What is TRON (TRX) and How It Works?

TRON is a blockchain platform that aims to further decentralize the internet. Its growing popularity stems from the fact that it is decentralized, open source, proof-of-stake, and has smart contract functionality. It’s no wonder that this project has a huge fan base in the crypto world. Let’s take a look at what’s going on under the hood of Tron and whether it’s worth investing in this project.

To imagine a decentralized internet, we first need to conceptualize the current centralized version. Centralized actors dominate the current version of the internet. Companies like Google, Facebook, and Amazon own and control the data we all create. This makes these intermediaries very rich, while the rest of us not only have no profit, but we also have no idea how and for what our data is being used.

Tron aims to solve this problem by establishing a decentralized internet that is controlled and owned by the individuals who use it. With this vision, the network has achieved excellent results since its inception in September 2017, gaining the trust of professionals and individuals in the industry.

What is TRON?

Tron is an open-source blockchain platform designed as the infrastructure for a decentralized internet. It enables the implementation of smart contracts, which form the building blocks of decentralized applications, or dApps; applications that run on top of the Tron network of nodes, so that they cannot be shut down or controlled by a single person or entity. The protocol allows users to publish, store, and own data. Using an autonomous decentralized format, users can choose how to share data. The exact format enables subscriptions and push content by publishing and circulating digital assets.

In July 2018, Tron also acquired BitTorrent, a pioneer in decentralized services with nearly 100 million monthly active users, and integrated it into its ecosystem. In addition, Tron, which surpassed Tether (USDT) on Ethereum in April 2021, has the world’s largest circulating supply of stablecoins. However, in August 2022, Tron even surpassed Binance Smart Chain’s Total Locked Value (TVL) by $200 million and now has three times more transactions than BSC, largely thanks to Sunswap’s USDT TRC-20 and DEX.

The Tron Foundation, better known as TRX, issued Tronix, a mainnet token based on the Tron protocol. On the blockchain, TRX tokens serve as the fundamental unit of account, and the value of all other coins is derived from the value of Tron. Other tokens include BitTorrent (BTT), JUSTt (JST), USD Coin (USDC), Tether (USDT), and NFTs.

How Does Tron Work?

A compact virtual machine, known as the Tron Virtual Machine (TVM), has been developed for the Tron ecosystem. It aims to provide a custom blockchain system that is efficient, stable, practical, secure, and scalable. TVM-compatible tokens are implemented using smart contracts based on the TRC-20 technical standard and are fully compliant with the ERC-20 standard.

Then there are the storage, core, and application layers. Consent, account management, and smart contracts are different modules in the core layer. The consensus mechanism is Delegated Proof of Stake (DPoS). This mechanism enables users to vote for various delegates using their respective currencies. Once elected, these delegates have the authority to decide on significant issues that impact the entire network. Transactions are validated by 27 super delegates, who are responsible for monitoring the transaction history in the Tron ecosystem. Every six hours, a super delegate is selected and receives TRX coins produced by the mechanism in exchange for their services. Every three seconds, a new block is added to the Tron blockchain, and those who add blocks receive 32 TRX coins.

Tron’s smart contracts are written in Solidity and other advanced languages. Additionally, the distributed storage protocol developed by Tron comprises Block Storage and State Storage. To better meet the diverse storage requirements of the real world, the concept of a graph database is integrated into the storage layer architecture. Developers can design a wide variety of apps and unique wallets on the Tron network. Additionally, the possibilities for practical applications are endless, as TRON enables the implementation and execution of smart contracts.

What Makes TRON So Special?

A Witness Node, Full Node, and Solidity Node are three distinct types of nodes within the TRON network. Witness nodes create SR and are primarily responsible for creating and voting on proposals and components. Full Nodes issue Application Programming Interfaces (APIs), transactions, and blocks. Blocks from other Solidity nodes are synchronized via Solidity nodes, which also offer indexable APIs.

Who Invented TRON?

Tron was founded by Justin Sun, the former head of Ripple in China. He is considered a protégé of Jack Ma, the founder of Alibaba. At just 32 years old, Sun has an imposing resume. He graduated from the University of Pennsylvania. In 2015, he was included in the Forbes China 30 Under 30 list, and in 2017, he was also included in the Forbes Asia 30 Under 30 list. He is the founder of Peiwo APP (the Chinese equivalent of Snapchat) and a participant in the Hupan University, founded by Jack Ma. Interestingly, the founder of Tron remains largely unknown, unlike the founder of Bitcoin.

In December 2021, Sun stepped down as CEO of the Tron Foundation and handed over control of the project to the non-profit organization Tron DAO, a decentralized autonomous organization.

History

Let’s look at the TRON key milestones:

What is Tronix (TRX)?

Tronix (TRX) is the native coin of the TRON ecosystem. It is used for network transaction fees. The token can also be staked to receive network rewards. It is also used for governance, as TRX holders can vote on network decisions. Unlike mining-based cryptocurrencies, such as Bitcoin, the TRX token was issued at its launch. Finally, as of November 2022, the total supply of TRX tokens is 92.2 billion, and the foundation reports that it has maintained a deflationary state since October 2021. TRX is divisible; the smallest TRX unit is called a SUN, where one TRX is equivalent to 1,000,000 SUNs.

Tronix is not so much a cryptocurrency as it is a unit of value. With its TRX token, Tron aims to facilitate the exchange of digital assets without the need for an intermediary. TRX, therefore, acts as a ledger that records transactions on the network, ultimately becoming a store of value that content creators can utilize as they see fit.

Where Can I Buy TRX?

TRX is now available on all major exchanges, including Binance, Kraken, and Coinbase. Consequently, below is an example of how to buy the token via the Binance exchange:

✅ Step 1: Create your Binance account and top up your balance with USDT.

✅ Step 2: Click “Buy Crypto” in the top left corner of the website navigation and you will find “TRX”.

✅ Step 3: Choose a payment method: Credit or debit card, bank transfer, P2P, or choose a third-party payment.

✅ Step 4: Safely store your TRX tokens on Binance.

TRON: Pros

✅ Data release	This means allowing free and uncensored data flow through the network.
✅ Digital assets	Creating an ecosystem where users can own the rights to content and monitor its spread.
✅ Personal ICO	Anyone can raise funds and distribute digital assets.
✅ More than smart contracts	Implementing infrastructure that will enable the use of more complex assets, such as games and market predictions, on the platform.

TRON: Cons

⛔ Lack of decentralization

Some critics say that Tron is not entirely decentralized because only 50% of all TRX tokens are stored in different addresses. Additionally, only 15% of the issued tokens are available for private investment.

Conclusion

Tron’s mission is to help those seeking a decentralized protocol for online entertainment. Their vision is therefore the establishment of Web3, a web where users will be in control. Founder Justin Sun’s critics argue that he is reckless and impulsive in his decision-making, a trait that has proven detrimental in the cryptocurrency industry, as evidenced by the collapse of Terra and Three Arrows Capital. But Justin distanced himself from the Tron project, which is now managed by the Tron DAO. It is an interesting project with a far-reaching vision, and time will tell whether it succeeds. The original TRX token is regularly among the top 15 cryptocurrencies by market capitalization and is invested in many investor portfolios. But, as always, invest wisely. Good luck!

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