How does a broker store the same coin deposited via different networks?

[Coinmeistah]

Does Binance (or any other broker) store the same coin on different networks, when deposited via different networks?

Example:
I send 10 USDT from broker X to Binance via the Tron network
I send 10 USDT from broker Y to Binance via the Ethereum network
The balance on Binance is 20 USDT. I am able to withraw the complete amount via one or the other network is seems.

Yet where do the coins actually reside on Binance? I imagine 10 USDT on an ETH wallet and 10 on a Tron wallet?
If so, what happens if the Tron network is compromised (e.g. hack or dump), do I lose half of my funds?
As far as I know I cannot see on binance that my USDT coins are devided amongst different addresses/networks.

[_act_]

This should be moved to exchanges.

Exchanges are the owners of the coins and tokens on blockchain, not you, all you are seeing are just numbers, not the real coins and tokens. The exchanges know how to handle that.

[cryptoaddictchie]

Yes even though what network you use it will accumuoate on your spot wallet. It simply there reflecting on your wallet and Binance has a system on how to show it on our account regardless what blockchain we usef to deposit that.

They are an organized centralized exchange wherein each account has designated deposit address.

[_act_]

Yes even though what network you use it will accumuoate on your spot wallet. It simply there reflecting on your wallet and Binance has a system on how to show it on our account regardless what blockchain we usef to deposit that.

Only what you can see is the transaction history, you can be able to know the network used through the address you used in the transaction history. But Coinmeistah is very right that you can not see the coins separately on the centralized exchanges and you can be able to withdraw to any other network available for withdrawal on the exchange.

What Coinmeistah mean is that if you deposit USDT on Tron network, the same amount of USDT on Tron network should be seen separately from other USDT on another network, but that is not how it works on exchanges, the total balance deposited would be seen in all networks of USDT that was deposited. That is how it is also on Binance on the spot wallet.

[Cantsay]

Let's say your Binance deposit address is 0x07a277***** and you transfer 7 usdt, 9 usdt and 12usdt in BSC, Ether and polygon network respectively, in your Binance it'll reflect 28 usdt. Just as @_act_ said it isn't real token just some figure that let you know your current balance. And when you want to withdraw your 28 usdt from Binance it gives you an option to select your preferred network.

But even after you're done with your withdrawal and you're received your token in your wallet, if you still go to a Blockchain explorer to scan your Binance deposit address (0x07a277*****) you'll still see that everything is still there the same way you sent them (in different networks).

[cryptoaddictchie]

Only what you can see is the transaction history, you can be able to know the network used through the address you used in the transaction history. But Coinmeistah is very right that you can not see the coins separately on the centralized exchanges and you can be able to withdraw to any other network available for withdrawal on the exchange.

Ofcourse transaction records only shows the deposited wid attached link of transactions on the record but it does show which network you enroute the deposit funds.

the total balance deposited would be seen in all networks of USDT that was deposited. That is how it is also on Binance on the spot wallet.

Thats exactly what I said dude. Regardless what network he used. But in history you can see the transaction link so you know it will be coming from tron, eth or whatever network as long as it supported by binance.

[Coinmeistah]

I now understand it does not matter for safety reasons to transfer USDT via one or the other network.
Behind the curtains one coin can be stored on different addresses at Binance. You as user do not really have an insight in this (although you can check some historical data).

The safety of the coin itself is an aspect of how USDT works in general. USDT is (should) backed by real USD, so a failure within one network should be covered, in theory at least.
According to the "Transparency" page on Tether.to there is currently even more USDT on the Tron network than on Ethereum. So if popularity would impact risk in a positive way, this is a good thing.

Yet I highly doubt if this safety aspect applies to all crypto currencies that lives on different networks, as I wonder if all these crypto currencies have the same intricate financial/safety mechanisms.

[jackg]

I now understand it does not matter for safety reasons to transfer USDT via one or the other network.
Behind the curtains one coin can be stored on different addresses at Binance. You as user do not really have an insight in this (although you can check some historical data).

You can use block explorers to work out where your funds went too. You just need to put in the address you sent funds from and keep clicking until you get to the exchanges address (often one that holds a lot of funds but sometimes one that has lots of inputs and outputs - like a wallet that's actively processing deposits and withdrawals).

The safety of the coin itself is an aspect of how USDT works in general. USDT is (should) backed by real USD, so a failure within one network should be covered, in theory at least.
According to the "Transparency" page on Tether.to there is currently even more USDT on the Tron network than on Ethereum. So if popularity would impact risk in a positive way, this is a good thing.

The security of usdt and tron gets tested quite a lot by its existence on defi platforms (like exchanges/liquidity pools).

If it were insecure, it wouldn't have lasted this long. If it didn't have a full reserve it probably would have though as people will mostly assume it's 1:1 and an attacker probably wouldn't have enough money to compete with usdt's fund even if they only had a few % of a reserve (some coins have taken 20% to reach their peg with bad liquidity).

Yet I highly doubt if this safety aspect applies to all crypto currencies that lives on different networks, as I wonder if all these crypto currencies have the same intricate financial/safety mechanisms.

Most stablecoins suffer from it.
Lots of tokens suffer from having bad code and vulnerabilities in their smart contracts or dapps. Most actual coins don't suffer as many of these losses as they provide more basic functions (like bitcoin and ethereum).

[JeromeTash]

Yet where do the coins actually reside on Binance?

Binance hot wallet and cold wallets. When you deposit money in the ban with specific notes, it doesn't mean you will get the exact notes when you withdraw 1 hour later.

I imagine 10 USDT on an ETH wallet and 10 on a Tron wallet?
If so, what happens if the Tron network is compromised (e.g. hack or dump), do I lose half of my funds?

An attack on the tron USDT would probably mean an attack on the whole Tether token. I think the whole price of Tether token would be affected rather than just a half.

As far as I know I cannot see on binance that my USDT coins are devided amongst different addresses/networks.

yes it's just shown as USDT in general.

[noorman0]

-snip-
Yet I highly doubt if this safety aspect applies to all crypto currencies that lives on different networks, as I wonder if all these crypto currencies have the same intricate financial/safety mechanisms.

Security of intrinsic value will go with the extent to which the network guarantees it. The Terra UST case is a case where an exploit of the main network protocol caused the coin to lose value, and that also impacted UST derivative tokens on other networks.
Security from theft, hacking is different in each centralized service. As already explained above me, they mostly have "cold storage" for a large number of customer assets and implement a SAFU system.

[hugeblack]

According to the "Transparency" page on Tether.to there is currently even more USDT on the Tron network than on Ethereum. So if popularity would impact risk in a positive way, this is a good thing.

Tor blockchain network will die if people stop using USDT, so if the fees in Ethereum network drop, we may find that USDT is used only Ethereum and Binance only.
A few weeks ago, they removed a lot of stablecoin trading pairs, which means that if you want to get a stablecoin in the future, you may need to convert it to BEP20 network.

About your main ask, crypto exchange is central database, when you deposit and they get enough conformations, they update that database.