What Is Tron (TRX) and How Does It Work?
In this article we will talk about one of the most ambitious projects in the crypto industry over the last few years. Its creators propose to decentralize the entire Internet. The project is called Tron. The token of this project is Tronix or TRX.
Below, we will tell you everything you need to know about this cryptocurrency and about this project: the story of its creation, how it works, and its advantages. So after this article, you will have a full understanding of what the player called Tron is like in the vastness of the blockchain.
What is TRON (TRX)?
This project was launched in 2017 based on blockchain. Contrary to numerous other competing projects that were trying to come up with new technologies, this one used ready-made solutions. Smart contracts, tokens, decentralized applications, and consensus proof-of-stake were developed not by Tron itself, but by other companies. In particular, because of this, the Tron TRX caused controversial opinions among critics: some did not like the fact that Tron did not bring anything innovative, while others considered it an advantage, because the project uses already proven tools.
Tron's market strategy was initially aimed at Asia, which is not surprising, because the founder of the Tron network and Tron CEO Justin Sun was already a fairly successful entrepreneur in China at the time of the creation of the new blockchain startup.
The TRX cryptocurrency gained even greater mainstream attention in 2018 when the non-profit development company behind Tron, the Tron Foundation, acquired peer-to-peer content sharing platform BitTorrent.
Where did TRON come from?
Having a solid knowledge base, experience in the crypto industry and influential partners, Justin Sun easily raised funds for initial expenses for a new project during the ICO, registered the Tron foundation company and created Tron. At that time, the project had nothing but a website with bold statements, but the trust of the community was so great that the amount collected for the ICO was $70,000,000. This is how the history of the project began.
Initially, it was announced as a platform for sharing entertainment content. It was assumed that each person creating content and posting it on the Tron network would receive remuneration from other participants in the internal currency of the project in the form of Tronix or TRX token.
Initially, the Tron ecosystem in the test version worked on the Ethereum blockchain, but soon switched to its own blockchain.
How does Tron work?
In order to finally switch from the Ethereum network to the Tron network, it was necessary to attract investors who transferred their Ethereum coins to the TRX cryptocurrency.
Ethereum and Justin Sun’s project are similar in that they use a model based on accounts. In other words, the cryptographic keys that the protocol issues can control access to the balances of TRX and TRX tokens.
The Tron blockchain then routes the exchange of this data through three layers:
- The Core Layer performs computations in Java or Solidity code and transmits them to the Tron Virtual Machine for execution of the programmed logic.
- In the Application Layer, developers can leverage the power of TRX cryptocurrency to build wallets and applications that seamlessly align with the software.
- The Storage Layer is strategically designed to fragment blockchain data, comprising a complete history of the blockchain, as well as its state data, which faithfully maintains the status of smart contracts.
The Tron blockchain can be partially attributed to the blockchain using the proof-of-stake consensus. For Tron, this is a delegated proof of stake (DPoS). Blocks are generated every 3 seconds, and the maximum transaction performance is 200 transactions per second.
27 super representatives / validators are appointed to verify the transaction, which are selected from several hundred node operators every 6 hours. For the block, the super representative receives a reward of 32 Tron TRX. This reward can be spent on buying votes to keep control of the network longer.
In total, 3 types of nodes work in the blockchain:
- Supernodes / candidates for super representatives.
- Full nodes / broadcast transactions and locks.
- Solidity nodes synchronize blocks from full nodes and provide an API.
What are the benefits of TRON (TRX)?
One of the main advantages is what we have already mentioned: the ability of Tron users to contribute to the work of the Tron network as super-representatives and receive remuneration. This is beneficial for both parties, both for the project and for users.
Justin Sun has created a unique decentralized platform for hosting content and rewarding users for producing this content. Plus, it has quite low transaction fees: only 0.000005 US dollars.
Previously, the Tron network could boast of a transaction speed of 2000 per second. This is really a good result, and just a couple of years ago, the Tron network overtook the Ethereum network and the Bitcoin network in terms of transaction speed. However, nothing stands still, and Ethereum with the transition to PoS consensus has increased the speed of transaction processing at times. But nevertheless, the Tron speed is still considered good.
In terms of trading, TRX coins can be traded between global buyers and sellers 24/7. If you are a beginner in this space, please consider learning the various cryptocurrency trading strategies before investing your hard-earned money.
How can you buy TRON tokens?
Tron TRX cryptocurrency can be purchased on the Binance exchange, Kraken, or on OWNR wallet. OWNR is a multifunctional secure virtual currency wallet designed for optimal management of digital assets. You can top up your wallet balance using a bank card.
On the Binance, you first need to create an account, pass verification, then purchase stablecoins (you can use P2P or exchangers). And after all this, you will be able to exchange your stablecoins for cryptocurrency Tron.
In order to buy Tron TRX on the Kraken exchange, you need to have an account on PayPal or on eToro. After confirming your account on eToro or PayPal, on the Kraken exchange, in the "Payment Method" tab, you select a payment instrument that is convenient for you and deposit funds.
How to stake TRON?
For staking Tron, you will need a trust wallet with a certain number of TRX coins so that you can pay transaction fees. Here are some simple steps you need to do to stake Tron TRX.
Get your TRON wallet address
Enter TRX in the search bar and select Tron, and then an address for transactions with TRX should appear in front of you. You copy this address to your trust wallet, and you can use it to enter and withdraw TRX from Trust Wallet to a centralized exchange. Be careful while withdrawing funds through the TRON Network.
Select a TRON validator of your choice
On the wallet's home page, you click on the TRX card. Next, you must select "Stake" from the popup menu by clicking on the blue "More" button. By clicking on "validator," you can choose your preferred validator.
Stake your TRX
The last step is to enter the desired amount of TRX. After selecting the validator, click "Continue" and "Confirm". Your TRX has now been staked, and you will start receiving rewards every two weeks.
The Tron ecosystem is one of the largest and most promising projects in the crypto industry. Overall, the Tron blockchain offers many advantages and innovations in the field of technology, which can make it an attractive choice for users and content developers.
As for the cryptocurrency Tron itself, the token will certainly grow in price with the development of the project. Perhaps, according to analysts, the growth of TRX will not be as rapid as that of some other cryptocurrencies, but in the next 5-10 years, it will definitely be able to bring income.
What is Tron used for?
The Tron protocol is a blockchain-based platform that aims to build a decentralized digital content entertainment ecosystem. It is used for creating and hosting decentralized applications (DApps), smart contracts, and digital assets. The Tron ecosystem aims to empower content creators by allowing them to directly connect with their audience and bypass intermediaries, helping to eliminate restrictions and reduce costs in the entertainment industry.
What is the concept of Tron?
The concept of this project is to build a decentralized entertainment ecosystem that connects content creators and consumers, makes a Tron community, bypasses intermediaries, rewards community participation, and disrupts traditional entertainment models.
Is Tron good to invest in?
Investments in TRX depend on your specific financial situation. Definitely, the TRX cryptocurrency coin will not make you rich overnight. It is recommended to study the project in detail, understand how much you are willing to risk, and make a decision based on your own analysis.
Is Tron the same as Ethereum?
No, these are completely different projects, just from the same industry. Ethereum has another purpose. But both projects have already proven themselves on the market, and they show great potential for the future.
Is TRON built on Ethereum?
No, TRX is not built on the Ethereum network. Tron works on its own blockchain. While both are blockchain platforms, they are separate and independent from each other.
Can you make money on TRON?
It is possible, but only with a competent analysis and the right strategy. Usually people just buy a coin and wait for it to grow. Traders also make a profit on the daily fluctuations of the TRX exchange rate. But in both cases, you need to understand the risks and understand the project in which you are investing money.
*DISCLAIMER: None of the authors, contributors, administrators, or editors associated with OWNR Wallet encourage readers to invest in cryptocurrencies without conducting thorough research on their own. This article is intended solely for educational purposes.