Cryptocurrency Q&A
Is ERC-20 a stable coin?
Is ERC-20 a stable coin?
TopazRider
Mon May 27 2024
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6 answers
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Could you please clarify for me, is ERC-20 categorized as a stable coin? I've heard various discussions about it, but I'm still a bit confused. ERC-20 seems to be a standard for tokens on the Ethereum blockchain, but does that automatically mean it's a stable coin? Or are there specific criteria that a coin must meet to be considered stable? I'm interested in understanding the nuances better, so any explanation would be greatly appreciated.
6 answers
Valentino
Wed May 29 2024
TRC-20, on the other hand, functions on the Tron blockchain, a platform that aims to provide high scalability and low-cost transactions.
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BlockchainBaron
Wed May 29 2024
These differences extend to their respective address styles. ERC-20 addresses adhere to the format specified by the Ethereum protocol, while TRC-20 addresses conform to Tron's unique addressing scheme.
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Riccardo
Wed May 29 2024
Tether ERC-20 and TRC-20 are both classified as stablecoins, a type of cryptocurrency designed to maintain a stable value pegged to a real-world asset, in this case, the US dollar.
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Bianca
Wed May 29 2024
Transfer speeds also vary between the two. Ethereum, the underlying blockchain of ERC-20, is known for its relatively slower transaction speeds due to network congestion and high fees. Tron, however, claims to offer faster transactions with lower costs.
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CryptoLodestar
Wed May 29 2024
The fees associated with transferring these stablecoins also differ. ERC-20 transactions typically involve higher gas fees, which are paid in Ethereum's native currency, Ether. TRC-20 transactions, on the other hand, have lower fees due to Tron's efficient transaction mechanism.
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