If you’re looking to get involved in crypto, decentralized assets, blockchain, or anything related, understanding the fundamentals of blockchain technology is essential.
Additionally, if you are financially engaged in this space, having at least a basic knowledge is crucial to help prevent scams.
A key aspect of this technology is the token standards and networks used for transactions and content distribution. These standards dictate how tokens operate on their respective blockchain networks and essentially form the backbone of blockchain.
Two of the most commonly used blockchains in the crypto world are Ethereum and TRON. These two blockchains each use a specific standard for creating and managing tokens: the ERC20 standard and the TRC20 standard.
If this all sounds a bit complicated to you, don’t worry; I’ll explain everything there is to know about things like “What is TRC20?”, “What is ERC20?”, ERC-20 vs. TRC-20, and which one of TRC vs. ERC is right for you.
So, let’s start off by answering the question, what is TRC20, and what is ERC20?
What Is ERC20?
ERC20 stands for Ethereum Request for Comment 20, a technical standard for creating and issuing tokens on the Ethereum ERC20 network blockchain, often compared to the TRON TRC20 network in ERC20 vs. TRC20 discussions. This standard basically defines a set of rules and functions for any token on this blockchain so that it’s compatible with wallets, exchanges, and dApps on the network.
While the ERC20 standard provides the technical framework for developers to create and manage tokens on Ethereum, it operates within the larger ERC20 network (Ethereum) network, which is where the real action and the real debate of TRC vs. ERC happens.
The Ethereum network is a decentralized blockchain that powers not only ERC20 tokens but also smart contracts, decentralized applications (dApps), and financial transactions.
The ERC20 network has been instrumental in the growth of decentralized applications (dApps) and Initial Coin Offerings (ICOs). By providing a standardized protocol, developers can create new tokens that are easily integrated with wallets and exchanges. This flexibility, combined with the robust infrastructure of the ERC20 network, has made ERC20 tokens widely popular.
For everyday crypto users and traders, it’s the ERC20 network (Ethereum) they interact with rather than the underlying technical standard. This network allows for the seamless transfer of ERC20 tokens between wallets, exchanges, and platforms. If you’re looking to get into crypto trading, check out our post on the best crypto presales for 2025.
Essentially, the ERC20 network (or, more accurately, the Ethereum network) serves as the infrastructure where all the tokens built on the ERC20 standard function. It’s responsible for handling the security, validation, and consensus processes that keep transactions transparent and reliable.
What Is TRC20?
Now that you have an understanding of ERC20, let’s answer the question of what is TRC20. Like ERC20, TRC20 is the standard for creating and transferring tokens on the TRON blockchain, which is a massive factor in the TRC-20 vs. ERC-20 comparison I’ll make later.
The TRC20 standard sets specific guidelines that allow developers to create tokens that can be transferred between users, tracked, and integrated into other applications. These functions include specifying the total supply of tokens, transferring tokens between users, and approving transactions through smart contracts.
I mentioned smart contracts when answering what is ERC20; smart contracts are self-executing contracts with the terms of the agreement directly written into code. These contracts automatically execute and enforce the agreement when certain conditions are met, eliminating the need for intermediaries.
Smart contracts are often used in decentralized applications (dApps) and can handle things like financial transactions, asset transfers, or token management. In the context of ERC20 and TRC20 tokens, smart contracts govern how these tokens are created, transferred, and managed on their respective blockchains.
While the TRC20 standard outlines the technical aspects of token creation and management, it operates within the broader TRON network—a decentralized blockchain that powers not just TRC20 tokens but also smart contracts, dApps, and other financial transactions.
The TRON network was designed with the goal of high throughput, aiming to provide fast and cost-efficient transactions. In contrast to Ethereum, TRON is known for its higher scalability and lower transaction fees, which makes TRC20 tokens particularly attractive for use cases requiring frequent or high-volume transactions.
TRC20 has fueled the growth of decentralized finance (DeFi) applications on TRON, as it allows for the creation of fungible tokens that can be seamlessly integrated into lending platforms, staking services, and other DeFi products.
Tether (USDT), one of the most widely used stablecoins, operates on multiple blockchain networks, including Ethereum as an ERC20 token. USDT ERC20 is a version of Tether that adheres to the ERC20 standard, which means it’s fully integrated with the Ethereum network.
This means It benefits from Ethereum’s robust security, decentralization, and compatibility with a wide range of wallets and decentralized applications (dApps). However, the high gas fees on Ethereum can make transferring USDT ERC20 costly, especially during periods of network congestion.
Despite these high fees, USDT ERC20 remains popular due to its wide adoption across exchanges and platforms like Binance, Coinbase, and Uniswap. Moreover, it’s particularly useful for traders and users who value security and decentralization, making it a solid choice for long-term storage and larger transactions, even though faster and cheaper alternatives, such as TRC20 versions, are gaining traction.
ERC20 vs. TRC20: Ethereum vs. TRON
While both of these standards are similar in function, they’re quite different practically. That’s why it’s important to know what each one offers when debating TRC vs. ERC, as the networks they function on have various benefits and drawbacks.
The most important aspect when comparing TRC20 vs. ERC20 is the networks they use. On the one hand, ERC20 tokens are native to the Ethereum blockchain, which is one of the most established and decentralized platforms in crypto space.
I’ve mentioned being decentralized quite a bit in this article, but what does it mean? Well, since control is spread across a large number of nodes in a decentralized structure, it’s extremely difficult for any single entity or group to take control of the network.
This means that the ERC20 network (Ethereum) offers a much higher level of security, censorship resistance (the inability of a central authority to block a transaction), reliability in terms of lack of downtimes, transparency for verification and validity, and ecosystem growth.
On the other hand, TRC20 is built on the TRON network, which is much less decentralized in comparison to Ethereum, as it relies on only 27 validators rather than Ethereum’s 500,000+. While this lower number of validators makes TRON TRC20 much more prone to censorship and security, It also allows TRON TRC20 to process transactions faster and cheaper.
So, how does this difference in speed and costs translate into your crypto transactions? Very tangibly, as transactions on the ERC20 network (Ethereum) take anywhere from 1 to 10 minutes, depending on the gas fee paid and the network’s activity. During periods of high traffic, confirmation times can increase to 15 minutes or more.
The same transaction only takes around 30 seconds to 2 minutes on the TRON TRC20 network. As for transaction fees, when comparing ERC20 vs. TRC20, the difference is massive. The ERC20 network (Ethereum) is known for its significantly high gas fees (transaction fees). This is due to its high number of validators, which leads to more gas (computational power) for each transaction on the ERC20 network.
The difference is quite palpable in terms of USDT ERC20 vs. TRC20 transaction fees, as a $100 USDT (Tether) transfer on USDT ERC20 can cost anywhere between $10-$50, while on TRC20, the same $100 USDT transfer costs as little as $1 or less.
Lastly, when discussing ERC20 vs. TRC20, it’s important to talk about compatibility and interoperability. Since ERC20 has been around for far longer than TRC20, ERC20 tokens are the most widely adopted token standard across the blockchain ecosystem.
Almost every wallet, including Trust Wallet, Ledger and Trezor, MyEtherWallet (MEW), etc., and almost every exchange, such as Binance, CoinBase, Uniswap, Kraken, SushiSwap, etc., fully supports ERC20 tokens.
However, while TRC20 is growing and becoming more universally supported, it still lacks support from popular wallets such as MetaMask, MEW, Ledger Live, etc., exchanges like Uniswap, SushiSwap, CoinBase, etc., and even Opensea, the largest NFT marketplace.
Ultimately, it comes down to what’s important when debating ERC20 vs. TRC20. If you value security, censorship resistance, and the benefits of a highly decentralized network, ERC20 on the Ethereum blockchain is the stronger option. It offers more reliability and ecosystem support, with almost every major wallet, exchange, and dApp backing it.
On the other hand, if speed and low transaction costs are your main concerns, the TRON TRC-20 network is ideal. Its faster processing times and lower fees make it a practical choice for frequent or smaller transactions, even though it may not have the same level of decentralization or broad support as ERC-20.
Final Thoughts
If you’re still on the fence about choosing ERC20 vs. TRC20, here’s a much simpler explanation of their differences. Think of TRC vs. ERC as two cities connected by different bridges.
The erc20 network bridge is older, has more traffic, and sometimes experiences congestion, leading to slower travel times and higher tolls (transaction fees). The trc20 network bridge is newer, less congested, and has lower tolls, allowing for a smoother ride.
But which bridge should you take? It depends on where you’re headed and what’s important to you. Do you prioritize cost, speed, or decentralization in the ERC20 vs. TRC20 comparison? Do you prefer the well-trodden path with more amenities along the way or the faster route with fewer stops?
That said, In the TRC vs. ERC debate, there’s no one-size-fits-all answer. Both ERC20 and TRC20 offer unique advantages and have their own trade-offs. The ERC20 network provides a mature, widely supported platform with a vast ecosystem, while the TRC20 network offers faster transactions and lower fees.
At the end of the day, your choice between TRC-20 vs. ERC-20 should meet your specific needs, whether that’s cost efficiency, network support, or development considerations.
FAQ
What is the main difference between ERC20 vs. TRC20?
ERC20 is the standard for tokens on the Ethereum blockchain, while TRC20 is used for tokens on the TRON blockchain. ERC20 offers higher security, decentralization, and ecosystem support, whereas TRC20 provides faster transaction speeds and lower fees.
Which platforms support ERC20 vs. TRC20 tokens?
ERC20 tokens are supported by almost every wallet and exchange, including Trust Wallet, Ledger, MyEtherWallet (MEW), Binance, and Coinbase. TRC20 tokens, while growing in support, are still not as universally accepted by popular wallets like MetaMask and exchanges like Uniswap.
How long does a transaction take on ERC20 vs. TRC20?
Transactions on the ERC20 network (Ethereum) typically take anywhere from 1 to 10 minutes, depending on network congestion and gas fees. In contrast, transactions on the TRC20 network (TRON) are much faster, usually taking around 30 seconds to 2 minutes.
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