What is Tron?

TRX is a popular altcoin among investors. However, before you Trade TRX, it is vital that you understand what you are investing in. Let's find out what's TRX and how it functions.

TRON (TRX) is a blockchain-based decentralized system created by the Tron Foundation and deployed in 2017. Initially released as ERC-20 tokens on Ethereum, TRX coins were migrated to their own network a year later.

It was initially conceived to give digital content creators complete monetary compensation for their efforts. The primary objective is to support content producers by increasing the proportion of revenue going to them. How: let customers directly compensate content creators (without intermediaries like YouTube, Facebook, or Apple).

The TRON platform allows for the use of dApps, or decentralized apps, as well as smart contracts on a number of other blockchains. The cryptocurrency network employs a UTXO transaction model that is analogous to Bitcoin's (BTC). All trades are recorded in a public ledger accessible to all participants.

To that end, the platform was developed as an alternative to Ethereum that developers can use to build decentralized applications (dApps) for the Internet. Using the TRON network, anybody may build decentralized applications, distribute content, and be rewarded with digital tokens. One of TRON's most obvious benefits is that it allows users to create and distribute content without worrying about transaction costs.

The ecosystem's three tiers guarantee TRON's robust and reliable performance. Following is the breakdown of the structure:

• Storage Layer, which secures the network, blockchain state, and historical data. Its overarching goal is the classification of ecological data of any sort;
• Application Layer, where developers are important and TRX is used to construct apps and wallets;
• Core Layer, where Solidity and Java instructions are handled.

The basic idea is that the core layer computes instructions, processes them, and then delivers them to the Tron Virtual Machine, where the logic happens and where dApps are executed

A delegated Proof-of-Stake (dPoS) system, an alternative to the Proof-of-Stake and Proof-of-Work consensus algorithms, is the primary instrument for safeguarding the network and one of the unique characteristics. TRON has a leg up on the competition thanks to the network's enhanced efficiency in this regard. TRON's layered design also allows it to execute more transactions concurrently than Proof-of-Work (PoW) networks. Transactions on the TRON network are supposedly free of charge since TRON has better throughput and can perform up to 2000 operations per second.

TRON is an operating system built on the blockchain that promises to make the technology practical for everyday usage. TRON says its network has the capacity to process 2,000 TPS, much above Bitcoin's capacity of 6 TPS and Ethereum's 25 TPS.

In 2018, Tron acquired BitTorrent, a file-sharing service, to create a decentralized platform for content distribution and entertainment.

TRON's overall plan includes six distinct stages. They include decentralizing the game sector, facilitating easily distributed file sharing, incentivizing content production with monetary rewards, and enabling content creators to establish their own personal tokens.

Justin Sun, CEO of Tron, declared in April 2022 that the company will introduce an algorithmic stablecoin dubbed USDD (Decentralized USD). For each USDD created, one TRX must be burned by an automatic balancing mechanism. The USDD is managed by the Tron DAO Reserve, which is responsible for keeping its value consistent in relation to the collateral backing it. It also determines the annual percentage yield (APY) investors receive when they stake USDD.

How is Tron different?

TRON markets itself as a platform where creators may have productive engagement with their audiences. The goal is that if creators don't have to rely on centralized platforms like streaming services, app stores, or music sites, they won't have to give up as much money to intermediaries. Thus, this may also lead to cheaper content for users. TRON may be ahead of the curve in implementing blockchain technology in the entertainment business, which is becoming increasingly computerized.

They boast a global team of competent and experienced developers who have been recruited from significant corporations like Ripple Labs.

TRON also stands out from other blockchain projects because it provides a development roadmap detailing its goals for the next several years.

How many TRX tokens are there?

TRON has a supply of just over 100 billion tokens. TRX tokens were initially distributed through an initial coin offering (ICO) in 2017, and the TRON Foundation held a large portion of the total supply. Since then, the TRON Foundation has implemented several other distribution mechanisms, including airdrops and incentives for participating in the network.

Network security

TRON employs a consensus process called the delegated proof-of-stake. TRX holders can lock their cryptocurrency to earn Tron Power, which allows them to vote for super representatives who act as block creators. In exchange for confirming transactions, these block producers get TRX incentives, which are redistributed to the voters. TRON claims that adopting this strategy has increased the throughput of their blockchain.

Founders

Justin Sun, who also holds the position of CEO, founded TRON. A graduate of both Peking University and the University of Pennsylvania, he was named one of Forbes Asia's 30 Under 30 entrepreneurs. In addition, he has worked with Ripple before as the company's cheif representative for the Greater China region.

Where can you buy TRX?

TRX is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

Disclaimer: Cryptocurrencies are highly volatile and subject to market, technical, and regulatory risks. Crypto trading requires one’s own diligence, and Cryptoforce will not be responsible for any losses incurred. Any information provided here should not be regarded as Cryptoforce’s technical or financial advice