Blockchain and networks: How they work and why they matter for cryptocurrencies

Tiempo de lectura: < 1 minuto

Blockchain technology was born out of the need to have a system without intermediaries to perform peer-to-peer financial transactions. That is why today this technology is the core of the entire cryptocurrency industry.

In simple terms, a blockchain is a decentralized database that records transactions securely and transparently. Each transaction is verified and validated by the network nodes, making it very difficult to manipulate.

Today there are many blockchains or networks such as Bitcoin, Ethereum, Tron, Polygon or Avalanche among others. Each network has its own transaction costs, speed and functionalities, which means that it is important to choose the right network for each transaction.

By using different networks, users can take full advantage of the benefits of each, enabling them to conduct transactions more quickly, securely and efficiently.

The case of the Ethereum network (ERC-20) and the Tron network (TRC-20) are very good examples as both networks run on Bitnovo’s platform and wallet for cryptocurrency transfers.

For example, if we want to transfer USDT, we can choose between the two networks depending on our needs.

Generally speaking, if you are looking for a widely used and accepted network, Ethereum’s ERC-20 network is the best choice for transferring USDT.

On the other hand, if you are looking for faster and cheaper transactions, Tron’s TRC-20 network is the best choice for transferring USDT. Transaction costs are almost zero.

In both cases, both networks have advantages and disadvantages that may influence the decision of which network to use to transfer your USDTs.


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