Tron is one of the biggest blockchain-based platforms dedicated to reshaping the internet through cryptocurrencies. It doesn’t only provide a decentralized transaction processing system but also enables developers to build smart contracts and decentralized apps on its network.
The platform is dedicated to providing data liberation to its users so they may share the content online for free without relying on a third party.
What is Tron (TRX)?
Tron is a decentralized network designed to facilitate content creators. The content creators can share anything from text messages, images, audio, and videos. And they get the opportunity to directly make money from the content they produce. It provides an uncensored platform allowing users to share their thoughts without any restrictions.
This blockchain network consists of four primary features.
Data Liberation – The network allows users to share content on its network for free without any censorship.
Digital Assets – An ecosystem where users have complete rights to the content they’ve produced. And they can accurately track the performance of the content they share.
Personal ICOs – The users can launch their own crypto tokens and raise funds using this platform.
Decentralized Apps (Dapps) – The developers can build decentralized apps and games on this network.
Tron (TRX) Brief History
Sun Yuchen (Justin Sun), the former chief representative of Ripple (XRP), founded Tron in 2017. He’s also the founder of a popular live-streaming app called Peiwo that currently has more than 10 million users. The project was initially launched on the Ethereum blockchain and was later migrated to its mainnet blockchain in 2018.
The TRON Foundation announced a partnership with South Korean electronics giant Samsung in 2019. The project’s skyrocketed during 2020 while many businesses were striving to survive. Samsung started displaying the TRON section on Samsung Play Store in April 2020.
Similarly, the foundation launched BitTorrent Live, the largest peer-to-peer storage platform, in May 2020. Furthermore, the decentralized TRON exchange, JustSwap, was launched in August 2020. By the End of 2020, more than 1400 decentralized apps were running on this network.
The transaction volume of Decentralized apps, on this network, surpassed Ethereum in late 2020 because Tron offers faster and more affordable transactions than Ethereum.
TRON vs Ethereum
Tron is one of the leading Ethereum competitors as it supports smart contracts and decentralized apps (Dapps). The common thing about both blockchain networks is that they use Solidity programming language for smart contracts.
The distinctive factor is that Tron processes 2,000 transactions per second while Ethereum can process only 12-15 transactions per second. However, Ethereum will be able to process around 10,000 transactions per second after the launch of Ethereum 2.0. Interestingly, Tron doesn’t have any transaction fees.
It means the users can transfer millions of dollars from one account to another without any charges. On the contrary, Ethereum charges a high amount of money in terms of gas fees. And most of the time, the gas fee is pretty high because of increased traffic.
How Does Tron Work?
Tron network consists of three important layers that ensure smooth operations on the network.
Core Layer – The users can write instructions in two programming languages including Solidity and Java. The instructions are transferred to the Tron Virtual Machine once they’re processed on the core layer. The virtual machine executes logic based on the instructions received.
Application Layer – The developers can build wallets and applications on this layer. These programs are powered by Tron and TRX tokens.
Storage Layer – This layer doesn’t only store the blockchain’s transaction history but also stores the data of smart contracts.
Tron operates through a delegated proof-of-stake (DPoS) consensus protocol which is slightly different from the standard proof-of-stake (PoS) protocol. In a PoS consensus mechanism, the network chooses and rewards the validators based on the number of tokens they’ve staked.
In a DPoS mechanism, the nodes are selected through a voting process. In the case of Tron, these nodes are called “Super Representatives”. The community members choose 27 super representatives through voting and the process repeats every 6 hours. These representatives help with smoothly running the blockchain operations by validating transactions to create new blocks.
The network rewards 32 TRX to these validators for their efforts. The network isn’t just limited to super representatives (nodes) but the users can operate three other types of nodes in this ecosystem.
Full Nodes – These users help with broadcasting transactions and blocks.
Witness Nodes – These users can vote on protocol decisions and propose blocks based on the available data.
Solidity Nodes – These users generate APIs based on the data generated by full nodes.
What Are the Use Cases of TRX?
TRX is the native token of the Tron network that can be used for several purposes. With a circulating supply of 101 billion TRX tokens, it has a market cap of $6.2 billion. According to live data, TRX is the 22nd most popular cryptocurrency in terms of market cap.
Power Smart Contracts – TRX powers smart contracts and Dapps that run on its network. The users can directly pay TRX tokens to the creators and curators to appreciate their work.
Governance – The TRX token holders can vote for the changes in protocol depending on the number of TRX tokens they hold.
Staking – In this network, the users don’t directly act as validators but they delegate their coins to 27 Super Representatives. Each super representative needs to have 100 million votes to become a validator. 1 vote is equal to 1 TRX token. Once the transaction is processed, the TRX tokens are distributed among TRX token holders based on the number of tokens they’ve staked.
TRON is an important participant in the adoption of web 3.0 as it allows users to share content on its network for free without any restrictions. It also supports smart contracts and decentralized apps while providing fast transaction speed with very low transaction fees. If you need more information about the Tron network, feel free to leave a comment.