sense, "TRC20" is the specification/protocol for issuing cryptocurrency on the Tron blockchain. Anyone can issue currency on the Tron chain according to this specification.

Tether (USDT) is issued by Tether on the Tron blockchain under the TRC20 protocol. Therefore, the common Tether is also called TRC20-USDT.

So, "TRC20" refers to the design specification/protocol of the currency on the Tron chain, and "TRC20-USDT" is the USDT currency issued on the Tron chain according to the TRC20 protocol.

Q2: Why are there three protocols (TRC20/ERC20/Omni) to choose from when withdrawing or depositing USDT?

Because Tether, the company that issues USDT, issues USDT coins according to its currency issuance protocols on three blockchains.

These three blockchains, currency issuance protocols and currencies are:

• Tron, in accordance with the TRC20 protocol, issues TRC20-USDT
• Ethereum, According to the ERC20 protocol, ERC20-USDT
• is issued on the Bitcoin network, and according to the Omni protocol, Omni-USDT

is issued. Therefore, when you want to withdraw or deposit USDT, you can freely Choose the appropriate chain based on your requirements for transmission speed, handling fees, and security. The next section of the article introduces the differences between the three chains.

Q3: Why do you not have to choose which chain to buy USDT when purchasing USDT on a centralized exchange, but when you want to withdraw or deposit USDT to other wallets or exchanges, you must choose which chain to buy. Should we go for TRC20, ERC20 or Omni?

Because the cryptocurrency transactions on centralized exchanges are actually just the centralized exchange accounting in its database, and no transactions are actually generated on the blockchain network.

However, when you want to withdraw or deposit cryptocurrency to other wallets or exchanges, you must use the blockchain network, so you must choose to withdraw or deposit USDT. Which protocol/chain (TRC20, ERC20 or Omni).

Remind everyone that when withdrawing or depositing funds, you must pay attention to whether the wallets or exchanges on both sides support the same protocol/blockchain. Otherwise, the cryptocurrency may be lost during transmission, which is very difficult to handle. , if you ask the exchange to help salvage it, you will have to pay additional handling fees, and recovery is not guaranteed, so don’t be careless!

## Transaction time/fee/security comparison of TRC20, ERC20 and Omni

TRC20, ERC20, Omni features

TRC20-USDT: The USDT currency issued by Tether on the Tron chain in accordance with the TRC20 protocol. The address starts with "T".
• ERC20-USDT: The USDT currency issued by Tether on the Ethereum chain according to the ERC20 protocol, with an address starting with "0x".
• Omni-USDT: The USDT currency issued by Tether on the Bitcoin chain, with an address starting with "1 or 3".

TRC20, ERC20, Omni Comparison

Transaction speed (from fast to slow): TRC20 > ERC20 > Omni
• Transaction fee ( From low to high): TRC20 > ERC20 > Omni
• Transaction security (from high to low): Omni > ERC20 > TRC20

These three chains can There is a lot of introduction and comparison. I will write another article "Detailed Comparison of Three Versions of USDT" to introduce it in detail later.

Speaking of TRC20 alone, its transaction speed is the fastest, usually within 1 minute or even a few seconds. The transaction fee is the lowest, and most of them are free of charge or only cost about 1 US dollar.

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