The network you use to process blockchain payments, including those involving USDC, influences transaction speed, efficiency, and fees. As a result, it’s no brainer to understand cryptocurrency networks. And that’s exactly what you’ll learn in this piece: the best blockchain network for USDC payments. 

What’s the best blockchain for USDC payments?

1. TRC 20

The Tron Request for Comment (TRC) 20 network is a technical standard for creating and transferring stablecoins (USDC and USDT) on the Tron blockchain. 

The pros of using the TRC 20 network are listed below: 

• Low translation fee: Gas fees cost only a few cents, which is significantly cheaper than other networks, such as ERC 20, in which you’d pay ten (s) of dollars. I

• It’s fast: Transactions, including USDC payments, complete in seconds. 

• It’s readily available: Many exchanges, including off-ramp services such as Crane, support TRC-20 thanks to its affordability and speed for processing payments. 

In contrast, the cons of using the TRC 20 network are listed below: 

• Discontinuation of official support: On February 21, 2024, Circle—the issuer of USDC—discontinued support for USDC on TRON. Circle’s move means users can’t transfer USDC on TRON from Circle Mint to external wallets. The lack of official support means the risk of lost funds is higher. 

• Limited ecosystem compared to other blockchains: Indeed, the TRC-20 network is growing, especially in emerging markets such as Africa and Asia. However, its adoption is limited compared to Ethereum, partly because Circle and other major exchanges, such as Binance, discontinued their support. 

 2. Ethereum Request for Comment (ERC) 20

ERC-20 works as a smart contract—a self-executing computer program—on the Ethereum blockchain. The contract records tokens on Ethereum, enables transfers, and handles approvals. 

The pros of using ERC-20 for USDC and cryptocurrency payments are listed below: 

• It’s fast. 
• It’s widely accepted on decentralised finance (deFi) apps, wallets, and payment platforms, including Crane. 
• Highly secured with regulatory compliance. 
• It’s easy to create and transactions are transparent (every transaction is recorded on the blockchain).

The cons of using ERC-20 for crypto payments include: 

• High gas fees.
• Not ideal for small payouts because of the high gas fees.
• It’s slow compared to TRC-20 and Solana. Transactions take 15-60 seconds compared to 2-3 seconds with Tron. 

3. BEP 20

BEP-20 is a token standard on the Binance Smart Chain (BSC). Like ERC-20, BEP-20 is issued via smart contracts. 

The merits of using BEP-20 for crypto payments are listed below: 

• Low transaction fees.
• High transaction speed. 
• High adoption in the Binance ecosystem
• Compatible for low-fee transfers because of its affordable transaction fees and speed. 

The demerits of using BEP-20 for payments include: 

• Not every non-Binance blockchain platform supports USDC payouts directly via the BEP-20 standard. 

• Moving USDC between Ethereum requires bridges, which expose crypto users to the risk of loss or security compromise. 

Note: BEP-20, ERC-20, and TRC-20 are available on the Crane app to receive cryptocurrency.

4. Solana standard 

Solana is a blockchain network built for speed and scalability. It can handle thousands of transactions per second, making it ideal for payments. 

The advantages of using Solana for USDC payments include: 

• Transactions are fast, making it ideal for cross-border payments. 
• The transaction fees are cheap. Solana’s high throughput keeps transaction fees cheap during congestion. 
• USDC natively supports Solana, reducing the risk of fund loss and insecurity. 

Cons of using Solaana for stablecoin payments

• Limited adoption in Africa and Asia due to its relative newness compared to TRC-20 and ERC-20. 
• Heightened fear of hacks and rug pulls because its ecosystem support is still developing. 

The table summarises the best blockchain networks for USDC (and stablecoin) payments. 

Can I transfer USDC to my bank account in Nigeria?

The short answer is yes, you can transfer USDC to your local bank account in Nigeria. 

The long answer is that you need Bank Direct on Crane to do so automatically without stress. 

Bank Direct on Crane is used to receive and auto-convert cryptocurrency, including stablecoins such as USDC and USDT, into naira and send it to your bank account. With Bank Direct, you don’t have to initiate crypto (or USDC) conversions manually. Once you configure the service on Crane, you’ll receive the naira equivalent of your cryptocurrency assets in your bank account in seconds. 

Bank Direct works like this on Crane: Send wallet to business clients > receive the naira value of the digital asset using the current market rate in your preferred bank account. 

The benefits of using Bank Direct to receive payments are listed below: 

• It’s quick and easy: Bank Direct transactions take seconds to complete. Besides, it’s simple to use. After selecting and configuring Bank Direct to receive payments on Crane, you no longer need to worry about manual conversions. 

• It’s built for everyone: You don’t need to be a crypto veteran to use Bank Direct. The service is easy to set up on the Crane app. Once you’re done with the configuration, you don’t need to do anything further. 

USDT vs USDC vs BTC: Which is best for cross-border payments? 

Bitcoin, USDC, and USDT are three of the most used digital assets for cross-border payments. Bitcoin is globally recognised and is popular in many exchanges, partly because it was the first cryptocurrency. It is also fully decentralised, meaning every transaction is recorded on a public blockchain you can’t alter. 

However, Bitcoin is deflationary (its supply is fixed and in a constant state of decline), making its value volatile. Its BTC network is also slow, especially when it’s congested, leading to transaction delays and high gas fees. 

Stablecoins (USDC and USDT) were launched to compensate for the shortcomings of Bitcoin. They’re backed by local, fiat currencies to ensure stability. They operate on high-speed blockchain networks to improve transaction speed and cross-border payment efficiency. More importantly, the transaction fees are cheap, unlike the BTC network.

Despite the advantages of USDC and USDT, both dollar-backed stablecoins aren’t without shortcomings. Tether, the issuer of USDT, has faced criticisms concerning the transparency of its reserves. Similarly, the financial autonomy that USDC grants has been questioned, seeing that Circle can freeze funds. Critics argue that Circle’s hegemony on USDC defeats the decentralisation principles of cryptocurrencies. 

However you look at it, BTC, USDC, and USDT have strengths and weaknesses. Generally, USDT and USDC are ideal for users who tick the check boxes listed below: 

• You want a relatively stable digital asset for cross-border payments. 
• You prefer to pay cheap transaction fees. USDT and USDC are available on blockchain networks with low transaction fees. For example, it costs less than a fraction of a cent to send USDT through Base (an Ethereum layer 2 network).  
• Transaction speed is a deal breaker. USDT and USDC operate on ultra-fast blockchain networks, such as Solana and TRC-20, that complete cryptocurrency deals in five seconds or less. 
• You do frequent low-volume transfers. Because USDT and USDC operate on blockchain networks that charge negligible transaction fees, they’re suitable for recurring transactions. 

Similarly, BTC is your choice if you fit the following checklists: 

• You want a fully decentralised blockchain for payments. Unlike USDT and USDC, BTC is fully decentralised and not controlled by a single entity. As a result, its security and privacy levels are top-notch. 
• You don’t mind paying high fees. Compared to USDT and USDC, BTC network transaction fees are high. 
• Transaction speed isn’t a deal breaker. Unlike USDT and USDC, BTC transactions are slower. It takes anywhere from minutes to hours to complete, especially during periods of congestion.

The table below summarises the functionalities of BTC, USDC, and USDT. 

FAQs about the best blockchain for USDC payments in Nigeria

1. Which app can I use to generate a USDT invoice?

You can generate USDT invoices through Request Payroll on Crane for timely payments and record-keeping. Follow the steps below to create an invoice on Crane: 

• Sign in to the Crane app. If you’re a new user, follow the steps here to create an account. It takes less than three minutes to get started. 
• On the homepage, select Receive > Request Payroll > Create New. 
• Fill in the corresponding form with your employee’s email and name, the digital asset to receive payments, the preferred network, and the amount to be paid. 
• Proofread the email for errors using the Preview mail before forwarding it to your client. 

2. Can I use USDC to buy BTC?

Yes, you can use USDC to buy BTC on on-ramp platforms (e.g., Quidax) that support crypto trading. 

While you can’t use trade cryptocurrencies on Crane, our off-ramp platform supports conversion to local currencies and subsequent transfer to bank accounts. This means after buying BTC with USDC on a platform like Quidax, you can use Crane to convert the BTC to naira and transfer it to your bank account. 

3. Can I redeem USDC for USD? 

Yes, on-ramp platforms, such as Quidax, support USDC conversion to USD. However, off-ramp apps (e.g., Crane) offer USDC conversion to local currencies.