TRON (TRX) – cryptocurrency overview

Established in 2017 by the visionary Justin Sun from China, TRON is a blockchain platform aiming to create a decentralized environment for direct interaction between content creators and consumers, eliminating the need for intermediaries. Currently, the ownership of the platform is held by the Tron DAO entity.

Originally operating on the Ethereum network, the platform later transitioned to its self-reliant blockchain and successfully raised $70 million through an ICO. The blockchain consists of three key components: the fundamental infrastructure, the development of decentralized applications (including smart contracts, consensus mechanisms, and account management), and the storage layer.

DPoS acts as the specified Proof-of-Stake (P2P) system utilized for P2P consensus. Blocks are generated every three seconds, resulting in a rate of one block every three seconds. TRON enables people to create decentralized apps with different coding languages on the network. Although it supports other protocols, Java is the main programming language. The platform facilitates the saving and sharing of video materials and apps.

In what way does TRON operate?

TRON blockchain is built upon a three-tier structure:

• Foundational components encompass consensus modules, smart contracts, the TRON Virtual Machine (TVM), and account management;
• Developers are responsible for creating decentralized applications at the application layer;
• The storage layer handles tasks such as managing network blocks, data segmentation, and monitoring the status of the blockchain.

TRON blockchain utilizes the Delegated Proof-of-Stake (DPoS) consensus mechanism, a concept originally introduced by its competitor, the EOS project. The network can process up to 2000 transactions per second, with new blocks being produced every 3 seconds to ensure optimal performance.

The responsibility of ensuring and creating new blocks falls on the shoulders of 27 super delegates, selected from a diverse pool of hundreds of node operators to act as validators. If the super delegate overseeing the creation of block 1 and processing transactions decides to transfer 32 TRX to the next block, they can opt to buy votes using all or part of the rewards to maintain control over the network.

By entrusting their coins to super delegates and participating in TRX betting, users can expect a yield of approximately 4% (based on Betting Rewards data as of August 2022).

On the TRON blockchain, there exist three different types of nodes:

• Candidates striving to become super nodes and super representatives;
• These entities serve as full nodes in charge of validating and broadcasting transactions as well as maintaining synchronization;
• Solidity nodes have been implemented to streamline the process of syncing blocks from full nodes and provide an interface for third-party applications to interact with the blockchain.

What is important to note about Tronix?

The main cryptocurrency used for transactions within the blockchain ecosystem is Tronix (TRX), which is the platform’s native token.

Consequently, Tronix serves as a means of covering TRON transaction fees and rewarding users, all while ensuring the functionality of applications built on the platform. With Tronix, users have the opportunity to acquire a variety of tokens and coins compliant with the TRC 20 standard, as well as invest in other cryptocurrencies.

Introduced in 2017, Tronix emerged as an alternative digital currency associated with Ethereum’s ERC-20 protocol.

After the ICO ended, the TRON blockchain was established, allowing the cryptocurrency to move to the TRC 20 network in June 2018, marking the platform’s first year. By immobilizing TRX, users are granted Tron Power (TP) tokens, giving them the ability to engage in selecting super representatives and evaluating network development suggestions within the decentralized governance system of the Tron DAO entity.

What contributes to the popularity?

The emergence of USDT stablecoin in 2019 had a massive impact on driving the adoption of the TRON blockchain. Users enjoyed much lower fees when transacting with USDT on TRON compared to Ethereum and Omni. While Ethereum transactions incurred costs of $1.5-2, TRON charges only about $1 on average.

Additionally, a myriad of other elements have also contributed to the increasing attraction of the TRON blockchain:

• Augmented transaction speed. The maximum transaction capability can reach up to 2000 transactions per second. Both regular users and developers engaged in crafting applications with diverse internal features have shown appreciation for this aspect.
• Transaction fees are extraordinarily budget-friendly. Contrasted with Ethereum, TRON’s fees are significantly cheaper, rendering it a more cost-efficient option. Despite Ethereum’s surging popularity, numerous users are transitioning to TRON because of its lowered transaction costs.
• Cutting-edge smart contracts and distributed applications (dApps). The main objective set by the originators was to establish a platform for developers to design complex distributed applications. Utilizing smart contracts, a wide variety of dApps covering sectors from entertainment and social networking to online shopping and financial solutions, have now become feasible.
• Utilizing consensus. It operates through a Delegated Proof-of-Stake (DPoS) mechanism on the TRON network. The network functions by allowing token holders to vote for super representatives (validators) who generate blocks. This process takes place every six hours.

Moreover, individuals are empowered to partake in voting and networking to secure rewards. Those in possession of cryptocurrency are motivated to bolster the network and play a crucial role in its governance, all while sharing in the profits derived from its operations.

The history of TRON development

The journey of TRON’s expansion began in 2017 when the team united to devise a strategic ten-year plan to guide the advancement of the initiative. The plan included six distinct phases:

• 2017-2018 – Exodus. Leveraging blockchain technology to establish a decentralized file sharing platform and execute token offerings.
• 2019-2020 – Odyssey. Unveiling the primary net and offering incentives to entice creators to join in.
• 2020-2021 – Great Voyage. Initiating the Tron blockchain for potential opportunities in initial coin offerings.
• 2021-2023 – Apollo. Empowering creators to mint their very own TRC-20 tokens.
• 2023-2025 – Star Trek . Establishing a decentralized platform catering to gaming, predictions, and beyond.
• 2025-2027 – Eternity. Advancing society and reaping rewards from communal advancement.

Overall, this approach remains pertinent to this day. During the winter of 2019, Justin Sun acquired the decentralized live streaming platform DLive in order to integrate it with BitTorrent, and subsequently transferring it to the TRON and BTFS blockchain. In August 2021, the TRON Foundation announced the creation of the TRON Arcade fund, which will be funded with $300 million over the next three years, with a focus on blockchain projects related to GameFi and Play2Earn games. A partnership between the TRON Foundation and APENFT resulted in the establishment of a $100 million fund designed to support NFT initiatives in the fall of 2021. They provide artists with guidance not only on creative pursuits but also on legal matters such as copyright protection.