Stablecoins have become an important part of the cryptocurrency ecosystem. Huge numbers of crypto users today store their funds in stablecoins to dodge the volatility of crypto markets. As they become more widely used by the crypto community, it is important to reflect on stablecoins built over different blockchain networks and compare which ones are best for the community.
In this article, we will briefly compare ERC-20 based stablecoins with those built on top of XinFin’ XDC Hybrid Blockchain.
We tested stablecoins based on both the Ethereum blockchain and on XinFin.
For a $50 transaction in the ERC-20 stablecoin, 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 stabelcoin. However, for a XinFin network stablecoin, the transaction fee is only 0.00042%.
XinFin-based stablecoins thus make transaction cheaper by more than 4700 times compared to ERC-20 stablecoins.
$50 worth USDT(50 USDT) transaction:
Tool: XDC Wallet Android App
$50 worth XDC(13012.5 XDC) transaction:
Tool: XDC WebWallet
Even though ERC-20 stablecoins have higher transaction fees, their transaction settlement time is also greater than that of XinFin-based stablecoins.
ERC-20 stabelcoin transactions take between 10 to 20 seconds for settlement. On the other hand, XinFin stablecoin transactions take five to ten times less and settle almost instantly in 2 seconds.
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