Tethers offered on the platform of the Ethereum network are more popular due to the security and extensive support in deceralized programs, and Tethers based on the Tron blockchain are more popular due to the cheapness of transactions and the high speed of transfer between traders and investors.
Most of the users who choose to buy Tether to invest and carry out their transactions, after seeing the types of Tether in differe blockchains, they are faced with the question of how to choose the best network to store and transfer Tether. In this article, we describe the necessary tasks to choose the best network to maiain Tether.
Also read: What is Tether and how is it differe from dollars?
Types of tethers in differe blockchains
The Tether stablecoin is a token, unlike Bitcoin, Ethereum and digital currencies that are offered on their own blockchain. This means that it does not have its own independe blockchain and its units are stored on host networks.
The first Tether tokens were issued in October 2014 using the Omni protocol on the Bitcoin blockchain. The address of Tether wallets in the omni layer and the cost of its transactions are similar to Bitcoin transactions.
This stablecoin has then been released on Ethereum, Tron, Binance Smart China and recely layer 2 protocols including Arbitrum and Optimism. As the number of blockchains increased, Tether also coinued to offer USDT on differe networks, and according to data from DiFi Lama, it now supports 63 differe networks.
Ethereum Tether
Ethereum was the second Tether host after Bitcoin, and the supply of ERC20 Tether started on this blockchain in 2017. The address of Tether Ethereum wallets starts with “0x”, its transaction fee is usually around one dollar, which can increase when the network is busy, and transaction processing usually takes between 15 seconds and 5 minutes, depending on the gas paid. Currely, about 43% of the Tether supply, equivale to $35.83 billion, is on the Ethereum network.
Tethertron
Since 2019, Tether has launched its stablecoin on the Tron blockchain. Tron is the largest blockchain hosting this stablecoin, and TRC20 Tethers currely accou for 48.5% of the stablecoin’s $40.41 billion supply. Tron Ethereum wallet addresses start with “T”, the fee will be around $2, and each transaction will take up to 3 minutes to confirm.
Also read: What is Tron (TRX)?
Tether Binance Smart China
Binance Smart China is the third most popular network for trading and transferring Tether. The functionality of BEP20 Tether is very similar to Ethereum-based tokens, which is why it is possible to use it in deceralized applications. Note that Binance Smart China wallet addresses also start with 0x and are exactly the same as Ethereum. Binance Smart China Tether transaction fee is about $0.03 and each transaction will take less than 5 minutes to confirm.
Other blockchains
In addition to these three blockchains, which accou for more than 96% of the Tether supply, some users also use the Solana, Avalanche, Polygan, and Arbitrum networks due to their low fees and high speed of transactions.
Which network should we use Tether?
In general, to answer the question on which network to buy Tether, we should consider 4 features:
- Transaction fees
- Transfer speed
- Network liquidity
- Support of exchanges and wallets
In the table below, we have compared these features among the most widely used types of tethers in differe blockchains:
Considering the high volume of Tether liquidity in the Ethereum and Tron networks, it can be concluded that ERC20 Tether is probably more popular due to its security and extensive support, and TRC20 Tether is more popular due to the cheapness of transactions and the high speed of transfer between traders and investors.
It should be noted that these numbers are approximate and the Tether transfer fee in differe networks, especially Ethereum and Tron blockchains, depends on the network traffic situation. For example, while the Ethereum network fee has fluctuated between $1 and $1.5 over the past year, it increased to $3.8 in early May.
Tether transfer between differe networks
It is not possible to directly transfer Tether tokens between differe blockchains. There are generally 2 ways to transfer Tether between differe networks: using ceralized exchanges or deceralized ier-chain bridges.
Currely, most domestic digital currency exchanges support Tether from several differe networks. Suppose you wa to transfer your TRC20 tethers to another network. First, you must transfer your tokens to the desired exchange. Then, in the withdrawal section of your wallet, select the new network and eer the wallet address suitable for that network.
Remember to transfer Tether from your wallet to the exchange you need some native token of that blockchain (ETH for Ethereum and TRX for Tron) to pay the transaction fee.
In the second method, you must first choose a cross-chain bridge that supports the 2 source and destination networks you wa. Celer cBridge and Cross-Chain Bridge are two popular cross-chain bridges that support most of the popular Tether networks. Some projects like Polygan also have their own bridges to transfer Tether from Ethereum to their blockchain. After connecting your wallet to these protocols, it is enough to select the destination network and make the transfer.
Also read: Iroduction to blockchain bridges; Everything you need to know
Conclusion
Finally, you should choose the most suitable network for buying and maiaining Tether based on your preferences and considering factors such as transaction cost, transfer speed, security and stability of the network and its availability in various exchanges and wallets.
Typically, users who use Ethereum Tether prioritize the stability and security of the network. If transaction fees and transfer speed are importa to you, you can use Tron, Binance Smart China or Polygon networks. Arbitrum and Optimism are also among these networks as the most popular Ethereum layer 2 solutions.
