Cryptocurrency investors, developers, and blockchain enthusiasts have taken a liking to Tron (TRX), a digital currency that seeks to decentralize content sharing on social media platforms and other online platforms by rewarding users with its native cryptocurrency.
Using peer-to-peer technology and distributed data storage, Tron aims to disrupt Internet monopolies like Facebook and YouTube, which control user data and content for profit.
Let us now take a closer look at what Tron is and how it works.
TRON is a blockchain-based protocol that aims to build a free, global digital content entertainment system with distributed storage technology and allows easy and cost-effective sharing of digital content.
It gives users the freedom to store, publish and own data. In its decentralized autonomous form, it decides the distribution, subscription, and push of content and enables content creators by releasing, circulating, and dealing with digital assets.
- It was developed by the Tron Foundation — a Singapore-based nonprofit organization that oversees the ongoing development of the Tron ecosystem.
- Tron’s internal cryptocurrency is TRX which can be obtained for free by participating in social account mining.
- The Tron protocol, which powers the TRON ecosystem, offers scalable, high-availability, and high-throughput support.
- The Tron network also includes smart contracts that can be used to execute transactions between users without the need for third parties.
- Tronix (TRX) can be used to pay for network resources on the Tron network; you need to use it to initialize a new account or upload any media files.
- The total amount of TRX is fixed at 100 billion, and no more will ever be created.
Tron was developed by the Tron Foundation, which was founded in September 2017 by Chinese entrepreneur Justin Sun, who also serves as CEO of BitTorrent, Inc. While Tron and BitTorrent are separate entities, they share ownership and some personnel.
Tron was launched in 2017 with an initial coin offering (ICO).
The founder and CEO Justin Sun announced his intention to create a new blockchain in September 2017 and launch it the following year. The Tron MainNet launched in May 2018.
The Tron mission statement is to “heal the Internet” by utilizing blockchain technology and distributed storage to create a decentralized content entertainment ecosystem. In this ecosystem, creators would have complete control over their content and be able to freely distribute it to users without being subjected to hefty fees from large corporations.
Users are free to visit any site where they have interests under the TRON network environment. This information will be stored on its server or client-side permanently through IPFS (Interplanetary File System) technology. These sites are also allowed to customize their virtual cards (TronCard) to meet the specific needs of different information publishers and consumers.
Unlike Bitcoin and Ethereum, which are powered by proof-of-work algorithms that are used to mine coins and create new blocks, Tron is built on the” Delegated Proof of Stake (DPoS) protocol.”
In this system, each user who holds TRX coins can vote for their preferred super representative candidate, who then acts as a representative on their behalf to validate transactions and generate blocks.
The validation process requires super representatives to verify that transactions are genuine and approved by users before adding them to the blockchain. This process is executed in real-time and does not require any transaction fees from users.
Moreover, because of its DPoS consensus model, Tron can process transactions with exceptionally high speed and scalability. It also allows for high transaction throughputs, making it suitable for use by decentralized applications (dApps).
The Tron protocol is essentially an improvement on the Ethereum blockchain; it uses Ethereum’s Solidity smart contract language and provides a similar level of security. It adopts a three-layer architecture that includes storage, core, and application layers.
The Tron blockchain offers developers several ways to build applications and conduct transactions on its network. It also supports the creation and issuance of native tokens through the Tron Virtual Machine (TVM).
Tron uses its cryptocurrency called Tronix (TRX), which can be used by content consumers to pay content creators for the digital content they access. Content creators also receive TRX as rewards for their contributions to the network.
To secure your Tron, you should use a hardware wallet such as Trezor or Ledger Nano S. A hardware wallet is a small device plugged into your phone or computer that generates and stores your private keys securely offline.
Even if you’re using a wallet for its features and convenience, a hardware wallet is still recommended for storing large amounts of Tron in a safe place.
We do not offer investment advice. However, the answer to whether or not Tron is a good investment depends on how you see the future of online media.
Many experts believe that the future of online media lies in decentralization, and TRX is a great way to get into the movement early on. For investors interested in the long-term potential of TRX, investing now could pay big dividends years from now.
Moreover, with a strong team working on its development and the TRX tokens being used across the dApps on the network, everything suggests that TRX could be a good investment for your portfolio and could see widespread adoption in the future.
Find out more about TRON at https://tron.network