What Is TRON
Tron is a blockchain-based decentralized digital platform that allows you to create decentralized applications and share media content. TRON was launched in 2017 by the Tron Foundation.
TRX token, Tron's own cryptocurrency, is called a virtual currency. It is used in the TRON network when creating and interacting with dApps and gaining access to certain operating software features but can also be traded on exchanges.
Tron aims to host a global entertainment system for the cost-effective sharing of digital content. It can handle 2,000 transactions per second - a significant improvement over Bitcoin's 6 and Ethereum's 25.
The project operates according to several principles. All data on the system is free and not controlled by a central agency, so it enables delivering simple distributed file sharing and driving content creation through financial rewards. It also allows content creators to launch their own personal tokens that can be used within their apps on the network; TRON covers these created tokens.
The final phase of the Tron network development plan is decentralizing the gaming industry so that users can reward the developers directly with their TRX when they purchase the game.
Who Are the Founders of TRON
Justin Sun is the founder of the Tron Foundation. Sun is also the founder of the Peiwo app, an audio content application in China with over 10 million registered users. He is the CEO of Rainberry Inc dba BitTorrent and previously led development for Ripple’s China business.
Sun became a Davos Global Shaper in 2014 and was on the Forbes 30 Under 30 China and Forbes 30 Under 30 Asia list in 2017.
Sun’s business background attracted early interest from investors, including Clash of Kings founder Tang Binsen and CEO of bike-sharing startup OFO Dai Wei, among others.
In total, 100 billion TRX was created during Tron’s initial coin offering (ICO) in 2017.
What Is TRX Used For
Tron has been designed to challenge the media industry and decentralize the entertainment industry by constructing a worldwide free content entertainment system. It uses the blockchain and peer-to-peer (P2P) network technology to eliminate the middleman, i.e., YouTube, Facebook, Apple, Amazon, and Netflix, which largely control media and receive most of its money. It thereby allows consumers to reward content creators directly through the Tron network and the TRX tokens. It also enables content creators to release and circulate their entertainment digital assets.
In other words, Tron is the first decentralized content entertainment ecosystem that makes sure that the originator, not large corporations, owns the media.
The token was initially created as an ERC-20 token based on Ethereum; however, it migrated into its own network in 2018. Tron uses the same basic building blocks as Ethereum, such as decentralized applications (dApps), smart contracts, and tokens. It also uses an account-based model similar to Ethereum, meaning that cryptographic keys provide access to both TRX and TRX token balances.
Tron Blockchain Structure
TRON blockchain is structured as a three-layered system consisting of core, storage, and application layers. Each of these layers is optimized for a specific set of functionalities.
The core layer computes instructions written in Java or Solidity and sends them to the Tron Virtual Machine that executes the logic. Due to its compatibility with Ethereum, Solidity was chosen as the foundational smart contract language for the TRON blockchain ecosystem. This layer also oversees the management of accounts and the smart contracts that power the system.
The TRON storage layer is designed as a powerful distributed data storage system providing a high level of stability and security within TRON’s evolving blockchain-based ecosystem.
Then you have the application layer developers utilize to create wallets and applications supported by the TRON blockchain and powered by the TRX cryptocurrency.
Tron's Delegated Proof-of-Stake
Tron uses Delegated Proof-of-Stake (DPoS), defined as the backbone of the Tron protocol, to achieve consensus on the ledger. It uses a system where a rotating cast of 27 super representatives (SR) is entrusted to validate transactions and ensure the security of the Tron network. Blocks are added to the blockchain every 3 seconds and, for every valid block confirmation, the Tron network pays a fee of 32 TRX to the SR.
The SR is responsible for funding operations and server costs, ranging from $5,000-$10,000 per month.
Users can also operate three types of nodes on the Tron blockchain – witness nodes, full nodes, and Solidity nodes. Witness nodes propose blocks and vote on protocol decisions; full nodes broadcast transactions and blocks.; while solidity nodes synchronize blocks from full nodes and provide APIs.
To vote on network decisions, i.e., super representatives or higher status, the Tron users need Tron Power. To get Tron Power, you need to stake TRX. Every 1 staked TRX accounts for one TRON Power(TP). The longer token owners stake their tokens, the more TP they receive.
Tronix, the TRX token, was introduced into the market through a private sale of 25.7% of the initial token supply in January 2017, followed by an initial coin offering (ICO) for 40% of the supply in August 2017. The Tron Foundation holds the remaining 34.3% of Tron tokens.
Tron coins are not directly mineable. Instead, the consensus network relies on users who stake Tron currency, maintaining a balance of Tron in an eligible cryptocurrency wallet, to power transactions. While the token is primarily used for creating and interacting with dApps, TRX can also be used as an investment or exchanged for other currencies.
Wallets
Because Tron is a popular blockchain, it’s widely supported by many software and hardware wallets. That includes the hardware wallet Ledger and the Tron wallet made by the Tron Foundation.
Make sure that you have thoroughly researched the different advantages and disadvantages of different wallets before choosing one.
Note that if you lose access to your wallet or make a mistake when sending, you could lose access to your TRX and any other Tron-compatible assets held in your wallet.
Tron Advantages
Read on for a summary of Tron's key advantages:
- Fast Transactions — Tron network has the ability to handle far more transactions at a time than other proof-of-work systems, which rely on a massive network of cryptocurrency miners. It claims the ability to handle 10,000 transactions per second with no transaction fees.
- dApps — If you create a dApp on the system and offer content, you can receive digital assets in return. If you are not interested in creating apps, you can use the variety of free dApps.
- Supporting content creators — The Tron network is a great way to support content creators directly on a decentralized Internet.
Where Can You Buy TRX
If you want to buy, sell or trade TRON (TRX), you can do so on exchanges such as Binance Futures, Exx, EtherFlyer, HuobiGlobal, Binance, Cashierest, and Bitrue. Our step-by-step guide on how to Buy Tron will help you get started!
If you want to invest, consider that TRX is a cryptocurrency and is subject to price fluctuations.
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