TRON

TRON is a blockchain technology based on a decentralized protocol, launched by the Tron Foundation in 2017. TRON aims to create a decentralized internet-like network that provides full ownership rights to digital content creators.

It allows developers to create dApps (decentralized applications) and serves as an alternative to Ethereum.

The Tron network supports dApps, smart contracts, and various blockchain systems. In December 2021, it completed full decentralization and now TRON operates as a community-governed DAO (Decentralized Autonomous Organization).

The platform uses a transaction model similar to Bitcoin (BTC), where all transactions are on a public ledger, allowing users to track operations. Its native Cryptocurrency, TRX (Tronix), drives the TRON ecosystem.

How does TRON work?

The TRON protocol runs on a delegated Proof-of-Stake consensus mechanism. Transactions on the TRON blockchain are maintained and validated by 27 Super Representatives (SR) and 100 SR Candidates who act as block producers.

These representatives are selected every 6 hours by TRX holders who have locked/staked their TRX to obtain TRON Power for voting.

Block producers are rewarded for verifying transactions when a new block is added to the TRON blockchain. A total of 32 TRX coins are then distributed among the users who voted for them.

This framework allows users to execute operations on the blockchain with almost zero transaction fees, while protecting the system from transaction spam.

How does the TRON network operate?

TRON's architecture is split into 3 main layers to ensure smooth performance and easier decentralization of media and files:

• Core layer: Handles all smart contract operations, account management, and the delegated Proof-of-Stake mechanism.

• Application layer: Allows developers to build their dApps on the blockchain.

• Storage layer: Used for storing files and other large data.

Who is the founder of TRON?

The TRON blockchain network was created in September 2017 by the Singapore-based Tron Foundation, currently directed by Justin Sun.

Educated at Peking University and the University of Pennsylvania, Justin Sun was a former chief representative of the Ripple platform in 2014 and was later listed in the 2017 Forbes 30 under 30 for creating the Asian counterpart of Snapchat, Peiwo.

TRON network expansion

In June 2018, TRON purchased the file-sharing service Bittorrent. To integrate it with the existing blockchain ecosystem, business priorities were divided into six phases, including:

• Delivering simple distributed file sharing;

• Driving content creation through financial rewards;

• Allowing content creators to launch their own personal tokens;

• Decentralizing the gaming industry.

Continuing its strategic expansion, the Tron Foundation acquired two more organizations by February 2020: the blockchain app store CoinPlay and the blockchain-based social network Steemit.

What is TRON (TRX) used for?

TRON handles smart contracts and has the capability of a complete Turing virtual machine. Similar to creating smart contract tokens on the Ethereum blockchain, users can create smart contract tokens on the TRON virtual machine.

TRON currently provides two token standards: TRC-10 and TRC-20. Additionally, the network is designed for building various decentralized apps on its blockchain, many of which require the use of its native token Tronix (TRX). TRX can be easily swapped for TRC10 tokens and used within these dApps.

The TRON ecosystem allows developers to offer content directly to their audience, eliminating centralized platforms and saving on high commissions typically paid to intermediaries.

The history of TRON: Key events and milestones

Laying the foundation

Following an ICO that raised $70 million for the Tron Foundation in 2017, the TRON project launched its testnet, chain explorer, and web wallet in March 2018.

After launching the mainnet a few months later, TRON (TRX) was ranked as one of the top 10 Cryptocurrencies on the market.

According to CoinMarketCap, TRON price reached its highest price of $0.22 in January 2018 amid a Crypto-wide bull run.

Token burn

In June 2018, TRON switched its main protocol from ERC-20 to its own network and began burning previously minted ERC-20-based TRX tokens.

By 2019, TRON reduced the supply of ERC-20 TRX tokens to less than 1% of the total initial supply.

Further development

Over the next few years, TRON merged three more companies into its ecosystem - Bittorrent, CoinPlay, and Steemit, allowing it to become a fully community-governed DAO. TRX price reached a new high of $0.16.

Partially, TRON price surged due to the global Crypto bull run in 2021, when Bitcoin surpassed $64,000 for the first time.

The current price of TRON (TRX) has been balancing within the $0.1 - $0.13 range. With a total market cap of $11.4 billion, a circulating supply of 87.04 billion TRX, and a daily trading volume of $295 million, it has secured its place among the top 15 Cryptocurrencies on the market.

Understanding the factors influencing TRX's price

Network capacity

Like any other Cryptocurrency, the price of TRX is impacted by various factors. The TRON network offers high transactional capacity, fast execution and minimal fees, unlike the Bitcoin blockchain.

This adds value to the TRX coin as a convenient way to manage and store Cryptocurrencies.

Utility

TRON's utility in decentralized applications (dApps) and smart contracts also impacts TRX's price. Increased adoption among developers and users significantly contributes to its value.

Continuous developments and enhancements to its network lead to a growing number of accounts and higher transaction volumes.

Market trends and regulatory landscape

TRX price movements depend on broader market trends and the regulatory environment surrounding Cryptocurrencies. Shifts in investor sentiment, various macroeconomic events, and changes in the regulatory framework can propel or decrease TRX's price.

Why trade TRON?

TRON is a unique blockchain platform offering numerous advantages for both developers and TRX owners.

The TRON (TRX) coin's utility for creating smart contract tokens and supporting decentralized apps makes it a great alternative to the Ethereum network. Developers can connect directly with their audience, share content, and avoid paying extra fees to intermediaries.

It is also a great tool to manage digital assets thanks to its high transaction capacity and low fees. Unlike the Bitcoin blockchain, users can quickly move their funds, crucial for traders during rapid market movements.

All these factors, along with active developments and continuous advancements, make TRON (TRX) a valuable asset to trade. It provides several earning opportunities for traders looking to diversify their portfolios and maximize their investment potential.