By Sabina Muradova
On Nov 15, 2020
Tron (TRX) is the cryptocurrency that has managed to be in the Top 20 list by market value for a long time. Despite being extraordinary, it is also a cryptocurrency that has become famous in a short time. So what is Tron? What are the features that make Tron different? You will find answers to all your questions about this crypto in this blog.
TRON is an open-source, decentralized operating system designed to create content without intermediaries. In other words, you can think of Tron as a next-generation “entertainment” platform where users can share everything from photos to videos in a decentralized way. Just like many cryptocurrencies, Tron relies on blockchain technology to manage its operations. By examining its definition, it becomes clearer how indispensable this platform is for the future.
Every new cryptocurrency is emerging with unique goals. TRON’s goal is to become a decentralized platform for the digital entertainment industry. It is designed for users to create content and share it with anyone they want.
Tron is often compared to Ethereum for many of its features. Just like Ethereum, Tron is also a blockchain-based platform and has its dApps and smart contracts that run them. Both are committed to being a decentralized internet platform, but Tron is more focused on the entertainment sector. Another distinctive feature of Tron is that it is designed to create legal, blockchain-based casino gambling type games.
Tron currently stands out among other cryptocurrencies for its transaction speed. According to the Tron website, Tron (TRX) can handle 2000 transactions per second. In the Etherum network, this figure is very low. Only 25 transactions can handle per second. Tron (TRX) developed as a solution to Ethereum’s lack of scalability.
Tron was developed in early September 2017 by the Singapore-based Tron Foundation, a nonprofit led by Justin Sun. During this period, there was an unprecedented increase in the total capitalization of the cryptocurrency market. The leading cryptocurrency Bitcoin was on the verge of reaching an all-time high. In the ICO campaign created by the Tron Foundation, the developers managed to raise more than $ 70 million. Even if the market value of TRX tokens was only $ 0.0019 during its ICO, but now a TRON coin costs about $ 0.025. Now, Tron Foundation’s examination was conducted at the Singapore Corporate Law and Accounting and Regulatory Authority (ACRA).
Tron was created as an ETH20 token based on the Ethereum platform. At this period, Tron gained incredible success and even reached the top 10 by market value. This result prompted its founder, Justin Sun, to make a revolutionary decision. In 2018, Tron’s first genesis block was created. So, Tron lost its token title, and with Tronix, officially launched as the primary cryptocurrency used on the blockchain. Immediately after, Tron token holders in ERC20 exchanged them for TRX Coin in the Tron network. The same year, Tron purchased BitTorrent, the pioneer, largest peer-to-peer file-sharing platform on the Internet, for $ 140 million. The acquisition of a platform with an active user base such as BitTorrent proved once again that how much Tron aims to be the main decentralized sharing ecosystem.
Justin Sun, the founder of the Tron platform, is one of the influential names in the crypto world. He is the CEO of BitTorrent and Ripple’s former chief representative and advisor in China. With his success, Justin Sun was on the Forbes China “30 under 30” list in 2015 and Forbes Asia’s “30 under 30” list in 2017. Sun, who is also friends with Alibaba‘s co-founder Jack Ma, is also the founder of the mobile social application Peiwo.
The 30-year-old Chinese investor has a remarkably strong background for someone of that age. Justin Sun’s successful identity is one of the main reasons the TRON platform has gained so much trust from many people. Sun is the key figure of the Tron platform. You can think of the bond between Tron and Justin Sun as the bond between Ethereum and Vitalik Buterin.
Unlike other blockchain-based platforms, TRON carries out its progress between 2018-2025 with the six-phase development roadmap shown below.
We now know that the native cryptocurrency of the Tron network is Tronix (TRX). However, in addition to it, TRON20 and TRON Power (TP) tokens are also used in the platform. TRON 20 was intended for the developers of the platform, enabling them to issue coins for their applications. On the other hand, Tron Power (TP) token is the resource that users refer to vote for super representatives or to improve the network when TRX is blocked.
In the TRON ecosystem, users / TRX coin holders choose the nodes to confirm their transactions in the block using the DPOS consensus mechanism. TRX coin holders stake their TRX in Tron power at a ratio of 1: 1. Later, the community then uses their Tron Powers to vote on “Super Representatives.” The 27 candidates with the most votes are elected as Super Representatives every six hours and respectively oversee block generation on the blockchain. Chosen super Representatives receive some of the coin rewards from each block.
As a result, Tron’s main goal is to create a worldwide free entertainment content ecosystem. It aims to give all income into the hands of the content producer by eliminating intermediaries such as Youtube, Spotify, Facebook. Tron is on a mission to create data independence on the platform, create personal ICOs for everyone to collect money, and create digital assets.
Disclaimer: All information provided in the content is for informational purposes only and should not perceive as investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.