由于中文无法过审，这里就用英语了，可以自行用谷歌翻译翻译成中文看
In the last article we talked about the difference between consensus algorithms, now let’s understand the following concepts of cryptocurrency wallets and networks
What is a cryptocurrency wallet
A cryptocurrency wallet is a tool for storing, managing and transferring cryptocurrencies. It is usually a piece of software or hardware that generates and manages key pairs and uses these key pairs to sign transactions to transfer assets. Cryptocurrency wallets usually support multiple currencies such as Bitcoin, Ethereum and other digital currencies. They usually require users to back up their private keys to protect their assets, and can choose to store them offline or online, depending on the user's security needs.
Crypto wallets often use mnemonic phrases to help users back up their private keys. A mnemonic is a set of words used to describe a private key that can be used to restore a wallet.
The private key of a crypto wallet is a randomly generated number that is the only way for the user to control the digital currency in the wallet. If the private key is lost, the assets in the wallet cannot be accessed. Therefore, it is very important to back up the private key to prevent accidental loss or damage.
A mnemonic is a tool used to generate a private key, which can record the information of the private key using simple words. The seed phrase can be printed on paper and manually entered to restore the wallet if needed. This is an easier and more reliable way of storing, for example, long strings of numbers. Therefore, mnemonic phrases are a way to help users back up their private keys and keep them safe.
Hot wallet
Cryptocurrencies have seen widespread adoption over the past few years. In addition to being a well-known investment asset, many users are now using cryptocurrencies to pay bills in online and brick-and-mortar stores. Hot wallets allow you to trade cryptocurrencies in near real time.
Hot wallets or web wallets are cryptocurrency wallets that always require an internet and blockchain connection. This means that when you use a hot wallet, the private keys used to access your cryptocurrency are stored in the connected application.
Hot wallets are also divided into custodial and non-custodial. With a custodial wallet, you do not have full control over your funds. Storing cryptocurrencies in a custodial crypto wallet is like parking your own car in someone else's garage. Even though the car is yours, the garage owner has the keys. If one day the garage owner no longer shares his keys with you, you will not be able to drive this car that belongs to you.
The best example of a hosted crypto wallet is an exchange wallet. After setting up an account on a cryptocurrency exchange, you can get a crypto wallet, but you cannot store the wallet's private key. All you have is the public address of the wallet where your funds are stored.
A non-custodial hot wallet is a private wallet where you own both funds and private keys. Simply put, you are the boss and you are free to decide how all your funds are spent.
No matter what type of hot wallet you use, you can only store the cryptocurrencies you need for your daily transactions in the hot wallet. Because hot wallets require an internet connection, there is often a risk of hacking and theft of funds.
Cold wallet
You’ve probably heard a lot about cryptocurrency-related hacks and thefts, and we know it can be hard to swallow. While a hot wallet allows you to make instant transactions with cryptocurrencies, it is not necessary or recommended that you have all your funds connected to the internet.
With our cold wallet, you no longer have to worry about cryptocurrency hacking and theft of your funds. Cold wallets are offline cryptocurrency wallets that store private keys for cryptocurrency funds offline in a more secure manner. Even when transactions are made through cold wallets, the wallets confirm transactions in an offline environment. This process keeps your private keys offline at all times.
All cold wallets are non-custodial wallets, which means you are the only one with access to your private keys and funds. Therefore, when using a cold wallet, the private keys associated with your cryptocurrency are in your hands. Even big investors and large exchanges prefer to keep most of their funds in cold storage.
The best option for using a cold wallet is a hardware wallet, such as the Ledger hardware wallet. Not only does a hardware wallet give you full control over your funds and keep your keys offline, it also protects your private keys with a secure element (SE) chip, reducing the risk of crypto wallet attacks. These chips are the same as the biometric information chips in passports.
What is a public key
Public key: It is equivalent to the address of the wallet, which can be understood as a bank account. With the private key, the public key can be calculated, but with the public key, the private key cannot be calculated.
The address of the public key (the address of the wallet): it can be understood as a bank card number, which is calculated by the public key, just like the bank first opens an account for you, and then gives you the bank card number.
The role of the public key: the main purpose is to receive money, and it can also be used as a proof of transfer, just like you need to tell him the bank card number when someone sends you money.
What is the password
Password: Equivalent to bank card password. When creating a digital currency wallet, you need to set a password, which generally requires no less than 8 characters.
Password function:
- You need to enter a password when transferring money, which can be understood as you need to enter a password to transfer money to others with a bank card
- This password must be entered when importing a wallet with Keystore.
Passwords can be changed or reset. After entering the original password, you can directly modify the new password; If the original password is forgotten, you can use the private key or mnemonic to import the wallet and set a new password at the same time. In the digital currency wallet, a wallet can use different passwords on different mobile phones, which are independent of each other and do not affect each other.
What is a private key
Private key: equivalent to bank card number + bank card password.
After creating the wallet, enter the password to export the private key. The private key is a string of alphanumeric characters. A wallet address has only one private key and cannot be modified. The private key consists of a string of 64 or 128 bits or more.
You must keep the private key well, if you lose the currency in your cryptocurrency wallet, you will lose it!
The role of the private key: import wallet. With the private key, you can enter the private key and set a new password on any wallet of the same series to import the assets of the previous wallet A into wallet B. For example, if you lose your mobile phone, you can restore it as long as you have the private key.
mnemonic
Mnemonic: Equivalent to bank card number + bank card password. It is another form of representation of the private key.
Since the private key is composed of multiple strings, it is not easy to record and it is very easy to make mistakes, so mnemonic words appeared to facilitate users to remember and record.
Mnemonics generally consist of 12 or 24 words with a space between each word.
The mnemonic and the private key have the same function: as long as you enter the mnemonic and set a new password, you can import the wallet.
A wallet has only one set of mnemonic words and cannot be modified. The mnemonic can only be backed up once, and after it is backed up, it will no longer be displayed in the wallet. Therefore, be sure to copy it down when backing up to prevent transcription errors and check it as many times as possible.
Difference between mnemonic and private key
The private key is the key to determine whether the investor can open the digital currency wallet to withdraw the digital currency in the wallet. Consists of 64 hexadecimal characters. Not easy to remember.
The mnemonic is set to prevent investors from forgetting the private key. 12 words obtained from the private key through an algorithm.
The conversion between the private key and the mnemonic is interoperable, and the mnemonic is just another appearance of your private key.
The mnemonic will generally appear once when you create a new wallet, and will never appear again later, so it is best to copy the mnemonic when creating a new wallet, or even put it in a safe, and find a way to back it up yourself.
In short: mnemonic is equivalent to private key
fuel cost
A gas fee is a unit used to measure the amount of computational effort required to perform a particular operation on the Ethereum blockchain.
The name itself was not chosen by chance. Gas is actually similar to gasoline. The latter is used as the energy of the car to ensure that the car can run normally. The gas on the Ethereum network "refuels" the transaction behavior and allows users to perform different operations.
Every operation on the Ethereum blockchain, or more precisely on the Ethereum Virtual Machine (EVM), has a corresponding gas cost. For example: adding two numbers costs 3 gas; getting an account balance costs 400 gas; sending a transaction costs 21,000 gas.
Smart contracts often include multiple operations that can add up to cost hundreds of thousands of gas.
Interestingly, the gas price itself does not tell us how much we need to pay in a certain transaction. To calculate the transaction fee, we have to multiply the gas by the gas price.
The price unit of gas is gwei, and the unit of gwei is smaller than ETH. 1 gwei is equal to 0.000000001 ETH. We can think of the relationship between them as cents and dollars.
For example, let's say we want to send a simple Ethereum transaction if the price of ETH is $1800. Most popular Ethereum wallets (like Metamask) estimate the necessary gas price and allow us to choose between fast, medium and slow transaction confirmation speeds. Let's assume that if we want to confirm our transaction within a minute, the wallet estimate gas price will be set to 100gwei
We can now quickly calculate that we need to pay $3.78 for such a transaction. We multiply the gas cost of sending a transaction (21,000 gas) by the gas price (100 gwei), which equals 2,100,000 gwei, or 0.0021 ETH. At an ETH price of $1800, the transaction fee is $3.78
Why do we need gas
The Ethereum Virtual Machine is a Turing-complete machine that allows the execution of arbitrary code. While this is one of the main things that makes Ethereum so powerful, it is also more susceptible to the halting problem. A halting problem is the determination from the code and input of an arbitrary computer program whether the program will end or continue running forever.
Turing completeness means that in the theory of computability, if a series of rules for manipulating data (such as instruction sets, programming languages, cellular automata) can be used to simulate a single-band Turing machine
If there is no gas, the user can execute a program that will never stop. The reason may be that the code is wrong, or someone is doing something wrong. To prevent this from happening, Ethereum introduced a gas cost associated with each operation, which would prevent programs from being left running forever, eventually bringing the entire network to a standstill.
In addition to the gas price, each transaction also has a gas limit, which must be equal to or higher than the expected amount of gas required to successfully execute a particular transaction.
Before executing each operation in a transaction, the Ethereum Virtual Machine checks whether there is enough free space for that operation. If the remaining gas is not enough, use "out of gas" to revert the entire transaction, and roll back all states. Even if the transaction fails, the user will still pay the miner a transaction fee for the amount of work that has been done. This is also to avoid people launching malicious attacks on the network.
If the transaction consumes less gas than originally expected, the remaining gas is converted to ETH and refunded to the sender.
It is also important that all operations on Ethereum have the correct gas cost; otherwise, it could become another attack target. One of these attacks occurred in 2016, which resulted in a hard fork of the Ethereum network, resulting in a re-pricing of certain simple operations in the system.
Who gets the gas fee
In the Ethereum network, the revenue from gas fees is distributed to miners. Miners execute transactions and smart contracts in the Ethereum network, verify them, and include them in blocks and write them to the blockchain.
The gas fee is the compensation of miners, representing the price they pay for executing transactions and smart contracts. When transactions and smart contracts are executed, gas fees in ether are transferred from the trader's wallet to the miner's wallet.
Thus, a gas fee is a fee in the Ethereum network that pays miners for the execution of transactions and smart contracts. Gas fees are an important part of the operation of the Ethereum network, ensuring its stable and reliable operation.
Simple understanding, miners can obtain fuel fees as income on the basis of obtaining Ethereum network rewards through mining, but there are no miners in PoS consensus mechanisms, and validators in PoS can mortgage tokens and verify transactions. gain benefits
In the PoS consensus mechanism, the benefits obtained by the verifier are obtained by verifying the transaction and maintaining the security and integrity of the network, and have no direct relationship with the Gas fee
The difference between the exchange wallet (hot wallet) and Metamask (cold wallet)
About what the exchange is, I will explain it to you in the next issue. Here I will first explain the difference between the two
Exchange wallets are wallets provided by exchanges to store and manage users' cryptocurrencies. Metamask is an Ethereum wallet that can be used to store and manage Ethereum and Ethereum-based tokens.
Exchange wallets usually only support users to trade on that exchange, while Metamask wallets can be used in multiple exchanges and dApps. In addition, Metamask has higher security because users hold private keys and multiple signature methods can be used for transaction confirmation.
In general, exchange wallets are more convenient, while Metamask wallets are more secure. Users should choose the appropriate wallet according to their needs.
What is IPFS Gateway
An IPFS (InterPlanetary File System) gateway is a component that can access and store files on the IPFS network. It allows users to access data stored on IPFS via HTTP instead of directly interacting with the IPFS network.
The role of the gateway is to provide a bridge between the IPFS network and the traditional web network, allowing users to use standard web browsers and other tools to access data on IPFS.
There are many public IPFS gateways available, and users can also build their own IPFS gateways. It is often more convenient to use public IPFS gateways, as they remove the hassle of setting up and maintaining a gateway. However, if users need higher privacy and security, they can build their own IPFS gateway.
What is Ledger Wallet
Ledger Wallet is a digital asset wallet used to store and manage cryptocurrencies such as Bitcoin, Ethereum, etc. It is a hardware wallet that exists in physical form, it can store private keys offline, and has high security.
Ledger wallets have rich security features, such as users need to manually confirm transactions on Ledger wallets, and support multiple encryption algorithms and security functions. In addition, the Ledger wallet also provides convenient management functions,For example, digital asset balances and transaction history can be accessed at any time.
**WebHID, U2F and Ledger Live are three different functions of the Ledger wallet. **
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WebHID: WebHID is a technology for communicating with Ledger wallets, which can directly communicate with Ledger wallets through a browser. This method can make the online use of Ledger wallet more convenient and realize more functions.
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U2F: U2F is a technology that communicates with the Ledger wallet to verify the identity of the user. It is used in conjunction with various other authentication methods, such as passwords, to increase the security of your login.
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Ledger Live: Ledger Live is the official management tool of the Ledger wallet. It provides a graphical interface to easily manage digital assets, including checking balances, conducting transactions, and managing wallets.
In general, WebHID, U2F, and Ledger Live are three different functions of the Ledger wallet, focusing on online usage, user verification, and wallet management, respectively. Their combined use can provide a more convenient and secure digital asset management experience.
What is a blockchain network
Blockchain network refers to a distributed computing network based on blockchain technology, which is used to store and manage data on the blockchain (such as transaction records). This network is made up of many nodes, each of which can submit and verify transactions. Through distributed computing, the network can ensure the consistency and security of data while ensuring the transparency of all transactions
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The Ethereum mainnet is a public, distributed blockchain network that runs smart contracts and distributed applications (dApps) on the Ethereum platform. It uses Ethereum (ETH) as power and allows developers to develop and deploy a variety of powerful decentralized applications on it
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The Avalanche protocol (Avalanche) was officially launched in 2020. It is a new type of blockchain, and it is characterized by a new consensus mechanism, Avalanche, also known as the "Avalanche protocol", so Avalanche is also called the Avalanche chain.
Avalanche is a consensus mechanism called "Avalanche Chain". The method is to obtain multiple verification results in a fast and multiple sampling method among hundreds or more nodes. If more than half of the results are obtained, the correctness of the transaction or information can be confirmed.
This verification method is faster than Satoshi Nakamoto's brute force Proof of Work (PoW), more secure than Byzantine Consensus Mechanisms (BFTs), and safer than Proof of Stake (PoS).
The whole mechanism is like an "avalanche mechanism". After the startup, the number of verification nodes accumulates like a snowball, so it is called the "avalanche mechanism". Not limited to a single linear chain, the Avalanche blockchain is highly scalable.
Avalanche's processing speed: 600 times that of Bitcoin; from the above explanation, it can be imagined that Avalanche's mechanism can leapfrog the certification speed of cryptocurrency, and the calculation can reach up to 4,500 transactions per second, while Bitcoin's PoW workload verification The mechanism only has 7 strokes per second.
AVAX is Avalanche's public chain token, and it is also one of the most widely used public chain tokens in the market. The total number is 720,000,000. By 2022, the daily trading volume and market value of AVAX coins often rank among the top 10 cryptocurrencies. In addition to being able to correspond to multiple DeFi, liquidity mining and other applications, it is also because AVAX coins are below Various functions.
Why does Avalanche separate three blockchains? What is the Avalanche protocol? The three chains in Avalanche are "P chain", "X chain" and "C chain". Easy access to assets.
AVAX-X chain: Responsible for establishment and transaction, also known as transaction chain, mainly responsible for establishment and transaction of assets, most users use this chain when transferring assets or trading assets, and it is also the exchange that supports Avax tokens A chain of withdrawal and transfer.
AVAX-P chain: store data, information, and verification work on the chain, also known as platform chain or governance chain, the main function is to store data, information, and verification work on the chain.
AVAX-C chain: Responsible for smart contracts, also known as contract chains, responsible for smart contract-related functions. This chain is compatible with EVM, so it can interact with most smart contracts and can be added to Metamask
- Polygon is an expansion solution specially developed to solve the insufficient scalability of Ethereum itself and the high transaction fee. Compared with other Layer 2, the security of the side chain itself may be slightly insufficient, and Polygon itself is EVM compatible. Blockchain, so as long as you have a wallet that can use Ethereum such as Metamask, you can directly add the Polygon chain to use all applications on the Polygon blockchain.
Reduce the burden on the main chain of Ethereum
The main purpose of Polygon is to reduce the burden on the main network of Ethereum. As a side chain of Ethereum, some calculations of transactions and smart contracts can be placed on the side chain, and then put back on the main chain after calculation, which greatly reduces the burden on the main chain of Ethereum. burden.
Reduced handling fee
Another main purpose is to improve user experience. Ethereum’s handling fees are very expensive, not affordable for ordinary users, and the speed is also very slow. Polygon’s high performance, low handling fees, and fast speed can solve the problems of ordinary users.
Matic coins are used as transaction fees for Polygon
As the native token of the Polygon blockchain, Matic is the transaction fee required for all operations on the chain. The handling fee for each transaction is only about $0.01-0.02 equivalent to the MATIC token, which is higher than that on the main chain. very cheap
Matic coin token usage 2, pledged to Ploygon to ensure security
Validators and delegators protect the smooth operation of the network by staking their own MATIC coins in pledged smart contracts, which are used to reach consensus and ensure the security of the network.
- Optimism is a decentralized smart contract platform designed to increase transaction speed, reduce transaction fees and improve network security through improvements to the Ethereum network. Optimism achieves its optimization goals by introducing private chain state and hierarchical state tree (LST) technology. The platform supports Ethereum's smart contract language and development tools to facilitate the development and deployment of smart contracts for developers. In this way, Optimism provides the Ethereum ecosystem with a more efficient and secure option to expand the scope of Ethereum applications.
**Optimism mainly brings 4 benefits: EVM equivalence, data safety, speed and cost. **
Even if Optimism is not the most EVM-compatible chain, it is one of them, the point is that it is one step closer to EVM equivalence. Optimism is able to support any Ethereum application using the Optimistic Virtual Machine (OVM), an EVM-compatible virtual machine. Developers can use any Ethereum-based dApp on Optimism with almost no architectural changes. In this way, decentralized applications (dApps) on Ethereum can be seamlessly integrated on Optimism.
Unlike sidechains like Ronin, which have their own security measures as they operate independently, rollups like Optimism get security directly from the Ethereum mainnet. Transactions are processed on Optimism, but the transaction data is written and stored on Ethereum. Therefore, Optimism not only maintains the security of Ethereum, but also guarantees scalability.
In the use of Ethereum, the calculation step is very slow and expensive. By not counting transactions by default, Optimism can improve scalability by 10-100x, depending on the nature of the transaction. Optimism enables almost instant transactions, allowing users to check the results of their transactions immediately; and transactions on Optimism are also cheap, at a fraction of the cost of Ethereum transactions.
Currently, the base transfer fee on Optimism is $1.66, compared to $8.77 on Ethereum. In total, Optimism is estimated to have saved over $335 million in gas fees for on-chain transactions.
Optimism has 3 main disadvantages: longer withdrawal times and higher fees, potential incentive bias among online users, potential censorship of transactions by L1
Since the challenge period for fraud proofs is 1 week, the waiting period for withdrawals through the official Optimism cross-chain bridge is also 1 week. Be sure to pay attention to this during use, because once the withdrawal through the main chain bridge is submitted, it cannot be revoked. The cost of withdrawing funds through the main chain bridge is high, possibly exceeding $100, due to the extensive security measures put in place on the bridge. Such a lengthy and expensive withdrawal period would adversely affect the acceptance and composability of Optimism.
In order to solve this problem, third-party chain bridges, such as Hop exchange, have emerged. These bridges enable instant withdrawals and are often cheaper than the main chain bridge. Optimism is working on reducing withdrawal fees, but the necessary update is still a few months away.
The network relies on incentives that encourage validators to challenge fraudulent proposals and orderers to submit correct proposals. If there are few or no fraudulent proposals, validators receive little or no rewards from operating nodes, since they are only rewarded for successfully challenging fraudulent proposals. This inhibits the enthusiasm of validators to operate nodes. Without validators, orderers are free to submit fraudulent transactions, causing network failure.
However, this is unlikely to happen. In addition to the potential network rewards that may be earned, there are incentives for users to act as honest validators. In order to ensure the normal operation of the protocol, applications on Optimism (such as third-party bridges, DeFi protocols) have incentives to encourage users to become honest validators.
The orderer may bribe Ethereum miners: if a transaction has sufficient value, the orderer can let fraudulent proposals pass during computational checks at little cost. This can destroy trust in the network and cause network failures. This is unlikely to happen, however, since miners are incentivized in line with the Ethereum network. If this happens, the value of the Ethereum network itself will be negatively affected. Miners will lose long-term value as Ethereum miners by coveting this one-time reward. Honest sorters and validators tend to bribe miners with higher rewards, since the total value involved may be higher than the value of a single transaction.
In short, Optimism is a tool that helps improve the scalability, privacy, and security of the Ethereum network, the underlying blockchain technology.
What is a public chain
The full name of the public chain is "public chain", which refers to a blockchain in which anyone in the world can read and send transactions, and the transactions can be effectively confirmed, and can also participate in the consensus process. Therefore, under normal circumstances, public chains are considered "completely decentralized", such as Ethereum, Avalanche, Polygon chain, etc. The fully decentralized public chain encourages participants (nodes) to compete for bookkeeping through a consensus mechanism and a token reward mechanism to jointly maintain the security of data on the chain.
Contrary to the public chain, the "private chain" is a blockchain that is fully controlled by an organization or institution, and the data reading authority is regulated by the organization. The "Alliance Chain" is between the public chain and the "private chain". It is suitable for B2B transactions such as transactions and settlements between different entities. The main users are banks, insurance, securities, business associations, group companies, upstream and downstream enterprises, etc. . For example, China UnionPay and China Everbright Bank jointly use the alliance chain platform to build a multi-center trusted POS electronic purchase order system.
Public Chain Ecosystem refers to an open and decentralized blockchain system and its surrounding ecosystem. This ecosystem consists of various roles, components and applications, such as blockchain developers, node operators, DApp developers, digital asset holders, investors, etc. The core features of the public chain ecosystem are decentralization, openness, transparency and credibility. In the public chain ecosystem, all participants can freely participate in the transactions, create and use digital assets, and can also participate in the governance and development of the blockchain system. The public chain ecosystem is the core driving force for the development of blockchain technology and an important factor in enhancing the security and trust of digital assets.
###ERC-20
ERC is the abbreviation of Ethereum Request for Comment, that is, the developer's suggestion for the Ethereum token and ecology. A more professional explanation is the code agreement for the specific standard of the token design. So intuitively understand that ERC-20 is the No. 20 token standard protocol of Ethereum.
To further explain, it can be compared. Just as the TCP/IP protocol is used to regulate the communication transmission of the Internet, the ERC-20 protocol is one of the standards used to standardize the data communication of the Ethereum platform. Therefore, if you want to issue Tokens on Ethereum, you need to abide by the ERC-20 protocol of Ethereum. This agreement mainly includes: determining the name, abbreviation, total amount of Token, how many digits after the exact decimal point, etc.
At present, ERC-20 has become the most mainstream token standard in the Ethereum network. More than 95% of the tokens currently on the market are developed based on this standard. This standard allows developers to issue their own tokens on Ethereum with a lower threshold, and provides developers with a set of standardized and simplified design functions, specifically:
- Set the token name
- Set the total amount of tokens
- Specify the number of decimal places
- Standardize how to approve token transactions
- How to access data
- Allow to view the number of ERC20 tokens and the total amount of tokens in each address
- Under certain conditions, third-party accounts are allowed to use the token assets in an account
- Allow the pass to be compatible with third-party individuals such as ETH-compatible smart contracts and wallet services
- Other simple functions and so on.
Obviously, many computer enthusiasts who do not understand programming can also issue a new token in a short period of time by copying the ERC-20 standard code, which has also made various encrypted assets spring up like mushrooms since the summer of 2017 version emerges. The ERC-20 standard has also become the template for the Ethereum token standard, ERC-223, EStandards such as RC-621 and ERC-777 are improved versions of ERC-20.
It should be mentioned that the ERC-20 standard cannot be compatible with NFT, because NFT is a non-homogeneous token, which does not match the underlying ERC-20 protocol according to the homogeneous design standard. Therefore, the ERC-721 standard for issuing NFT assets on Ethereum came out immediately.
In addition, it should be noted that while ERC-20 is a standard and protocol, it also provides multiple functions for crypto assets. It is also a smart contract that provides users with the functions of asset storage and transfer on the chain. According to this understanding, it is more like a decentralized network, providing a carrier for the flow of assets on the chain. Of course, this is also due to the fact that it is a standardized protocol that can undertake this task, because most of the assets minted by this standard have high interoperability and compatibility, and the obstacles encountered in seamless connection on the chain are even more serious. Small.
For our ordinary users, ERC-20 is most related to us, and it is the transfer link of the stable currency USDT. This part makes a key introduction:
As we all know, USDT is the value medium and value measure of the encryption circle, and transactions between different types of tokens require USDT as an intermediary. However, the receipt, storage and transfer of USDT all need to rely on a specific decentralized network. In the early days, USDT mainly completed one-stop issuance, transaction and storage on Bitcoin's Omni protocol. However, after 2018, with the explosion of the Ethereum ecology, TEDA, the company behind USDT, chose to embrace the more ecologically active Ethereum, and the first choice among many protocols is the ERC-20 protocol with the highest versatility.
In addition, in the transfer of centralized stablecoin assets such as USDT, the ERC-20 network has multiple obvious advantages over the Omni protocol: although the same mining fee is charged, the transfer speed is faster, the stability is stronger, and the security is more guaranteed.
With the intensification of Ethereum network congestion and the rise in the price of ETH, the cost of using the ERC-20 standard transfer has risen, and many users are embarrassed. In response to this pain point, the TRON public chain network developed the TRC-20 protocol, which exempts miners’ fees, to seize the market share of ERC-20. However, the security of the TRC-20 standard is still weaker than that of the ERC-20. When choosing a transfer protocol, users need to consider comprehensively the transfer speed, cost, overall amount, and risk tolerance.