Which network (blockchain) should I use for Tether (USDT) in 2024?

2024-04-29 00:00:00:

 Tether (USDT) is a digital currency (stablecoin) whose value is always pegged to the price of the US dollar, which protects it from price volatility in the cryptocurrency markets.

 Tether does not have its own blockchain, it is presented in the form of a token. The main difference between tokens and other cryptocurrencies is that tokens are created and hosted on a blockchain, whereas Bitcoin or Ethereum are the native currencies of their respective blockchains.
 Tether was launched in 2014; to date, a large number of networks have appeared to work with this asset. For this reason, a logical question arises: on which network should USDT be stored and transferred in 2024?

 In this article, we have collected the advantages and disadvantages of the five most popular networks.

Ethereum (ERC20)

 Tether on the Ethereum network (ERC20) was released in 2018. ERC20 tokens are stored and sent using Ethereum (ETH) addresses and transactions.
 The ERC20 network is supported by many centralized exchanges (CEXs) and wallets, and is fundamental to decentralized exchanges (DEXs), which specialize in trading cryptocurrencies and digital assets directly between users.
 When working with this network on centralized exchanges, it is necessary to take into account that crediting funds requires a large number of confirmations and this significantly affects the time of transactions. The main disadvantage is the high commissions for sending and exchanging on DEX.

Advantages:

• supported on most CEXs and wallets;
• DEX compatible.

Flaws:

• high transaction costs;
• increased transaction time.

Tron (TRC20)

 The launch of Tether on the Tron network (TRC20) occurred in 2019. TRC20 tokens are stored and sent using Tron (TRX) addresses and transactions.
 The TRC20 network is supported by almost all centralized exchanges and for a long time, in the absence of significant competition, it was preferred due to fast transactions and low sending fees.
 Due to a number of unsuccessful changes in calculation algorithms, sending commissions have increased significantly, for this reason in 2024 the choice of TRC20 is not as obvious as before. Another significant disadvantage is that the network is incompatible with decentralized applications and wallets based on Ethereum.

Advantages:

• supported on most CEXs and wallets;
• fast transactions.

Flaws:

• incompatibility with DEX;
• high commissions.

BNB Smart Chain (BEP20)

 The BNB Smart Chain (BEP20) network was created by the Binance exchange in 2020 as an alternative to the ERC20 network. The main token on the network is Binance Coin (BNB), which is used to pay fees.
 The main advantages when working with the BEP20 network are: high speed of transaction processing and low cost of paying commissions, as well as compatibility with decentralized applications and wallets based on Ethereum.
 

BEP20 is a centralized network, the validators for which are selected by the creator of this network - the Binance exchange. Thus, the viability of BEP-20 tokens depends primarily on the functioning and development of the Binance exchange, which is the main deterrent when working with BEP20. BEP20 network support is not available on most other centralized exchanges, making the process of exchanging BEP20 tokens much more difficult.

Advantages:

• low commissions;
• fast transactions;
• DEX compatible.

Flaws:

• dependence on the Binance exchange;
• not supported on most CEXs.

Sol (Solana)

 Tether became the first stablecoin on the Sol network (Solana), launched in 2020. To pay commissions and ensure the operation of the network, SOL (Solana) is used.
 Sol is a decentralized network that allows for fast and low-cost transactions. The high degree of decentralization makes this network attractive from a security point of view; many decentralized exchanges operate on Sol.

 The main problem for the Sol network is its technical condition, namely frequent malfunctions. Since its launch, the network has stopped operating for long periods of time, and this leads to a large number of risks, since you will not be able to manage your assets.

Advantages:

• low commissions;
• fast transactions;
• DEX compatible.

Flaws:

• unstable network operation.

TON (Toncoin)

 Tether appeared on the TON (Toncoin) network quite recently, in April 2024. The native token of the same name TON (Toncoin) is used to pay transaction fees.
Thanks to its high performance and scalability, the TON network provides fast, inexpensive and energy-efficient transactions.

 TON is an innovative project that is at the stage of adoption and implementation. By the time of the launch of USDT on the TON network: there is still no support for this network by the most popular multi-currency wallets and centralized exchanges. Poor tokenization limits the ability to exchange through decentralized applications.

 TON on paper is a kind of 21st century penicillin for the crypto industry, but the project’s ecosystem has not yet fully opened up: whether this will be the case on paper only time can tell.

Advantages:

• low commissions;
• fast transactions.

Flaws:

• underdeveloped ecosystem.

Which network to choose?

Only you can answer this question based on the described advantages and disadvantages of each network; you must choose a network based on the purposes of purchasing USDT: do you simply need to store funds, pay for goods or services, trade on centralized or decentralized exchanges.

You can buy USDT in any of the networks on our website.

This article is not a call to action and does not constitute individual investment advice.