TRON (TRX) is a blockchain project established in 2017, and unlike many others at the time, TRON didn't introduce groundbreaking cryptography or network design improvements.
Instead, it built upon existing foundations like decentralized applications (dApps), smart contracts, tokens, and the delegated proof-of-stake consensus, which was pioneered by other projects. While some critics argued for more originality, many users appreciated using proven features over reinventing the wheel.
This approach allowed for a stronger emphasis on user experience and design. The TRX cryptocurrency garnered even more attention in 2018 when the TRON Foundation acquired the peer-to-peer content-sharing platform BitTorrent.
In this article, explore TRON's origins, its unique features, and the potential it holds for reshaping Web 3.0
How does the TRON network (TRX) work?
TRON has developed a compact, fully functional virtual machine within its ecosystem known as the TRON Virtual Machine (TVM). The goal was to provide a specialized blockchain system that is efficient, secure, reliable, practical, and scalable. TVM-compatible tokens are generated through smart contracts using the TRC-20 technical standard and are fully compatible with ERC-20.
In addition to this, TRON's architecture comprises storage, core, and application layers. The core layer encompasses modules for consensus, account management, and smart contracts. TRON employs a Delegated Proof-of-Stake (DPoS) consensus mechanism for achieving agreement.
Through this consensus, TRON allows users to use their currency holdings to vote for different delegates. Once elected, these delegates have the authority to make crucial decisions that impact the entire network.
TRON Virtual Machine (TVM)
TRON uses an efficient instruction set and a stack-based virtual machine. Smart contracts on TRON are coded in Solidity and other advanced languages. Additionally, TRON employs a distinct distributed storage protocol composed of Block Storage and State Storage.
The concept of a graph database was integrated into the storage layer's architecture to address the diverse data storage needs of the real world.
Developers on TRON can create various DApps and unique wallets. Furthermore, the potential for utility applications is vast, as TRON allows for the deployment and execution of smart contracts.
Governance mechanism
The TRON committee operates similarly to an on-chain governance system within the TRON network. Its function involves adjusting TRON's parameters, such as block production rewards and transaction fees. Comprising the 27 Super Representatives (SRs), each SR can propose modifications. Proposals are deemed valid if they secure over 18 approvals from other super representatives, taking effect in the subsequent maintenance period.
Super representatives
Twenty-seven super representatives (SRs) are tasked with maintaining the transaction ledger in the TRON ecosystem and validating transactions. Every six hours, a super representative is selected and receives a TRX coin as a reward for their services. A new block is appended to the TRON blockchain every three seconds, and those responsible for adding blocks receive 32 TRX coins.
TRON network: node types
The TRON network relies on three distinct types of nodes: Super Node, Full Node, and Solidity Node.
- Super nodes (Super representatives) propose new blocks and verify and record transactions into these blocks. Their information is publicly accessible to all Tron blockchain users through tools like Tronscan, TRON's alternative to Etherscan.
- Full nodes possess comprehensive control over on-chain data, enabling real-time data updates, transaction broadcasting, and the provision of API (Application Programming Interface) services.
- Solidity nodes specialize in synchronizing solidified block data from a specified Full Node and offering indexable API services.
Account-based model
The TRON network encompasses three types of accounts: regular, token, and contract. These accounts serve specific functions within the TRON Network.
Who Founded TRON?
TRON was established and conceived by entrepreneur Sun Yuchen, more commonly known as Justin Sun. He has twice been recognized as one of Forbes' "30-Under-30" in Asia.
Before TRON, Sun launched the audio content application Peiwo. In addition, he served as a representative for Ripple in 2015. Sun's entrepreneurial background garnered early interest from investors, including Tang Binsen, the founder of Clash of Kings, and Dai Wei, the CEO of bike-sharing startup OFO.
What is the TRON DAO
TRON DAO is a community-governed, decentralized autonomous organization (DAO) connected to a diverse and growing blockchain ecosystem. It was formerly known as the TRON Foundation but was rebranded in December 2021 to reflect its new focus on decentralization and community governance.
The DAO oversees the development and governance of the TRON blockchain and its associated decentralized applications (dApps) and projects. The DAO is governed by its members, who are holders of the TRON cryptocurrency (TRX). Members can vote on proposals to change the TRON protocol, allocate resources to new projects, and elect representatives to the TRON Council, the DAO's executive body.
TRON DAO aims to make TRON the world's leading blockchain for decentralized applications and to empower developers and users alike to own and govern the ecosystem.
What makes TRON different?
TRON (TRX) stands out as a unique cryptocurrency due to its unique perspective and objectives in the market. TRON's decentralized platform also has remarkably low transaction fees, as low as $0.000005, which is a notable achievement. The network can also handle 2,000 transactions per second. In contrast, Bitcoin (BTC) allows for only 25 transactions.
Holding and staking TRX allows users to engage in the super representatives' selection process. Additionally, the platform's ability to compensate content creators for their contributions while enabling them to own their projects fully is a valuable concept.
This makes TRON's cryptocurrency ecosystem distinctive, allowing you to share content and earn compensation for your contributions as a content creator.
Regarding trading, TRX coins are available for exchange around the clock among global buyers and sellers. If you're new to crypto, we recommend familiarizing yourself with various cryptocurrency trading strategies before investing your funds.
TRON DAO Competitors
TRON is currently in competition with some of the prominent projects in the DeFi sector, all vying to be the preferred solution for developers seeking a cost-effective and scalable blockchain. Notable competitors include:
- Ethereum: A Delegated Proof-of-Stake (PoS) blockchain that enables software developers to build on top, incorporating smart contracts, dApps, and other programs using Solidity, Ethereum's supported coding language linked to the Ethereum Virtual Machine.
- Cardano: A Proof-of-Stake blockchain founded by IOHK, a company established by Charles Hoskinson, a software developer and co-founder of Ethereum.
- VeChain: A platform for supply chain management designed to enhance information flow for intricate supply chains through blockchain technology.
TRON (TRX)
TRON DAO has its native coin, TRX or Tronix, serving as the fundamental unit of accounts powering the TRON blockchain. Transactions with TRX are fee-free, allowing users to directly pay content creators with TRX for accessing their applications.
TRX was primarily developed to reward content creators, eliminating the need for them to pay fees to the network. This empowers content creators to own and operate their media platforms without relying on third parties, enabling viewers to reward them for their content directly.
Origins of TRON (TRX) in numbers
TRON's native coin initially entered the market through an ICO, securing approximately $60 million in funding. TRX was launched with a maximum supply of 100,850,743,812. Currently, there are 88,813,373,344 TRX coins in circulation.
As of this writing, TRON (TRX) holds the 10th position in the list of top cryptocurrencies by market capitalization, with a total value of approximately $8.38 billion.
In January 2018, TRON achieved its highest value of $0.131. Despite facing challenges, particularly in the overall market conditions, TRX is currently experiencing a steady upward trend in price, gradually gaining momentum alongside the growing popularity of the crypto sector.
TRX Staking
Like most Proof-of-Stake (PoS) networks, TRON enables users to stake TRX, granting them voting rights and TRX rewards. Users can stake TRON on wallets by locking their funds and receiving voting rights and TRON power.
Where to buy TRX
You can buy TRX on cryptocurrency exchanges such as Coinbase, OKEX, Binance, or Huobi. Another method of acquiring TRX is by becoming a validator and locking funds to receive TRX rewards i.e. staking.
Security measures in the TRON network
TRON's primary security feature is its delegated proof-of-stake consensus mechanism. This system regularly changes network validators every six hours, selected by voters (users who have staked their TRX).
In an innovative approach to combat the ongoing stream of bugs associated with software development, the TRON community has the opportunity to contribute to development and earn rewards through the Bug Bounty Program. This initiative offers substantial TRX rewards for identifying and reporting any bugs or vulnerabilities.
How to use the TRON network
Currently, the TRON network can support a range of applications and games. In addition to its primary function as a platform for content creators, TRON is frequently used for transactions, as TRX transactions incur very few amounts as fees.
Many companies, including Travala, SpendCard, Bitnovo, and others, accept TRON as payment. Furthermore, Tether has migrated its stablecoin, USDT, to TRON's network.
Choosing a TRON Wallet
Since TRON is a well-established cryptocurrency, it is compatible with various software- and hardware-based wallets. Users have numerous options, and the decision ultimately depends on their requirements.
Tangem Wallet offers a secure storage solution, allowing you to store and manage your TRX coins easily. Storing your TRX with Tangem’s self-custodial cold wallet provides top-notch security and user-friendly functionality.
You can seamlessly buy, sell, or exchange TRX for other cryptocurrencies in the Tron-branded Tangem Wallet.
Is TRON a viable investment?
Analyzing TRON's network activity reveals a significant focus on gaming, gambling, and video streaming dApps. Despite this, TRON is steadily expanding its users as more developers and crypto users search for alternative blockchains with lower fees and quicker transaction speeds than Ethereum. The addition of USDCoin support led to over $108 million in circulation on the TRON network within a month, indicating a growing interest in alternative protocols.
Conclusion
TRON stands out as a distinct cryptocurrency project, integrating various technologies pioneered by other projects into a cohesive system. The TRON network provides a solution for content creators facing issues with censorship or centralized content platforms. Additionally, its fee-free transaction system makes it an appealing option for companies and consumers in crypto payments.
FAQ: TRON DAO and Network
What is TRON (TRX)?
TRON (TRX) is a cryptocurrency and blockchain platform designed to create a decentralized internet. It aims to provide a platform for content creators to distribute their content without intermediaries and offer a secure, fee-free environment for digital transactions.
Who is the founder of TRON?
TRON was founded by Justin Sun in 2017. He has been a prominent figure in the cryptocurrency space and is known for his vision of creating a decentralized web.
What is the purpose of TRON?
TRON's primary purpose is to decentralize the web by offering a platform for content creators to interact with their audiences directly. It also provides a foundation for creating decentralized applications (DApps) and a secure ecosystem for digital transactions.
How does TRON's technology work?
TRON uses a delegated proof-of-stake (DPoS) consensus mechanism, where TRX holders elect network validators. It also employs smart contracts to enable the creation of DApps. The TRON Virtual Machine (TVM) allows developers to execute smart contracts on the TRON network.
What sets TRON apart from other cryptocurrencies?
TRON is unique in its focus on decentralizing the internet and providing a platform for content creators. Its fee-less transaction system and high throughput make it appealing to users and developers. Additionally, it has gained attention for acquiring BitTorrent, which has contributed to its decentralized content-sharing vision.
Where can I use TRX?
TRX can be used for various purposes, including content creation and sharing, and in some online stores and services that accept TRX as payment. It can also be traded on multiple cryptocurrency exchanges and crypto wallets.
Is TRON secure and scalable?
TRON's DPoS consensus mechanism and ongoing development efforts make it a secure and scalable platform. However, like all cryptocurrencies, users should exercise caution and follow best security practices.
How can I store TRX safely?
TRX can be stored in cryptocurrency wallets, both hardware and software. It's essential to use reputable wallet providers like Tangem and take precautions to safeguard your private keys.