TRON (TRX) is a blockchain-based decentralized platform that aims to build a free, global digital entertainment system with distributed storage technology. It allows easy and cost-effective sharing of digital content.
Its primary purpose is to enable content creators to have direct ownership of their content, removing the need for intermediaries such as Google Play and Apple Store. With its native cryptocurrency, TRX, the TRON network supports various applications, including decentralized apps (dApps) and smart contracts.
Here’s a table detailing the main features of TRON:
|Launch Date||September 2017|
|Market Capitalization||Varies with the market price|
|Use Case||Decentralized Content Sharing|
|Official Wallet||TRON Wallet|
This section deep-dives into how TRON works, exploring staking, security, and the unique features that make TRON a significant player in the blockchain space. Here you can read about a general view of TRON:
- BitTorrent Acquisition: In July 2018, TRON acquired BitTorrent, a pioneer in decentralized services with nearly 100 million monthly active users, integrating it into the TRON ecosystem.
- Global Circulating Supply of Stablecoins: Surpassing Tether on Ethereum in April 2021, TRON contains the largest global circulating supply of stablecoins.
- Decentralized Automated Organization (DAO): In December 2021, the TRON network fully decentralized, becoming a wholly community-governed DAO.
- TRONIX (TRX) Release: The TRON Foundation has introduced TRX, the primary unit of account on the TRON blockchain. Other notable tokens include BitTorrent (BTT), JUSTt (JST), USD Coin (USDC), Tether (USDT), and NFTs. TRX serves as a medium of exchange uniting the entire TRON ecosystem.
- Several Application Scenarios: With various applications driving transactions on the chain, TRX interconnects the whole TRON ecosystem, serving as the fundamental unit of accounts.
Table of Contents
How does TRON work?
To work, TRON employs a three-layer architecture comprising the Storage Layer, Core Layer, and Application Layer:
- Storage Layer: Handles the distributed storage of protocol data.
- Core Layer: Manages modules like smart contracts, account management, and consensus.
- Application Layer: Allows developers to create and deploy dApps on the network.
Here’s a comparative list of how TRON differs from other platforms:
|Speed||2000 TPS||30 TPS|
|Focus||Content Sharing||Smart Contracts|
To understand how TRON works, it is crucial to recognize that it focuses on decentralizing content sharing on its network. Built upon its unique blockchain, TRON facilitates transactions using its native cryptocurrency, TRX. The network allows users to create and distribute content without intermediaries, hence providing a unique cryptocurrency project for content sharing.
The TRON ecosystem relies on a compact, Turing-complete virtual machine known as the TRON Virtual Machine (TVM), designed to be effective, stable, practical, safe, and scalable. The working mechanism of TRON is intricate and consists of several components.
- TRON Virtual Machine (TVM): TVM-compatible tokens are implemented via smart contracts using the TRC-20 technical standard and are fully ERC-20 compliant.
- TRON’s Architecture: TRON’s architecture includes storage, core, and application layers. The core layer handles consensus, account management, and smart contracts, using a delegated proof-of-stake (DPoS) mechanism.
- Delegated Proof-of-Stake (DPoS): This blockchain consensus method allows users to use their currencies to vote for delegates who decide essential network matters. Twenty-seven super representatives (SRs) validate transactions, with a new super representative chosen every six hours and a new block added every three seconds.
- SR Rewards: SRs are rewarded with TRX coins for their services, including keeping track of transaction history. Those who add blocks receive 32 TRX coins.
- Efficient Instruction Set: TRON uses an efficient instruction set and a stack-based virtual machine. Smart contracts are written in Solidity and other advanced languages.
- Distinctive Distributed Storage Protocol: TRON has created a unique distributed storage protocol, including Block Storage and State Storage, integrating a graph database to meet various real-world data storage needs.
- DApps and Wallets: Developers can design various DApps and unique wallets on TRON, with endless possibilities for utility applications through deploying and executing smart contracts.
- Types of Nodes: The three different node types on the TRON network are the Witness Node, Full Node, and Solidity Node. Each serves specific roles, from creating and voting on proposals to broadcasting transactions and synchronizing blocks.
Why use TRX?
Use TRX as it’s the native cryptocurrency of the TRON network, used for buying and selling content, participating in the network governance, and other activities. Some of the reasons to use TRX include:
- Availability: Available on major exchanges like Binance and Kraken.
- Integration: Wallet support like the Coinbase Wallet.
- Liquidity: TRX is among the top cryptocurrencies by market capitalization.
- Payments: Users can buy services and content within the TRON network.
- Incentives: Content creators receive TRX as rewards for their contributions.
- Trading: TRX is traded on exchanges like Kraken, Binance, and Coinbase, and its price is subject to market fluctuations.
- Staking: Users can stake TRX to receive rewards and participate in network governance.
History of Tron (TRX)
The history of TRON (TRX) started in September 2017 when Justin Sun founded it, aiming to decentralize the internet and create a free content entertainment system. TRON’s mainnet was launched in June 2018, making it independent from the Ethereum network. Significant milestones include:
- September 2017: TRON’s founding.
- March 2018: Mainnet launch.
- June 2018: Acquired BitTorrent.
- 2020: Launch of DeFi products, allowing users to invest in TRON’s ecosystem
- Price Evolution: TRX price grew from $0.002 to an all-time high of $0.30.
US SEC vs Founder of Tron
As part of the unfolding history of Tron (TRX), a significant event occurred on March 22, 2023, when the U.S. Securities and Exchange Commission (SEC) announced charges against Justin Sun, the founder of Tron, and three of his wholly-owned companies: Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent).
The SEC’s allegations focus on the unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT). Specific charges include:
- Unregistered Offers and Sales: Sun and his companies are accused of selling TRX and BTT through unregistered “bounty programs” and monthly airdrops, directing participants to promote these tokens on various platforms. Such unregistered offers and sales are considered a violation of Section 5 of the Securities Act.
- Wash Trading and Market Manipulation: Sun is charged with fraudulently manipulating the secondary market for TRX through extensive wash trading, a tactic that involves simultaneous buying and selling to create the appearance of active trading. The scheme allegedly ran from April 2018 through February 2019, with between 4.5 million and 7.4 million TRX wash-traded daily.
- Illegal Celebrity Endorsements: Additionally, Sun is accused of orchestrating a scheme to pay celebrities like Lindsay Lohan, Jake Paul, Soulja Boy, and others to promote TRX and BTT without disclosing their compensation. Eight celebrities were charged for illegally touting these assets.
- Illegal Proceeds: Sun is also accused of selling TRX into the secondary market, generating proceeds of $31 million from illegal, unregistered offers, and sales of the token.
The SEC Chair, Gary Gensler, emphasized the high risks investors face when crypto asset securities are offered without proper disclosure. He further highlighted the misleading appearance created by Sun and his companies’ wash trading and hidden celebrity promotions.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, stressed the agency’s commitment to investor protection, condemning Sun’s actions as misleading and harmful to investors by violating registration and disclosure requirements.
The charges against Justin Sun and his companies mark a notable chapter in Tron’s history, reflecting regulatory scrutiny and legal complexities surrounding the cryptocurrency industry. This incident serves as a reminder of the necessity for compliance with legal standards and transparent conduct within the rapidly evolving crypto space. It underscores the balance between innovation and adherence to federal securities laws, a theme that continues to be at the forefront of the discussion around cryptocurrency and blockchain technology.
What are the benefits of TRON (TRX)?
TRON (TRX) offers various benefits, including:
- Speed: Transactions can be completed in seconds.
- Scalability: Capable of handling 2000 transactions per second (TPS).
- Content Sharing: Allows content creators to directly earn TRX.
- Developer-friendly: Offers tools for dApp development.
What are the disadvantages of TRON (TRX)?
Despite its benefits, TRON (TRX) has some drawbacks:
- Centralization Concerns: Critics argue that TRON’s network is somewhat centralized.
- Mixed Reputation: Controversies around the founder and project.
How can you buy TRON tokens?
To buy TRON tokens, one can follow these steps:
- Choose an Exchange: Platforms like Binance, Kraken offer TRX.
- Create an Account: Sign up and verify identity.
- Deposit Funds: Use cards or Bitcoin to deposit funds.
- Buy TRX: Select the amount and confirm the purchase.
How to stake TRON?
To stake TRON, follow these steps:
- Select a Wallet: Use a compatible wallet like TRX Wallet.
- Transfer TRX: Send TRX to the wallet.
- Choose a Validator: Select from the network’s validators.
- Stake: Confirm the amount and stake.
Tron and the Ethereum Blockchain
Initially, TRON was built on the Ethereum network but later migrated to its blockchain. This move allowed TRON to have better scalability and control over its network, setting it apart from Ethereum in terms of functionality.
TRON aims to be a unique cryptocurrency project, competing with Ethereum by providing higher scalability and lower fees. While Ethereum focuses on smart contracts, TRON emphasizes content sharing. They share similarities in allowing dApp development but differ in transaction speed and cost.
Here’s a comparative table between TRON and Ethereum:
|Blockchain||Independent||Ethereum’s native blockchain|
|Cost||Generally cheaper||Generally more expensive|
The Potential of Tron
TRON has the potential to reshape the digital content market by decentralizing it. With continuous development and strategic partnerships, the future seems promising for TRON in terms of both technological advancement and market positioning. Its integration with BitTorrent and other partnerships places TRON as a significant player in the decentralized internet arena. Here’s why TRON holds potential:
- Content Decentralization: TRON aims to revolutionize how content is shared and consumed.
- Development Platform: Allows developers to create dApps and smart contracts.
- Partnerships: TRON’s collaborations with renowned companies like Samsung enhance its market presence.
- Community Engagement: With active community support, TRON aims to grow further in the blockchain space.
Is TRX Tron a good investment?
To invest in TRX can be seen as promising due to its unique focus on content sharing, but it also comes with risks typical to investing in cryptocurrencies or the stock market.
Is Tron and TRX same?
Yes, TRON is the network, and TRX is the native cryptocurrency used within that network.
What is TRX wallet?
A TRX wallet is a digital tool that allows users to store, send, and receive TRX.
Is Tron and TRX same?
Yes, they are often used interchangeably, but TRON refers to the network, and TRX is the currency.
Why is TRON so cheap?
The price of TRON is influenced by various market factors, including supply and demand, overall market sentiment, and economic conditions.
How is Tron different from Bitcoin?
TRON focuses on content sharing and dApps, while Bitcoin is a decentralized digital currency without a specific focus on content.
Who owns TRON?
Justin Sun founded TRON, and it operates as a decentralized network.
What type of coin is TRON?
TRON is a cryptocurrency that is used primarily within the TRON network for content purchase and network participation.
What makes TRON unique?
TRON’s integration of the pioneering decentralized service BitTorrent, its wholly community-governed DAO structure, and its intricate architecture all contribute to its uniqueness in the blockchain sphere.