Krympress reports:
Imagine that you are holding two coins in your hands. Outwardly, they are almost identical, both are attached to the US dollar, both are widely used in the world of cryptocurrencies. Yes, these are USDT and USDC — the two largest stablecoin in the market. But behind external similarities are the differences that significantly affect financial decisions.
Every day, millions of people choose between these digital assets for storing funds, trade and transfer. And each time this choice affects the safety of their funds, the speed of transactions and potential risks. At the same time, we are talking about choosing exchangers-and this process should be attentive, whether it is Russian exchangers or services USDC Kyrgyzstan. Before the exchange, it is also important to understand the features of each stablecoin.
History of creation and development
The path of these stabilcoins began at different times. USDT appeared in 2014 as a pioneer who opened a new era of stable cryptocurrencies. Its creator, Tether Limited, sought to offer an alternative to volatile cryptoactures. The USDC was released later — in 2018, when the Center consortium formed by Circle and Coinbase presented his vision of a stable digital currency.
Technological basis
USDT works on several blockchains, including Ethereum and Tron. This provides flexibility when choosing a network for transactions. USDC, in turn, was originally created as a token of the ERC-20 standard on the Ethereum blockchain.
Pay attention! USDC regularly undergoes independent audit checks confirming the full support of tokens in US dollars. Every month, reports on the state of reserves are published.
And the USDT has long been under the close attention of critics because of questions about the transparency of reserves. In 2019, it turned out that the provision was only 74% of the total number of tokens. But the company is working on improving its reputation.
Practical application
USDT leads in terms of trading and prevalence on exchanges. It is accepted by almost all large platforms. Including Cryptocurrency exchangers in Kyrgyzstan. USDC is often used in decentralized financial applications (Defi) due to its reliability and transparency. Many lending protocols prefer this Stablecoin.
Commission and speed of transactions
The cost of transfers depends on the selected blockchain network. On the Ethereum network, commissions can be high for both stablecoins during increased load. But USDT on Tron offers very low commissions.
For traders who are important with liquidity and wide support of exchanges, USDT may be a preferred option. Investors and companies for which transparency and regular reporting is critical are more often selected by USDC.
It is worth noting that the development of cryptocurrency regulation can have a significant impact on both stablecoin. But it is the USDC, due to its transparency and compliance with the requirements of the regulators, that can get an advantage in the long run.
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