TRON (TRX) 101 - Everything You Need To Know
Tron is a peer-to-peer blockchain-based decentralised platform that has its own native cryptocurrency Tronix or TRX. The Tron network aims to transform the global entertainment industry by building a free global digital content entertainment system with distributed storage technology. At the current time of writing, TRX had a market cap of $1.82 billion.
This article will look into all there is to know about Tron and its cryptocurrency TRX and whether it has a future beyond 2020. After reading this article, readers will have a better idea about it and its native cryptocurrency and how they can begin using this digital currency.
What Is Tron and Why Was TRX Created?
Currently, the Tron Foundation runs as a non-profit organisation in Singapore and was founded by Justin Sun in 2017. The platform and cryptocurrency were created on the Tron protocol that could effectively decentralise the internet and support decentralized applications (dApps) and smart contracts. Tron began its journey on the Ethereum blockchain but migrated to its blockchain in 2018.
After entering the crypto market in 2017, it quickly rose to become one of the top ten cryptocurrencies globally in terms of market capitalisation and managed to do this within a period of two years.
When it launched, it raised $70 million in its initial coin offering, and at the time of the sale, TRX had an exchange rate of $0.0019. This has since increased tremendously and has helped solidify its presence in the global markets.
The Tron network allows Dapp developers to create and use complex protocols via smart contracts housed on its native blockchain. The Tron platform achieves high throughput with its transaction speeds capable of 2000 transactions a second, which surpasses Bitcoin and Ethereum in a daily-use practical sense.
Additionally, the coin has no transaction fees, so whether you are sending 100 dollars or 1000 dollars; you won’t have to pay any fees. Essentially the decentralised nature of Tron’s Blockchain technology can be viewed as a virtual machine that will help usher in the decentralised internet.
How Does Tron Work?
The Tron network is based on a delegated Proof of Stake (PoS) consensus mechanism, and with this system, 27 super representatives or SRs produce the blocks for the network. Annually, a total of 336,384,000 TRX are awarded to the 27 super representatives.
The delegated PoS consensus that Tron uses allows users to earn a passive income whenever they stake their holdings in a network wallet. Users will stake their Tron at a 1:1 ratio. What this means is that the more they stake, the more they can theoretically earn.
In Tron, ecosystem power equates to voting rights, so the more Tron power you have, the more you can vote for super representatives. Users on the platform can, after three days, convert their power into TRX coins.
The network works within a decentralised autonomous organisation (DAO). With using a DAO, they provide the community with a decentralised and democratic way for the platform to develop by taking community opinions into account.
Key 3 Selling Points of Tron (TRX)
Providing An Alternative Platform For Digital Media Sharing
Presently almost all the digital media platforms are hosted by middlemen. These platforms are there to provide creative artists with a space to share their work and ideas. Tron removes the need for intermediaries and provides a medium where creators can directly share their work with consumers. All creator data is secured via the Tron blockchain, and privacy will remain with the creators. This eliminates the problem of big companies selling the users data.
One Of The Most Transparent Crypto Platforms
In the cryptocurrency, world, communication plays a vital role. One of the benefits of Tron is that it is an incredibly transparent platform. Not only is Tron active on Twitter accounts, but so is the founder Justin Sun. Tron is always providing the community with new information and updates and even conducts live streams when there are significant updates and newsworthy events. The platform is continually transparent with its community.
Later Stages Of Tron Development Promising For ICO Arena
The later stages of Tron’s development, specifically its 2020 Great Voyage and 2021 Apollo phases, are expected to allow content creators the freedom to build their brands on the platform. This will give them the ability to issue initial coin offerings and even potentially their own tokens. These later stages of Tron are comparable to the Ethereum style blockchain-based application platforms.
Is Tron Worth the Investment?
When looking at Tron and its future, we can see that the likelihood of its continued success is great. As with most cryptocurrencies, Tron has been having a significant influence on the global markets and how traders and investors trade in crypto assets. With online transactions becoming the norm, retailers and individuals worldwide need a fast way to send and receive payments securely.
When people think of Tron, they associate the platform and digital currency with potential success in terms of profits. The platform has a solid foundation, and its ideals are incredibly relevant and progressive to the future of cryptocurrency.
As with most cryptocurrencies, the native TRX coin has had many market highs and lows over the year and is unstable in the short term. However, Tron is looking to have potential future growth in the global markets in the long term.
Interestingly, its aims for a decentralised internet are making many investors question if it could be the best investment option for them.
When deciding to invest in cryptocurrency, it is imperative to do the relevant research and find out everything you possibly can on the cryptocurrency such as Tron before deciding to invest. By doing this, you will likely find excellent market entry and exit points to help you earn profits on the markets.
No one will be able to give you a solid yes or no on if you should invest in Tron; that’s why it’s crucial to conduct your analysis to make the most informed decision possible.
Frequently Asked Questions
Yes, Tron has a few partnerships, including Baofeng and Game.com.
Cryptocurrency markets are incredibly volatile, so investors should always analyse market entry and exit points and use various market analysis tools to time the best entry for investment.
Tron hopes to solve the problem of how the internet currently functions. They want to do this by decentralising the internet and supporting (dApps) and smart contracts.
Tron’s ability to support various blockchain networks enhances its utility capabilities giving it a unique edge over other cryptocurrencies.
A super representative is a bookkeeper on the Tron network, and Tron has 27 of them.
Yes, TRX is a legitimate digital currency coin for the Tron platform.
Transactions are recorded on the systems blockchain ledger.