## TRC20 What is it: Understanding USDT Networks

You’ve probably encountered this question when depositing or sending USDT: which version to choose? **The truth is that USDT does not exist in just one format – it circulates across different blockchain networks, with the two main ones being Ethereum (ERC20) and Tron (TRC20).**

### The networks behind the same coin

Here’s the fundamental concept: **a stablecoin can be issued and transferred across multiple blockchains simultaneously.** If you think of USDT as a traditional physical currency, the different networks would be like two independent banking systems issuing the same money but with their own characteristics.

The **Tron network hosts what we call USDT TRC20** – the stablecoin circulating through this specific blockchain. On the other hand, when the Ethereum network is used, it’s called **USDT ERC20**. Both represent the same value but operate on different infrastructures.

### Why TRC20 is becoming increasingly popular

In practice, most traders prefer to use TRC20 for a simple reason: **significantly lower transaction costs.** Operations on the Tron network result in reduced fees compared to Ethereum, making TRC20 more advantageous for frequent transfers.

**You can easily identify which version you are using by the different logos** – each has a unique visual identifier. Additionally, when sending or receiving, it will always be explicitly shown whether it’s ERC20 or TRC20, preventing confusion.

### When taking action

When moving your USDT between wallets or exchanges, choosing TRC20 generally means paying less for transactions and having greater speed. ERC20 remains important for its integration with the Ethereum ecosystem, but for most simple USDT exchanges, TRC20 is the more practical option.