TRON (TRX) Things You Need To Know Before Investing
Table of Contents
What Is TRON (TRX)?
TRON is a decentralized blockchain-based operating system developed by the TRX Foundation and launched in 2017. Originally TRX tokens were ERC-20-based tokens deployed on Ethereum, but they were moved to their network a year later.
Initially, the project was created to provide full ownership rights to digital content makers. The main goal is to help content creators (who receive only a small part of their income) and encourage them with more rewards for their work. How: invite content consumers to reward content makers directly (without intermediaries like YouTube, Facebook or Apple).
The TRX software supports smart contracts, blockchain systems, and decentralized applications, aka dApps. The cryptocurrency platform uses a transaction model similar to Bitcoin (BTC), namely UTXO. Transactions take place in a public ledger, where users can track the history of operations.
Therefore, the platform was built to create a decentralized Internet and serves as a tool for developers to create dApps, acting as an alternative to Ethereum. Anyone can create dApps on the TRON network, offer content, and receive digital assets as compensation for their efforts. The ability to create content and share it openly without hesitation regarding transaction fees is an undeniable advantage of TRX.
Network principles:
The data hosted on the TRON network is free with no central authority. Content creators receive TRX tokens – a reward for their intellectual labour;
TRON supports the creation of coins by content makers, which can be used in their developed applications;
TRX also carries out decentralized games on the network, and players can directly encourage and reward creators with digital assets.
The ecosystem is based on three levels, which ensure TRON’s smooth and powerful operation. The architecture is as follows:
- Storage Layer, where network data, blockchain state and historical data are securely stored. In general, its purpose is to segment all kinds of ecosystem data;
- Application Layer, where developers are key figures and where TRX is utilized to develop applications and create wallets;
- Core Layer, where various instructions are processed (which can be written only in two programming languages - Solidity and Java). Principle of operation: the core layer computes instructions, processes them, and sends them to the Tron Virtual Machine, where the logic happens and dApps are executed.
The main network protection tool and special features is a Delegated Proof-of-Stake (dPoS) system, an alternative to the Proof-of-Stake and Proof-of-Work consensus algorithms. This is a competitive advantage of TRON because it means that the network is far more energy-efficient. Furthermore, TRX processes more transactions at once than Proof-of-Work (PoW) systems due to its layered architecture. According to the development team, TRX has a higher throughput and can process up to 2000 operations per second without fees. Thus, transactions on the network are feeless.
TRON is a blockchain-based operating system that ensures this technology is suitable for daily use. Whereas Bitcoin can handle up to six transactions per second and Ethereum up to 25, TRON claims that its network has a capacity for 2,000 TPS.
Check out our deep dive into Trx to learn more about this project.
This project is best described as a decentralized platform focused on content sharing and entertainment — and to this end, one of its biggest acquisitions was the file-sharing service BitTorrent back in 2018.
Overall, TRX has divided its goals into six phases. These include delivering simple distributed file sharing, driving content creation through financial rewards, allowing content creators to launch their tokens and decentralizing the gaming industry.
TRON is also one of the most popular blockchains for building DApps.
Who Are the Founders of TRON?
TRON was founded by Justin Sun, who now serves as CEO. Educated at Peking University and the University of Pennsylvania, he was recognized by Forbes Asia in its 30 Under 30 series for entrepreneurs.
Born in 1990, he was also associated with Ripple in the past — serving as its chief representative in the Greater China area.
What Makes TRON Unique?
TRON has positioned itself as an environment where content creators can connect with their audiences directly. By eliminating centralized platforms — streaming services, app stores or music sites — it is hoped that creators won’t lose as much commission to middlemen. In turn, this could also make content less expensive for consumers. Given how the entertainment sector is increasingly becoming digitized, TRX could have a headstart in applying blockchain technology to this industry.
The company also says that it has a talented and experienced developer team based worldwide, drawn from major companies such as Ripple Labs.
Last but not least, whereas some other blockchain projects can be opaque about their development plans, TRON offers a point of difference by delivering a roadmap that shows its intentions for the coming years.
How Many TRON (TRX) Coins Are There in Circulation?
TRON has a total supply of just over 100 billion tokens — and at the time of writing, about 71.6 billion of these are in circulation.
When a token sale was held in 2017, 15.75 billion TRX was allocated to private investors, while an additional 40 billion were earmarked for initial coin offering participants. The Tron Foundation was given 34 billion, and a company owned by Justin Sun got 10 billion.
This meant that 45% of the TRX supply went to the founder and the project itself, while 55% was distributed among investors. Critics argue that this is a much higher ratio than what has been seen with other cryptocurrency projects.
How Is the TRON Network Secured?
TRON uses a consensus mechanism that is known as delegated proof-of-stake.
TRX owners can freeze their cryptocurrency to get Tron Power, which means they can vote for “super representatives” who serve as block producers.
These block producers receive TRX rewards in exchange for verifying transactions, and these rewards are then distributed among the people who voted for them.
According to TRON, this approach helps its blockchain achieve higher throughput levels.
Where Can You Buy TRON (TRX)?
It is possible to buy Tron from dozens of the listed exchanges on Poloniex, Bancor, KuCoin, Binance, Bitfinex, Coinbene and others. However, it is not supported by Coinbase.
