In 2017, blockchain platforms were not this popular. However, Tron Network was very popular during that time along with other blockchain platforms like NEO or EOS.
The project has raised capital up to $70 million USD through the ICO sale. So what is the Tron project? How does it work and what piece of information that we need to pay attention to? We will find out through this article
What is Tron?
Tron is one of the latest coins that promise to minimize the expense incurred by investors to start trading in it. Developed in 2017 by tech entrepreneur Justin Sun, Tron is a blockchain-based decentralized digital platform and its native coin is called Tronix (TRX).
Tron is aimed at democratizing the content distribution industry through permissionless protocols.
Tron’s fundamental goal is to gain greater mainstream attention in 2018 when the non-profit spearheading its development, the Tron Foundation, acquired peer-to-peer networking pioneer BitTorrent. This acquisition preceded the launch of a BitTorrent token on the Tron blockchain in 2019, a move that gave Tron the ability to market a new cryptocurrency to millions of existing users.
Since Justin Sun left Tron, the project itself will develop as one of the top public chains and will eventually be transformed into TRON DAO.
How does Tron work?
The basic building blocks of Tron – decentralized applications, smart contracts, tokens, delegated proof-of-stake consensus – were pioneered by other projects prior to its launch. Tron even went so far as to make components of its technology compatible with Ethereum
Like Ethereum (ETH), Tron uses an account-based model, meaning the cryptographic keys its protocol issues can control access to both TRX and TRX token balances.
The Tron blockchain then routes the exchange of this data through three layers:
- Core Layer – Computes instructions written in Java or Solidity (a language designed for Ethereum) and sends them to the Tron Virtual Machine, which executes the logic.
- Application Layer – Utilized by developers to create wallets and applications powered by the TRX cryptocurrency and compatible with the software.
- Storage Layer – Designed to segment blockchain data (the record of the blockchain’s history) and its state data (which preserves the status of smart contracts).
To reach consensus on its ledger, Tron uses a system in which a rotating cast of 27 “super representatives” are entrusted to validate transactions and maintain the system’s history.
Super representatives are chosen every six hours, and if chosen, earn the ability to collect new TRX generated by the protocol.
Blocks are added to the blockchain every 3 seconds, and those who produce a valid block are awarded 32 TRX for their efforts. A total of 336,384,000 TRX is awarded annually.
In addition to super representatives, users can operate three types of nodes on the Tron blockchain – witness nodes, full nodes and Solidity nodes. Witness nodes propose blocks and vote on protocol decisions, while full nodes broadcast transactions and blocks. Solidity nodes sync blocks from full nodes and provide APIs.
Furthermore, you can stake TRX tokens on Tron network.
To vote on super representatives, Tron users need a network resource called “Tron Power”.
Users receive 1 Tron Power for every 1 TRX they chose to “lock” in an account that is prevented from spending its associated cryptocurrency. (Upon unfreezing the cryptocurrency, users lose their Tron power and the ability to vote).
Tron Power cannot be traded like TRX or other tokens issued on top of the Tron blockchain.
Effectively, the process works the same as staking on blockchains like Tezos or Cosmos, where users earn rewards by locking up funds
What is TRX token?
Tron (TRX) is a token in much the same way that Ether (ETH) is a token. TRX crypto is the native token of Tron and is used to fuel programs running on the Tron network. Other use cases of TRX can be mentioned such as:
- Rewards: TRX can be used to pay for the most voted candidates to create a new block.
- Governance: Holders can use TRX to vote for candidates to run the TRON network.
- Payment: Users can use TRX tokens to pay for goods and services within the TRON network.
Detailed Information about TRX token
Key Metrics TRX
- TRX Token Metrics
- Ticker: TRX.
- Blockchain: TRON.
- Consensus: Delegated Proof of Stake (DPoS).
- Token Type: Coin, Mineable.
- Token Standard: TRC10, TRC20.
- Block Time: 3 seconds.
- Block Reward: 32 TRX.
- Transaction Time: 2000 TPS.
- Total Supply: 101,900,409,1844 TRX.
- Circulating Supply: 101,828,590,184 TRX.
TRX Token Allocation
TRX tokens are distributed as follows:
TRX Token Sale
- Private Sale: Started on January 8, 2017. Before TRON Foundation was established with the selling price of 1 ETH = 1,025,000 TRX.
- Public Sale: On August 30, 2017, TRON started a Public Sale with a volume of up to 40 billion TRX at $0.0015 per TRX coin. As a result, TRON raised $60 million after this round.
How to buy TRX token
You can buy TRX on these listed centralized exchanges: Gate.io, FTX, Binance.
Alternatively, you can use Coin98 Exchange to swap other tokens for TRX, check out the "Swap" button at the end of this article!
Learn more: How to use Coin98 Exchange
How to get TRX token
There are many platforms that support TRX staking such as moonstake.io with APY around 5-6% annually. You can stake your TRX tokens to earn rewards on these platforms.
How to store TRX token
You can store TRX token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search TRX Token.
Step 3: Click on the correct result, copy the wallet address and send TRX to this address.
Roadmaps and Updates
The roadmap of Tron is not published for 2022. We will update as soon as it’s available.
Team, Investors, and Partners
Justin Sun was the founder of Tron. He is a high-profile technology and cryptocurrency entrepreneur and also the current CEO of Rainberry, Inc.
However, in December 2021, Justin Sun announced that he will leave the company for TRON token holders to focus on other goals of his career and also make Tron becomes more decentralized.
The project has raised $70 million USD from its investors in 2017. Jihan Wu (CEO of Bitmain), Feng Li (Investor of Coinbase) and other famous investors in the industry are in the list below.
Is TRX a good investment?
This article has provided some of the main ideas related to the TRX token and its implications. Still, it is important to note that there are a few key points that investors should take into account before making investment decisions:
Tron is a project that has been around for a long time since 2017. The numbers on Tron's homepage are also quite impressive with more than 2.7 billion transactions and 72 million accounts made on Tron's network.
However, as a blockchain platform, the components of Tron's ecosystem are not so prominent, pieces like Sunswap (AMM) or Winlink (Oracle) are some notable projects in the ecosystem of Tron. Tron. If we compare it with recent new ecosystems like Solana or Avalanche, the development of Tron is still very modest.
However, there was a sign of growth on the Tron Network with over $4 billion USD locked within its ecosystem. If DAO becomes a trend next year, it could be a good thing for Tron Network.
In 2021, when the race of blockchain platforms is on fire, Tron Network also has the necessary pieces like Sunswap or JustLend.
However, with a blockchain that has been established for so long, the Tron ecosystem has a lot of work to do. The fact that Justin Sun leaves the project for the ecosystem to develop in the form of DAO can be a good sign for the ecosystem of Tron.
You can find many similar blockchain platforms compared to TRON by the analytic from Coin98 Analytics.
I hope you have gained all of the important information about TRX including its features and highlights throughout this topic.
If you have any questions about TRX or want to know more about TRX, please feel free to leave a comment below and join Coin98 Community for further discussions about Crypto.