One of the more ambitious projects in the cryptocurrency world is TRON, a decentralized blockchain platform that aims to create a free, universal digital content entertainment system based on the concept of distributed storage, enabling quick and inexpensive sharing of digital information.
The core resource of the Tron network is the Tronix token or TRX. Any other two Tron tokens can be exchanged through it as a middleman. More importantly, it serves as a means of exchange and rewards miners for completing transactions.
TRON is a versatile smart contract platform that makes it possible to build and use decentralized applications (dApps). It has a delegated Proof-of-Stake (DPoS) consensus mechanism, which boosts performance while preserving true decentralization and censorship resistance.
TRON is arguably best known for its ability to conduct transactions at a lower cost than other layer-1 solutions like Ethereum, but it has not yet gained enough developer adoption to be taken seriously as a competitor.
The primary goal of the development of the Tron token is to build an entertainment network that is comparable to the AppStore or GooglePlay, but where developers can build their own entertainment applications and provide them directly to users without the use of middlemen.
Ever pondered the origins, timeline, and features of TRON? Continue reading!
History of TRON
The Chinese company TRON Foundation, which is registered in Singapore, founded the decentralized open-source TRON blockchain platform. TRONIX is the platform’s primary cryptocurrency (TRX). The platform was first introduced by Chinese businessman Justin Sun in the summer of 2017.
The business conducted one of the largest ICOs in 2017–2018, raising $70 million. The total issue was split into two sales: 40% to investors and the remaining 35% going to the TRON reserve fund for pre-sale to other investors.
Developers with extensive experience from China, the USA, and Japan make up the project team. Following the ICO in 2018, TRX switched to its blockchain from the ERC 20 standard, where it had previously represented the token.
The initial version of the currency followed the ERC-20 specification, but in 2018 the project switched to its own Odyssey 2.0 blockchain network.
TRON was founded on Ethereum, followed its course of development, and inherited its two key distinguishing characteristics: the presence of smart contracts and the use of crowdsourcing to raise money for the creation of its tokens. The main form of payment for platform content and for offsetting mining blocks is TRX.
Below are some of the distinctive features of TRON.
1. Virtual Machine
Because Ethereum supports Virtual machines (TVM), smart contracts, and TRON token patterns, project migration to this blockchain is made easier.
2. No Commission Fees
Due to the presence of two unique parameters, Bandwidth (bandwidth) and Energy, users can conduct transactions on the TRON network without paying commission fees (energy).
Network rates are still very low when compared to Ethereum networks even when bandwidth is exceeded.
3. Simplified Token Creation
Having the ability to create tokens (TRC10) more quickly and cheaply is another big feature of TRON.
4. Tokens Can Be Used As Commission
When sending tokens to the TRON network, unlike the Ethereum network, the tokens themselves can be used to pay the network as a commission rather than the primary TRX currency.
Popularity of TRON
With the introduction of TRX in September 2017, its price was for the first time 1 cent, with a capitalization of $70 million. The platform quickly became well-liked by people who regularly engage in social media, play at online casinos, and engage in other forms of entertainment because of a strong team and a well-defined development strategy.
The capitalization increased to $160 million and the price to 6 cents in December 2017. In January 2018, when the TRX rate reached its peak of $0.278030, the project’s capitalization surpassed $2 billion. The TRX token was ranked 15th among cryptocurrencies as of the end of February 2018 with a value of $2,819,972,849.
More than 900 million transactions had been made on the primary token network by the end of February 2020, demonstrating the currency’s popularity and rapid development.
As of now, websites like Coingate allow you to receive and make payments in TRON for anything. Plus, they also give you the choice to either keep the received payment in TRON, convert it to any other currency, or even convert it to fiat as well. And it’s just a few clicks away!
Power and Bandwidth
The main advancement of the TRON token is the elimination of commission fees for network users. The necessary bandwidth for completing TRX transactions (bandwidth). This sum will be diminished for each transaction. The account automatically receives 5000 units of bandwidth per day.
A transaction’s transfer rate units are calculated by multiplying the number of bytes by the transfer rate units’ speed. On the TRON network, a transaction typically uses 250 units of bandwidth to be completed.
Energy is a unique resource used on the TRON network to process smart contracts. When making transactions, it’s crucial to check that the wallet has enough of both bandwidth and energy because smart contracts use both.
Increase wallet yield and energy by freezing the money for three days, during which time it cannot be used. These values will rise after this time frame.
The size of the Blockchain technology market is around 1.2 billion USD and out of this massive market, for the creation of tokens, Tron is the new cryptocurrency in the crypto space that users favor the most. Multiple token standards have been released by Tron to improve cryptocurrency business operations.
However, the full potential of blockchain technology is yet to be attained or realized. Making alliances and expanding the TRON brand in the crypto and mainstream IT sectors will be the focus of the upcoming months and years.
Additionally, when it comes to crypto payments, its zero-transaction fee mechanism makes it an intriguing option for both businesses and consumers. There is no denying the potential of this coin. And it appears to be bright!