What is Tron?

Billed as a competitor to Ethereum, Tron has received plenty of marketing from enigmatic founder Justin Sun, but what is Tron and what does it aim to achieve?

Watching a video online, trading, making a payment, surfing the web, and anything that is practically done on the internet needs a centralised platform which comes with a lot of negativity such as privacy leaks, data distortion and so on. Happily, Tron was born to correct these defects.

Tron is a decentralised blockchain-based operating system similar to Ethereum, with an aim to disintermediate the internet. It is a smart contract platform that offers high throughput, high scalability, and availability of dApps (decentralized applications).

It has an operating system designed in such a way that one can create dApps and share media contents with a native token – TRX – which is used to gain access to certain features of the operating software. The TRX token’s main purpose is used solely on the Tron network. However, it is also a store of value and traded on exchanges, In other words, it is also a virtual currency.

Why was Tron Invented?

Unlike social media platforms like YouTube, Facebook, and Apple (centralised platforms) that have a massive impact over what media is viewed and uploaded on their platforms, they receive the vast majority of the earnings generated by the media and creators receive peanuts from the earnings,

Tron was set up to correct this by disintermediating the middle man. It makes it possible for viewers to reward creators via the Tron network using the TRX tokens. Summarily, the media is owned and controlled wholly by creators.

Why use TRX?

Tron’s native token is Tronix with a price of $0.10624 as seen on CoinGecko at time of writing.

It has a circulating supply of 72 billion TRX coins and a total supply of 101 billion. Tronix is necessary to use applications such as the Tron-based game or service on the Tron network and it is also a prerequisite to participate in Tron’s consensus system which means TRX is needed to stake coins and vote on the conduction of the protocol’s operation. 

How does Tron Work?

Just like Ethereum (ETH), it uses an account-based model which means the cryptographic keys can control access to both TRX and TRX token balances which then routes the data exchange via three layers:

  • Core Layer – By computing code instructions written in Solidity (Ethereum based language) and sends it to the Tron Virtual Machine, which then executes the logic.
  • Application Layer – Developers use this to make wallets and apps that use the TRX and are compatible with the software.
  • Storage Layer – Designed to separate blockchain data from its current state data (which preserves the status of smart contracts).

Delegated proof-of-stake

Tron employs a mechanism in which a rotating cast of 27 ‘super representatives’ is entrusted with validating transactions and maintaining the system’s history in order to reach a consensus on its ledger. Every six hours, super representatives are chosen and given the authority to gather fresh TRX generated by the protocol.

What are the benefits of Tron?

  • Fees: Unlike the Ethereum-based blockchain with high fees, transactions done on Tron are without fees.
  • Fast Rapid transactions: Tron has the capacity of 2,000 TPS (transaction per seconds) unlike Bitcoin which can handle 3-6TPS and Ethereum up to 25. Such huge capacity for transaction shows potential for a scalable future for revolutionising online media
  • dApps: Decentralised apps can be created on the network in which contents can be offered on it and digital assets can be received in return either in TRX tokens or in a token created which is underpinned by TRX

Why buy and sell TRX

Tron has become recognised for its large expenditures to buy or partner with new services, not only because of its vision of decentralising the internet.

You may be selling TRX at a profit (or loss) depending on when you started buying Tron, which could affect your portfolio and have broader repercussions for your money. TRX is a cryptocurrency, which means it is traded on a market that is open 24 hours a day, seven days a week. As a result, buyers may pay higher or lower prices depending on when you decide to sell TRX.

TRX’s price fluctuates in relation to other crypto assets (such as BTC or XMR) as well as fiat currencies. Also, if you’ve been staking TRX, be aware that there may be a time delay before you can unlock your funds.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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