What Is TRON?
TRON is a decentralized public blockchain founded by Justin Sun in 2017. The major objective of TRON is to support and motivate content creators who currently only receive a small portion of their generated income. The project gives creators greater compensation for their efforts and grants them full ownership rights. Besides, TRON features a vast variety of crypto-based games. The players of these games can accumulate TRX coins and use them to reward and support creators.
TRON is a competitor to the Ethereum blockchain because it enables developers to create decentralized apps (dApps) just like Ethereum does. It also supports a number of blockchain platforms and smart contracts. Besides, TRON rewards creators using their own TRX tokens. Check out the TRON price chart above if you're curious about the current TRX price.
The TRON network aims to implement blockchain technology in the entertainment business sector given how fast it’s becoming more and more digital. By enabling creators to step away from centralized platforms like streaming services or music websites, TRON helps them avoid losing a lot of money to intermediaries. Additionally, viewers have to pay less for the content they want to see as a result of this.
Besides that, TRON is also perceived as a file-sharing platform since it purchased BitTorrent in 2018, which is one of the biggest file-sharing systems.
Overall, the main goals of TRON are the following:
- Providing users with simple distributed file sharing;
- Encouraging the creation of content with rewards;
- Enabling content creators to introduce their own tokens;
- Creating a decentralized gaming sector.
How Does TRON Work?
The TRON network consists of three main layers – Storage Layer, Application Layer, and Core Layer. Storage Layer basically segments any type of TRON’s data and keeps it secure. Application Layer, as the name suggests, is the layer in which developers are able to create dApps. Core Layer essentially calculates and analyzes instructions before sending them to the Tron Virtual Machine, where dApps are executed.
TRON has Turing-complete virtual machine capabilities because it was designed to be interoperable with the Ethereum Virtual Machine (EVM). Therefore, TRON's implementation of smart contracts is comparable to Ethereum's. However, TRON uses a bandwidth model, whereas Ethereum uses the gas fee transaction mechanism. Thus, TRON’s transactions are more affordable than Ethereum’s transactions.
When it comes to transactions, TRON uses a system similar to Bitcoin's Unspent Transaction Output (UTXO) mechanism to complete them. Essentially, the TRON crypto project employs the Delegated Proof-of-Stake (DPoS) consensus algorithm. It has 27 super representatives who are responsible for keeping track of the transaction history and validating transactions. Every six hours a new super representative is picked. In exchange for their services, they receive TRX coins produced by DPoS. Thus, TRON tokens cannot be mined. They can only be created as block rewards for super representatives.
Besides, TRON has impressive transaction speed since it’s able to process up to 2,000 transactions per second.
What Is TRX?
TRX, also known as Tronix, is the native token of the TRON network. The tokens were initially created on the Ethereum blockchain using the ERC-20 standard. However, they were transferred to the TRON blockchain a year later.
The majority of dApps built on the TRON blockchain use TRX tokens. Users must have TRX tokens to gain access to content posted on dApps built on the TRON network. These TRX coins are then sent to the creators of that content. The creators can use the tokens to pay for blockchain services or trade them for other crypto assets.
However, TRX tokens also have other use cases:
- TRX tokens are supported as a payment method when using a credit card called Spend;
- TRON ATM machine accepts online transfers in TRX tokens;
- Whenever TRON issues new tokens, TRX can be used to purchase them;
- By freezing TRX tokens, users can generate energy and bandwidth;
- By staking TRX tokens, users can obtain voting rights;
- By holding TRX tokens, users can occasionally receive BTT airdrop rewards.
It’s advised to utilize specialized cryptocurrency wallets like TronWallet or TronLink to hold TRX tokens. The tokens can, however, also be kept in other well-known cryptocurrency wallets like Ledger, Binance Wallet, and others.
Besides, make sure to take a look at the TRON price chart above since it displays the live TRX price.
Tokenomics of TRX
The TRX token doesn’t have a max supply. However, the total supply of TRX after its initial issuance was 100 billion tokens. During its token sale in 2017, a bit more than half of the supply was distributed between investors and ICO participants while the other half was dedicated to the TRON Foundation and the founder of TRON.
In 2019, around 98% of the 100 billion ERC-20-based TRX tokens that were in circulation were burned. Though the burn had no effect on new TRON tokens that were created on the TRON network. It solely applied to the ERC-20 tokens, which were considered to be ancient and obsolete.
If you're interested in the current TRX price, once again, look at the TRON price chart above. There's a chance you've seen some volatility in the TRX price. On the other hand, it's just like it is with most other crypto assets that are traded today.