Stablecoins have become an important part of the cryptocurrency ecosystem. Huge numbers of crypto users today store their funds in stable coins to dodge the volatility of crypto markets. As they become more widely used by the crypto community, it is important to reflect on stable coins built over different blockchain networks and compare which ones are best for the community.
In this article, we will briefly compare ERC-20 based stable coins such as Tether (USDT), USDC, TUSD with those built on top of XinFin XDC Hybrid Blockchain.
We tested stable coins based on both the Ethereum blockchain and on XinFin.
For a $50 transaction in the ERC-20 stable coin, the network charged a transaction fee, also known as gas, equivalent to 0.004079691 ETH or $0.93. The same transaction on XinFin cost merely 0.00021 XDC, which is worth $0.00000078.
This signifies that users must pay a transaction fee of approximately 2% for sending payments in an ERC-20-based stable coin. However, for a XinFin network stable coin, the transaction fee is only 0.00042%. XinFin-based stable coins thus make transactions cheaper by more than 4700 times compared to ERC-20 stable coins.
$50 worth USDT(50 USDT) transaction:
Transaction Hash: https://etherscan.io/tx/0x9b97c187360be65c9f26dd2911bb832723aef49871b63a838b0938b96cb12c41
$50 worth XDC(13012.5 XDC) transaction:
Transaction Hash: https://etherscan.io/tx/0x9b97c187360be65c9f26dd2911bb832723aef49871b63a838b0938b96cb12c41
Even though ERC-20 stable coins have higher transaction fees, their transaction settlement time is also greater than that of XinFin-based stable coins.
ERC-20 stable coin transactions take between 10 to 20 seconds for settlement. On the other hand, XinFin stable coin transactions take five to ten times less and settle almost instantly in 2 seconds. The creation of stable coins on XinFin Network is very easy with the help of MyContract an automated stable coin creation smart contract platform.
Tools to access stable coin are web wallet, Mobile Wallet, XinPay
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