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TRC20 vs. ERC20: Key Differences and Use Cases

Cryptocurrency Editor

Camila Karam

Cryptocurrency Editor

Camila Karam

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Camila is a Crypto Editor at Cryptonews, where she crafts research-driven, value-packed evergreen content on cryptocurrencies, exchanges, and other Web3 topics. She is passionate about gathering...

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Last updated:

April 24, 2025

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TRC20 and ERC20 are token standards used on the Tron and Ethereum blockchains. These standards determine how the tokens operate within their own networks, ensuring interoperability and full integration with wallets, exchanges, and smart contracts.

Both standards are widely used for issuing tokens, so investors, developers, and blockchain users need to understand how they work. When you know TRC20 and ERC20 standards, you can make informed decisions about transaction costs, network speeds, and compatibility when trading and holding your assets.

Key Takeaways

TRC20 is a token standard on the Tron blockchain, known for low fees and fast transactions.
ERC20 is a widely used Ethereum standard offering robust security and compatibility within Ethereum’s extensive ecosystem.
ERC20 transactions require gas paid in ETH, while TRC20 transactions often have lower fees and use TRX for gas.
TRC20 is best for fast, low-cost token transfers and dApps on the Tron network with high throughput.
ERC20 is best for secure, widely-supported Ethereum tokens and is ideal for DeFi, NFTs, and interoperable smart contract applications.

What Are Token Standards?

Token standards are a group of predefined rules and protocols for creating and managing tokens on a blockchain. These standards establish the frameworks developers follow to ensure that tokens can interact with wallets, exchanges, and smart contracts in their ecosystem.

The standards aim to promote compatibility and interoperability inside blockchain networks. These rules facilitate developers’ building decentralized applications (dApps) and users’ trading and using tokens.

For example:

ERC20 on Ethereum: One of the earliest and most widely adopted standards, ERC20 defines a set of functions for creating fungible tokens. It underpins a massive ecosystem of tokens and decentralized finance (DeFi) applications.
TRC20 on Tron: Inspired by ERC20, this standard creates fungible tokens on the Tron blockchain. It supports fast transactions and low fees and is often favored for token transfers.

TRC20 and ERC20 Overview

TRC20 and ERC20 are popular Tron and Ethereum blockchain token standards designed for creating and managing fungible tokens.

While TRC20 focuses on speed and low costs, ERC20 benefits from Ethereum’s vast ecosystem and strong security. The following sections will explore the details of these standards.

TRC20 on the Tron Blockchain

TRC20 is a token standard on the Tron blockchain, supported by the Tron Virtual Machine (TVM). It sets the rules for creating and managing fungible tokens, ensuring their compatibility with the Tron ecosystem.

The main objective behind TRC20 is to offer a faster and more cost-effective alternative to token transactions on Ethereum, including high throughput, rapid transaction processing, and low transaction fees.

ERC20 on the Ethereum Blockchain

The ERC20 standard is widely used in the Ethereum blockchain, taking advantage of its whole dApps ecosystem, developer tools, and community support. ERC20 was one of the first standards for fungible tokens and has become an essential part of Ethereum’s token economy.

Its main feature is the high-security standard, in which ERC20 tokens inherit the Ethereum network’s safety against fraud and tampering. Also, almost every wallet, exchange, and blockchain app supports this kind of token, making it very versatile and interoperable.

ERC20’s adoption has been critical to Ethereum’s growth as a hub for DeFi, NFTs, and other blockchain innovations, offering unmatched accessibility and reliability.

Key Differences Between TRC20 and ERC20

This section discusses the main differences between TRC20 and ERC20. To start, here’s a summary of their main ones:

Aspect	TRC20	ERC20
Blockchain Platform and Technology	Tron blockchain, supported by Tron Virtual Machine (TVM)	Ethereum blockchain, supported by Ethereum Virtual Machine (EVM)
Transaction Speed	Generally faster, supporting ~120 transactions per second (TPS) with 57-second finality	Slower, processing ~12 transactions per second with 960-second finality
Transaction Fees	Vary between $0.20 and $3.40	The average is currently at $0.12, but depending on gas fees, it can reach $50
Network Compatibility and Ecosystem	Growing ecosystem with a focus on efficiency	Vast ecosystem with great adoption
Security and Stability	Secure but less decentralized due to DPoS	Highly secure and decentralized due to PoS

ℹ️ Table data explanation and sources

The gas fees in the table reflect the latest average transaction costs at normal speed.
The average TPS and finality time values are based on real-time data.
All data was updated on April 25, 2025.
Sources: Bitbond, Chainspect, and Coin Wallet.

Blockchain Platform and Technology

As mentioned, TRC20 tokens operate inside the Tron blockchain, taking advantage of its efficient and cost-effective infrastructure. They have significantly lower transaction fees and faster processing times, making them an excellent choice for quick and inexpensive transfers.

Conversely, ERC20 tokens are built on the Ethereum blockchain, which is supported by its security and reliability. These tokens are compatible with multiple dApps, wallets, and services and offer extensive support and versatility. This is the best choice if you are looking for the most standard choice, despite its higher transaction fees and slower processing times.

Transaction Speed

Regarding transaction speed, TRC20 has a maximum recorded capacity of up to 272 TPS. This high volume allows faster transaction processing, with block time averaging around 57 seconds.

ERC20 tokens, however, can process a maximum of 62 transactions per second and have an average transaction finality of about 960 seconds, adding a new block every 12 seconds.

Transaction Fees

TRC20 is known for its low transaction fees, but they vary based on factors like the recipient’s wallet status; for instance, sending USDT to an empty wallet may result in higher fees, up to 27.25 TRX (approximately $6.54 as of April 25, 2025).

The fees for the ERC20 tokens are typically higher, but are currently lower due to bearish market activity. Fees can escalate substantially during high demand, sometimes exceeding $50 per transaction. These changes occur mainly due to Ethereum’s gas fee structure, where the fees go up when the network is busier.

Network Compatibility and Ecosystem

Due to its construction on the Tron ecosystem, TRC20 has a more limited adoption. Compared to Ethereum, it usually supports fewer decentralized finance (DeFi) applications, as it focuses more on high-speed transactions rather than a broader range of dApps.

ERC20, on the other hand, is one of the most supported token standards. It is compatible with almost every wallet and exchange. It is also essential to most DeFi applications, decentralized exchanges (DEXs), and smart contracts. Despite setbacks, in 2025, it remains the dominant platform for innovation and interoperability.

Security and Stability

TRC20 and ERC20 tokens offer similar functionality but differ significantly in security and scalability. ERC20 runs on Ethereum, which benefits from a robust, battle-tested security model with thousands of validators and years of audited smart contracts.

However, that same security comes with trade-offs. Ethereum is less scalable on Layer 1, with lower TPS and high fees under load. Layer 2s help, but they introduce their complexity and trust assumptions.

TRC20 tokens run on Tron, which is much more scalable natively. That makes TRC20 ideal for high-throughput apps like stablecoin transfers. However, Tron’s consensus is delegated proof-of-stake with just 27 super representatives, which means lower decentralization and potentially higher validator collision risk.

In short, ERC20 offers higher decentralization and stronger security assumptions, while TRC20 prioritizes throughput and cost-efficiency. Choosing between them often depends on whether your use case favors trust minimization or performance at scale.

Use Case Comparison: When to Choose TRC20 vs. ERC20

Choosing between TRC20 and ERC20 often comes down to your project’s goals — speed, cost, and user base vs. composability, security, and ecosystem depth.

TRC20 is a great fit when you need fast, cheap, high-volume transactions. That’s why it dominates stablecoin transfers, especially USDT — over 50% of Tether volume now flows through Tron. If you’re building a payments app, remittance service, or anything with frequent microtransactions, TRC20 is incredibly cost-efficient.

Transaction fees are fractions of a cent, and finality happens in seconds. However, you’re sacrificing some decentralization. Tron uses 27 validators chosen by stake, not permissionless mining or staking like Ethereum.

In contrast, ERC20 shines in complex, composable environments. If you’re building a DeFi protocol, DAO, or NFT platform, Ethereum’s rich ecosystem and mature tooling (like MetaMask, Chainlink, Etherscan, and hundreds of L2s) offer unparalleled flexibility.

Security is also a factor. Ethereum’s validator set is large and permissionless, and its battle-tested contracts have been running since 2015. That said, gas costs can spike during congestion, and finality takes several minutes without L2s or additional protocol layers.

In short:

Use TRC20 when low fees, speed, and scalability are your top priorities, especially for payments, stablecoins, or mass retail apps.
Choose ERC20 if you’re building within DeFi, need strong interoperability, or care about decentralization and auditability.

Some projects even issue both, using TRC20 for high-speed transfers and ERC20 for ecosystem access — it’s not always either-or.

How to Identify TRC20 vs. ERC20 Tokens

Identifying whether a token is TRC20 or ERC20 isn’t always obvious at first glance, especially since both follow similar interface standards. But under the hood, they live on very different blockchains, giving us clear ways to tell them apart.

First, check the wallet address format.

ERC20 tokens use Ethereum addresses that start with “0x”, like 0xabc123….
TRC20 tokens use Tron addresses starting with “T”, like TXYZabc….

That alone is a dead giveaway.

Next, look at the block explorer.

If you’re on Etherscan, you’re dealing with ERC20 tokens.
If the transaction is listed on Tronscan, it’s a TRC20 token.

You can also check token standards in wallet apps. For example, MetaMask supports ERC20 natively but doesn’t recognize TRC20. TronLink, the go-to wallet for Tron, works with TRC20 but not ERC20.

Another subtle difference is the gas fee currency.

ERC20 tokens require ETH to pay for gas. If you try to send an ERC20 token and don’t have ETH, it won’t work.
TRC20 tokens require TRX for gas or “energy.” Without TRX in your wallet, the transaction will fail or prompt you to burn TRX.

Some exchanges, like Binance, clearly label token types when depositing or withdrawing. Always double-check because sending a TRC20 token to an ERC20 address (or vice versa) could result in lost funds.

If you’re unsure, copy the contract address and search it on Etherscan and Tronscan. Only one will return valid data — that’s the standard you’re dealing with.

Final Thoughts on TRC20 vs. ERC20

TRC20 and ERC20 each serve distinct purposes in the blockchain world, and understanding their strengths helps you choose wisely. If your focus is fast, affordable transactions, especially for stablecoins or high-frequency use cases, TRC20 is hard to beat.

But if you’re building in DeFi, launching a DAO, or relying on composability and long-term security, ERC20 on Ethereum’s ecosystem offers unmatched depth and reliability. It’s not always about which is better but what fits your project or portfolio.

Knowing the difference helps you avoid costly mistakes and make smarter decisions, whether you’re a developer, trader, or just curious.

To learn more about Ethereum-based token standards, such as ERC721 or ERC1155, and their multi-token capabilities, read our complete guide to the top ERC token standards at the link below.

👉 Learn More: The Complete Guide to the Top ERC Token Standards for 2025