What is Tron (TRX)? cryptocurrency | Complete Beginners Guide
Entertainment is an essential part of our lives. Likewise, created content has to be distributed to reach its intended audience. While there are traditional distribution methods, the media industry is in control of few large companies. Apple, Facebook, and YouTube strictly censor what you view or publish on their platforms. They also receive most of the revenue the media generates. They are thereby leaving creators with a small portion of whatever money their content makes. However, Tron has developed a unique solution to this challenge.
Tron has made a decentralized entertainment platform that allows users to create, access easily, and share digital content. Tron uses blockchain and peer to peer (P2P) technology to meet its goal. Meanwhile, this review will give users vital information about the Tron project. It will also discuss the Tron coin (TRX).
What is Tron Coin?
Tron is a project dedicated to developing entirely decentralized internet infrastructure. Therefore, this project operates without a central body or middle man. As a result, It enables direct interaction between end-users and resources. These exciting concepts give Tron the potential to:
- Decentralize the web
- Create a digital marketplace for content developers and consumers
- Create a mobile app marketplace
- Create a cryptocurrency with a vast use-case and without territorial restrictions
Tron protocol offers public blockchain support of high output, high scalability, and high availability for all Decentralized Applications (DApps) in the Tron ecosystem. TRX stands for Tronix, which is the official cryptocurrency of the Tron coin. TRX uses Tron network TRC-10. Tron uses this coin to pay users who create content on their platform. Similarly, you can trade Trx on many crypto exchanges. Meanwhile, Tronix (TRX) can handle about 2,000 transactions and transfers every second.
In contrast, Bitcoin (BTC) can only process 3-6 transactions per second. Likewise, Ethereum can handle just 25 transfers per second. Therefore, giving Tron a higher throughput in comparison to its predecessors.
How does Tron process transactions? Just like other crypto assets, TRX transactions occur on a public ledger. The history of all transactions on the Tron network is traceable to the public ledger’s first transaction. Tron’s ledger is like Bitcoin’s transaction model. However, Tron’s transactions have more security. Tron’s transaction model is known as UTXO. When you send TRX to a user’s address in a UTXO model, the money sends along with some rules. The set of rules will then unlock the amount of TRX sent. Thus, the end product is an output known as UTXO.
Meanwhile, the UTXO model is majorly meant for developers to understand fully. Users should focus on the overall use-case behind the Tron project. Tron gives you overall control over the content you create and distribute.
Brief History of Tron
Tron foundation was established in Singapore in July 2017 by Justin Sun. Tron Foundation is a non-profit making organization that operates the Tron network. The foundation supports Tron’s development team by ensuring they keep to the principles of transparency and fairness while developing Tron. Tron foundation holds approval from the Accounting and Corporate Regulatory Authority. This regulatory commission works in due accordance with the Company Law of Singapore.
Background developers of Tron are cryptocurrency enthusiasts who work for big firms like Baidu, Alibaba, and Tencent. Tron Foundation raised $70 million through an initial coin offering (ICO) in 2017. Tron was first listed on Coinmarketcap on September 13, 2017, at $0.002. The all-time high of the crypto coin is $0.30, which was on January 5, 2018. Currently, its price is in the range of @0.025 and $0.03. Justin Sun is the founder of Peiwo, a china-based live streaming app with over 10 million active subscribers. Tron has been integrated into Peiwo. Therefore, this has built high recognition for the cryptocurrency around China.
Sun was also a former Chief Representative of Ripple in China. Therefore, Sun is not a newbie in the FinTech or cryptocurrency industry. He is a close accomplice to Jack Ma, the billionaire behind Alibaba. Justin Sun is a graduate of Jack Ma’s Hupan University. Surprisingly, few months after graduating, Sun made it into Forbes “China 30 under 30” and “Asia 30 under 30” lists.
Key personnel along with Justin Sun on the Tron project are:
- CTO of Tron – Lucien Chen
- Technical Director – Keelson Yang
- Developer – Xie Xiaodong.
In December 2017, Tron launched its open-source protocol. The Tron protocol is very scalable. It is capable of handling a growing amount of work. Similarly, it can accommodate an enlarged network. Tron launched its Testnet, Blockchain explorer, and web wallet in March 2018.
Tron bought BitTorrent in July 2018, thereby combining BitTorrent’s 100 million users with their network. Also, Tron was able to launch new DApps on the Tron network.
Advantages and Disadvantages of Tron
In a bid to provide a fully transparent and stress-free transaction environment, the Tron technology eliminates intermediaries in its transactions, and users can make better use of resources. Therefore, Tron’s storage protocol is distributed. The introduction of a graph database notion into the design was an excellent idea. As a result, it meets the requirements to diversify data storage.
- High throughput – Tron network supports about 2000 transfers every second. As a result, the Tron coin (TRX) has a breakneck transaction speed. Therefore, when Tron finally achieves its goal to decentralize the content creation industry, there will be enough space to complete transactions. Unlike its predecessors like Ethereum and the ERC-20 network, Tron has a competitive edge.
- Creation ofDecentralized Apps (dApps) – Tron allows developers to create a diverse range of dApps, making its applications limitless. Developers who create dApps that offer content will earn crypto assets in return. Payments will be either in TRX tokens or in a token you have created on the TRX network. Therefore, you receive your compensations in full, and no middle-men will slice your money.
- Tron eliminates transaction fees – there are no charges or fees when making a TRX transaction. You only have to pay the internal network fees, which ensure your transaction is safely added to the network. Meanwhile, the network fee is not the same as what you pay for other cryptocurrencies. Tron uses Delegated Proof of Stake (DPoS) protocol. Therefore, users pay using Bandwidth Energy.
Bandwidth refers to the volume of network required to execute and save transactions. Meanwhile, the price is fixed and may not be paid while making simple transactions. Similarly, there is some level of free bandwidth on the Tron network. Approximately, you can make 15 financial transactions for free. As for Energy, only dApps and smart contracts need a little energy. Just like gas fees in Ethereum. Often, zero Energy is used for transfers. However, to receive free Bandwidth and Energy, you may freeze some of your TRX coins. Freezing also makes TRX scarce, and scarcity breeds a bullish market.
Tron is a long-term project with six planned stages; Exodus, Odyssey, Great Voyage, Apollo, Star Trek, and Eternity. These stages will last till 2027.
The Exodus stage
Exodus is the first phase of Tron’s development. Therefore, its primary focus was on data liberation. Exodus is a platform for free peer-to-peer content distribution and storage. Similarly, it allows consumers to store and access information and release it to Tron users. This phase was the design for the top-level of Tron’s system and protocols of the public chain. The Exodus stage began in August 2017 and came to an end in December 2018.
The second stage is a significant phase as well. Odyssey ensures the large-scale development of Tron’s public chain. Essential versions of Odyssey include:
Odyssey v1.0 – this is the test net version of the Tron public chain.
Odyssey v2.0 – the main net version of Tron public chain. This version features an improved network, a new bandwidth model, and account creation. Tron built Odyssey v2.0 to:
- Optimize handshake logic
- Enhance sending ping messages
- Utilize message entities and net log
- Solve disconnection problem
- Send message thread and handle message thread
- Resolve repeated transaction in the network module
The following are the features and requirements of the new bandwidth model:
- For token transfers, Tron will charge bandwidth points from the issuer if points are enough.
- If there is enough, the initiator will as well pay bandwidth points.
- The initiator will be charged TRX. After that, the TRX will be burnt.
To create a wallet using a private key, you will need to invoke one of these APIs:
- Invoke account creation API directly
- Send TRX to the address
- Send tokens to the address
Odyssey v3.0 – Tron built the Tron Virtual Machine (TVM) in this version. TVM is a lightweight virtual machine that is Turing complete. It was built exclusively for the Tron’s ecosystem. Its objective is to deliver a custom-built blockchain ecosystem that is efficient, secure, and scalable. TVM uses the concept of Energy. Therefore, transactions and smart contracts on TVM are free of TRX consumption. In contrast, Ethereum’s EVM employs a Gas mechanism, which makes operations on the Ethereum blockchain expensive. Performance of TVM includes:
Lightweight Architecture: TVM adopts a lightweight architecture to reduce resource consumption. Therefore, there is a guarantee of better system performance.
Robust – TRX transactions and smart contract execution cost only bandwidth points. Transfers do not cost TRX. Hence there is no attack on TRON. Also, the computational step cost is fixed. Therefore, bandwidth consumption is predictable and static.
Highly Compatible – TVM is currently compatible with Ethereum Virtual Machine (EVM). Thus, all smart contracts on EVM are executable on TVM. Soon, TVM will be compatible with more mainstream virtual machines.
Low Fee: As a result of TVM’s bandwidth setup, the cost of development is reduced. Therefore, developers can focus more on the reasonable development of their smart contracts. Likewise, TVM offers an all-in-one interface for contract deployment. In like manner, Tron offers developers convenience in triggering their contract codes.
Odyssey v3.2 – this version is an in-memory database for full access to Tron public data.
Odyssey v3.5 – this version supports multiple signature and account management.
Odyssey v3.5.1 – this phase saw the introduction of Rocks DB as a new primary data engine.
Odyssey v3.6.5 – this serves as a decentralized incentive mechanism. This version centers on content empowerment to provide fair returns for content creators. Meanwhile, this version aims to cut out middlemen such as Apple Store so content creators can receive funds from their customers directly.
The Odyssey stage lasted for 18 months (January 2019 to June 2020).
Great Voyage v4.0 – this is a consensus mechanism for Tron Proof of Stake (TPoS).
Tron development is still at the Great Voyage stage. Great Voyage will last for 12 months (July 2020 to July 2021).
The three last stages aim to provide decentralized ICOs, forecasting, and gaming platforms. Including online casinos that will use blockchain technology. All platforms will be launched using Tron 20 standard. Apollo will last from August 2021 till March 2023. Likewise, Star Trek will last between April 2023 and September 2025. Finally, Eternity will mark the end of the 10-year roadmap of the Tron ecosystem. This phase will last from October 2025 and end in September 2027.
Perspectives and Takeaways
Tron has provided a unique alternative for content creators and consumers with its decentralized entertainment platform. This use of blockchain technology is widely accepted among content creators. Similarly, Tron holds partnerships with lots of top brands in the crypto space. For example, Tron is in alliance with oBike, a multinational bike-sharing company based in Singapore. oBike has over 10 million users across Southeast Asia. oBike launched its token oCoin on Tron’s network. Customers of oBike accumulate oCoins by patronizing the company. They can then use their tokens to purchase rides from oBike.
Likewise, Tron is in partnership with Global Social Chain, a social network with over 100 million people. They are as well in collaboration with game.com. Moreover, TRX is in partnership with Bitmain. Bitmain is a top designer and leading producer of ASIC chips that are used to mine Bitcoin. Furthermore, Tron is in partnership with Zag – S&W. Zag is a leading international law firm with a Legacy 500. This company focuses on commercial law. Thus, this is a promising addition to Tron’s connection with some of the world’s leading companies.
These partnerships show a growing acceptance of Tron. Also, it assures users of their safety. Furthermore, Tron is expanding its activities. For example, on October 2, 2020, Coindesk reported that Tron had plans to acquire blockchain-based e-sport service Dlive.tv. Dlive will be moved into an entity called BitTorrent X.
Log in to Tron’s website to learn more about Tron’s features.
Click here to follow Tron Foundation on Twitter.
You can as well follow Tron Foundation on Instagram.
Check them out on Reddit here.
Likewise, you can as well join the Tron network on Telegram.
How to Store Tron
There are several ways to store Tronix. Therefore, you need to be careful with your wallet choice. Atomic wallet delivers a secure and fully decentralized Tron wallet. Atomic Wallet supports over 300 crypto assets as well as an in-built crypto exchange. Therefore, it offers users the ability to swap cryptocurrencies for other tokens securely and anonymously directly. Likewise, you can stake TRX on Atomic wallet to earn other tokens on the Tron network.
Similarly, transactions in this wallet are free of operational charges. All you have to pay is the network fee, which is very low for TRX. Moreover, there is 24 hours customer care service that attends to your concerns and problems.
You can buy TRX with a bank card or swap any crypto coin for TRX on Atomic Wallet. Your private key and seed phrase is fully encrypted. Please write it down on paper and store it somewhere very safe. Therefore, install the Atomic Wallet now and start holding your Tron coin (TRX) today.
Tron offers a unique solution to content creators and consumers. Users will enjoy creating, sharing, and accessing content on this entertainment platform. Their services are decentralized, thereby removing intermediaries and creating a peer to peer business platform for users.
Tron is generally accepted among users in the crypto space, with lots of partnerships solidifying their reputation. Likewise, they are working on projects that will increase their influence and help them better achieve their objectives.