TRON has made a lot of noise in the crypto industry, primarily for the right reasons but also for causing some controversy. Its Tronix cryptocurrency (TRX) has made it into the top ten most valuable currencies in the world in 2018.
What is Tron ($TRX)?
TRON is a multi-purpose smart contract platform for developing and deploying decentralized applications (dApps). It utilizes a delegated Proof-of-Stake (DPoS) consensus process, which improves efficiency but sacrificing genuine decentralization and resilience to censorship. Founded in 2017 by tech entrepreneur Justin Sun,Tron is a permissionless protocol that aims to democratize the content distribution industry. Its native coin is called Tronix (TRX). Without contributing a dollar to Tron, you may use TRX to transact with content creators. All TRX transactions on Tron are completely free. TRX was previously an ERC-20 token based on Ethereum but switched to its own platform in 2018.
Tron’s blockchain then conducts this data exchange across three layers:
Core Layer: Computes instructions written in Java or Solidity (an Ethereum-specific programming language) and transmits them to the Tron Virtual Machine for execution.
Application Layer: Utilized by developers to produce wallets and applications that are compatible with the software and powered by the TRX coin.
Storage Layer: Designed to distinguish between blockchain data (a record of the blockchain’s history) and state data on the blockchain.
What is Delegated Proof-of-Stake (DPoS)?
The TRON consensus process is based on a Delegated Proof-of-Stake (DPoS) system in which the network’s blocks are created by 27 Super Representatives (SRs). TRX account users who have frozen their accounts can vote every six hours for a selection of SR candidates, with the top 27 candidates being designated as SRs. Voters can select SRs based on a variety of criteria, including programs supported by SRs aimed at increasing TRX usage and prizes provided to voters.
The accounts of SRs are regular, but their vote accumulation enables them to create blocks. Every three seconds, the TRON protocol network creates a block, with each block paying 32 TRX to Super Representatives. Each year, the 27 SRs will get a total of 336,384,000 TRX. Reward payments are paid to a sub-account in the super-ledger after an SR completes block production. Meanwhile, SRs can inspect but not directly utilize these TRX tokens.
What is the project trying to achieve?
Tron enables developers to create and deploy decentralized apps (dApps) for virtually any purpose, including online games, decentralized exchanges, yield farms, and open lending systems. Tron’s core purpose is to provide individuals with access to material that is not geographically, censorially, or otherwise constrained. TRX is used by network users to pay content providers for access to their apps, bypassing corporate intermediaries like as Amazon or Netflix. Simply put, this means that people who own Tron will have complete control over the data they generate, including the manner in which it is transmitted to the public. Users can keep their cryptocurrency holdings on a desktop computer, a mobile device, or a hardware wallet.
What is the unique selling point?
TRON is designed to power a decentralized internet in which users may access material without regard for geographical boundaries, censorship, or restrictions. It incorporates a variety of elements that contribute to this purpose, including the following:
Governance: As more blockchain platforms adopt on-chain governance, TRX holders will be able to actively shape the platform’s future by choosing the super representatives and super representative partners who will eventually enforce the community’s decision. Users that stake their tokens to vote will get a share of the network rewards.
Token Support: TRON, like other smart contract platforms such as Ethereum and Binance Smart Chain, offers a number of token standards, which enables developers to power a variety of unique use cases. These standards include the TRC-20, TRC-10, and TRC-721 (non-fungible) tokens.
High Scalability: TRON was built to handle large on-chain scalability, enabling developers to create apps capable of supporting tens of thousands of users concurrently. TRON’s DPoS consensus technology now enables it to easily manage roughly 2,000 transactions per second (TPS), although there are plans to increase this number in the future.
Affluent Ecosystem: TRON has a well-developed ecosystem of DApps and DeFi products being one of the early smart contract platforms to migrate to mainnet. This includes BitTorrent, a decentralized file-sharing protocol, PoloniDEX, and the JUST network of DeFi platforms. TRON’s virtual machine is compatible with the Ethereum Virtual Machine (EVM), which enables developers to quickly migrate their DApps from Ethereum or other EVM-compatible blockchains to TRON.
The pros of purchasing TRX
Purchasing TRX tokens and utilizing them to access content and services on the TRON network directly benefits the author.
Transactions at a High Volume: The platform is intended to execute TRX transactions in bulk without sacrificing execution speed.
Transaction Fees Are Non-Existing: Transactions on the TRON network are not just quick, but also fee-free.
User Data Privacy: Unlike traditional digital content platforms, TRON uses cryptographic keys to secure user data from third-party use.
Prosperous Future: By including the creation of dApps, it is quite likely that multiple apps will be developed on the TRON network in the future, thereby increasing the value of TRX.
TRON appears to be a preferable alternative to Bitcoin or Ethereum due to its greater throughput and scalability.