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Ever since TRON (TRX) entered the crypto market in 2017, it’s had one of the most vocal followings in the sector. This coin leveraged this community support and its unique technical aspects to become one of the top 10 cryptocurrencies in the world in terms of market cap. More impressively is the fact that it only took TRON two years to accomplish this task.
What is TRON (TRX)?
TRON is a decentralized virtual machine that was built to help usher in the decentralized internet. Similarly to Ethereum, TRON enables Dapp developers to create and utilize complex protocols via smart contracts that live on its native blockchain. Today the platform is best known for its transaction speeds and its lively CEO.
Specifically, the platform is capable of 2000 transactions per second. This performance puts TRX on par with major payment processors such as PayPal. Best of all, TRON has zero transaction fees. You can send a million dollars in TRX to anywhere in the world in seconds and never have to pay a fee.
To grasp the monumental task TRON’s developers seek to take on, it’s crucial to understand a little about the decentralized internet. The decentralized internet differs from the internet you are used to in some key ways. Primarily, there are no hosting companies. Instead, the entire internet is run by personal users.
Until recently, the concept of a decentralized web seemed impossible. The computing power of the world was not up to par yet. However, the transparent nature of blockchain networks makes them ideal for just such a task. This is exactly the role TRON seeks to obtain.
History of TRON (TRX)
The history of TRON begins in early 2017. At that time, the firm’s CEO Justin Sun officially launched the Singapore based non-profit organization known today as the TRON Foundation. The mission of this organization was to build the infrastructure for a decentralized internet and provide a democratic system to manage the new network.
Notably, Sun isn’t a stranger to the FinTech sector. For one, he is a protégé of Alibaba founder, Jack Ma. Amazingly, he graduated from Ma’s Hupan University and within months made his way onto Forbes “China 30 under 30” and “Asia 30 under 30” lists. Keenly, prior to the introduction of TRON, Sun had already made a name for himself in the blockchain sector.
For example, Sun was Ripple’s chief representative in the greater China area. This position put him in contact with the network of people he would one day need to make the TRON concept a reality. He also founded a hugely popular live-streaming app called Peiwo. Currently, the app has over 10 million users throughout China.
Even more impressive is the fact that Sun integrated TRON into Peiwo only months after the acquisition. This integration helped boost TRON’s position in the region. Additionally, the strategy expanded TRON’s active user base significantly.
TRON (TRX) ICO Raise
TRON’s launch was a big deal. The 2017 TRON Foundation ICO raised $70 million to further development of the TRON ecosystem. During the event, investors received TRX tokens in exchange for their BTC or ETH. At the time of the sale, TRX tokens had a market value of just $0.0019.
TRX tokens are the utility tokens issued by the TRON Foundation as a medium currency for all TRC-based tokens. These tokens reside n the MainNet and they facilitate easy transactions across the blockchain.
By 2018, Sun had pushed TRON into the top ten cryptocurrencies in terms of market capitalization. This success gave the platform’s developers the resources, experience, and motivation to launch their own blockchain. This decision allowed TRON to migrate the platform from ERC-20 tokens that reside on the Ethereum network, over to TRX tokens that utilize TRON’s native protocol.
Delegated Proof-of-Stake (DPoS)
The TRON network relies on a Delegated-Proof-of-Stake (DPoS) consensus mechanism to secure the blockchain. A DPoS is similar to a proof-of-stake consensus mechanism in that it allows users to earn passive income whenever they stake their holdings in a network wallet.
Staking TRON (TRX)
Staking serves a couple of crucial purposes. For one, it allows users to earn passive income. Mainly, it keeps the network safe. In the TRX ecosystem, users stake their TRX at a 1:1 ratio. The more they stake, the more TRON Power they earn. TRON Power is vital within the TRON network. For one, it’s what the community uses to vote for Super Representatives. Notably, after three days, a user can choose to convert their TRON Power into TRX.
DPoS vs PoS
Unlike a PoS system, in a DPoS system, only elected nodes can approve blocks of transactions. In the TRON ecosystem, the community elects 27 Super Representatives every six hours for this vital task. These representatives are chosen by the community of users staking their TRX. Notably, the entire process is run by a DAO.
Decentralized Autonomous Organization (DAO)
DAOs continue to be a popular form of decentralized management in the sector. Think of a DAO as a series of smart contracts that nodes can vote on to determine the next course of action for the organization. DAOs provide the community with a decentralized and democratic way to develop platforms based on community guidelines.
In July 2018, the TRON Foundation again made headlines. This time the news was that TRON purchased the largest peer-to-peer file-sharing network in the world – Bittorrent. File sharing platforms like Bittorrent were the first forms of decentralized networks in existence. In essence, these platforms laid the foundation for blockchain technology years in advance.
The TRON Foundation is a non-profit organization that focuses on expanding the use case scenarios for TRX and the TRON protocol. Today, TRX operates on one of the largest decentralized networks in the world. Additionally, the entire TRON protocol is open-source. Open-source platforms are more secure because they allow the community to test the codes wear-with-all.
Where to Buy TRON (TRX)
While you can’t just go to your local gas station and grab some TRX just yet, it’s still easy to attain this futuristic token. Thankfully, TRON is available on some of the largest exchanges in the world. One of the easiest ways to get TRX tokens is through the Binance exchange.
Binance is the largest cryptocurrency exchange in the world in terms of market cap. The platform currently offers a variety of TRX trading pairs including BTC/TRX. As with most altcoins, you will need to first convert your fiat currency over to BTC or ETH. Once you complete this task, it only takes a click of the mouse to convert BTC to TRX.
You can also buy it with your credit card from one of these exchanges.
How to Store Tron
There are two main ways to store your TRX Tokens. Each has its own benefits and risks to consider. If you are new to the crypto space and only plan to purchase a small amount of TRX, a mobile wallet will suit you fine. The TRON wallet Dapp is available for free on iOS and Android devices.
The upside of a mobile wallet is that it’s easy to use and provides you with instant access to your cryptocurrency. The downside is that it’s more prone to hacks and scamsters. Remember, your mobile wallet is always online, therefore, it’s always at risk.
If you seek to make a major investment in TRX or if you are planning on HODLing this crypto for long periods of time, a hardware wallet is the best option. Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger Nano S or the more advanced Ledger Nano X both support Tron (TRX).
Like any major cryptocurrency project, TRON has had its fair share of controversies. One major area of concern that has plagued the project is the fact that much of its protocols appear to come from other platforms.
For example, TRON utilizes multiple protocols from IPFS and Filecoin (Bitswap, PoRep, PoSt,) but it fails to list them as references in its whitepaper. This lack of reference led some in the community to speak out against the project.
In response to the allegations of forgery, Sun stated that the confusion arose from bad translations. He explained that the whitepaper translators left out important details that were found in the original Chinese version of the document. Despite his claim, others in the community pointed to issues in the Chinese version as well.
TRON continues to find its way into the crypto headlines on a regular basis. From its CEO eating lunch with Warren Buffet to the launch of a new DeFi platform, this project continues to capture the imagination and hearts of crypto users around the world. For now, it’s exciting to see what this creative team of developers has up their sleeve next.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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