Use tr when you want to replace (translate) single characters.
tr matches on single characters (not via a regular expression), therefore the characters don’t need to occur in the same order in the first string argument. When a character is found, it is replaced with the character that is found at the same index in the second string argument:
'abcde'.tr('bda', '123')
#=> "31c2e"
'abcde'.tr('bcd', '123')
#=> "a123e"
Use gsub when you need to use a regular expression or when you want to replace longer substrings:
'abcde'.gsub(/bda/, '123')
#=> "abcde"
'abcde'.gsub(/b.d/, '123')
#=> "a123e"