The TRON network uses blockchain technology and decentralized apps (DApps) to advance the concept of decentralization. The remarkable performance of the TRON network, which was designed by H.E. Justin Sun, has been maintained regularly ever since the mainnet of the network was launched in May of 2018. This blog post explores everything about TRON, how it works, its history, and how to buy TRX tokens on CoinEx.
What Is TRON?
TRON is an open-source, public blockchain that enables smart contracts. TRON's compatibility with Ethereum allows smart contracts to be directly migrated from Ethereum to TRON. TRON’s high transaction processing speed (TPS), much faster than Ethereum’s, is achieved through its unique consensus mechanism. This provides developers with a positive experience of speedier transactions.
The Ethereum network has transitioned from PoW to PoS consensus in 2022. TRON uses Delegated Proof of Stake (DPoS) as its consensus mechanism. All other currencies on the TRON blockchain are valued according to the value of TRON tokens, the basic unit of accounts on the TRON blockchain. Key tokens on TRON include NFTs, USD Coin (USDC), BitTorrent (BTT), JUST (JST), and Tether (USDT).
TRX is the means of exchange for all tokens based on TRC. The TRON ecosystem is brought together by TRX, which has several use cases that power the chain's transactions and applications.
How Does It Work?
A core layer, a storage layer, and an application layer collectively make up the three layers that makeup TRON's architecture. The operation of these three layers is as follows:
- The core layer within the blockchain is responsible for carrying out the most fundamental activities. These include transaction validation, account management, and smart contract reading. The core layer creates smart contracts using the Solidity language, which was initially developed for Ethereum.
- The storage layer was developed to manage complex data storage. It includes a blockchain storage component and a state storage component.
- Developers utilize the application layer to develop decentralized applications (dApps) and wallets tailored to their specific needs. Since TRON can support smart contracts, a wide variety of applications can be created using this technology.
TRON utilizes a delegated proof-of-stake consensus method, a variant of the proof-of-stake mechanism, to process and validate transactions. Proof of stake is one of the most well-known and energy-efficient alternatives to the proof-of-work concept initially presented by Bitcoin.
Staking & Super Representatives
Those with TRX tokens can stake in TRON's delegated proof-of-stake mechanism, holding their tokens to ensure security and earn more tokens in exchange. Due to this, users can vote on "super representatives," who are responsible for validating transactions. At regular intervals of six hours, the votes are counted, and the super representatives are selected.
To validate the transactions, super representatives are given blocks of transactions. Super representatives receive block and voting rewards for validating transactions. These rewards are distributed among the super representative's voting "partners" under the super representative's voting ratio with those partners.
History of TRON
Entrepreneur Sun Yuchen (Justin Sun), a two-time Forbes '30-Under-30' Asia award winner, founded TRON in 2017. In 2015, he also represented Ripple, the for-profit firm responsible for managing the XRP cryptocurrency.
With his business skills, Sun drew early interest from investors, such as Tang Binsen, the inventor of Clash of Kings, and Dai Wei, the CEO of OFO, a startup promoting bike sharing. These backers, in turn, increased awareness of the project's initial coin offering (ICO), which took place in September. The ICO raised millions of dollars in cryptocurrency from the general public using a token built on the Ethereum network.
A revised edition of the white paper, which provided additional details regarding Tron's technological capabilities, was published in 2018.
TRON’s Key Features
TRON blockchain offers a variety of features for developers and users. Here are a few of them:
- Developers can create a diverse range of DApps and customized wallets on TRON. Since TRON enables the deployment and execution of smart contracts, the opportunities for utility applications are unlimited.
- When users hold and stake TRX, they can be selected as super representatives. Users can earn money for their work while owning it fully, which is a win-win for the platform because it gets security from the staking.
- Bandwidth is used by the TRON Virtual Machine (TVM) instead of Ethereum's gas mechanism on the Ethereum Virtual Machine (EVM). On the other hand, TVM does not charge for transaction operations or smart contracts. Bandwidth points allow contracts to remain free to use while also preventing spamming.
- The TRON network can handle up to 2000 transactions per second, meaning transactions occur quickly.
- Thanks to its decentralized consensus, its reward distribution mechanism has been well-developed.
- Compared to Bitcoin and Ethereum, TRON is a superior option for daily transactions due to its higher throughput and improved network TPS.
TRON Virtual Machine (TVM)
TRON Virtual Machine (TVM) is a virtual machine designed to be lightweight and Turing-complete. It was developed specifically for the TRON ecosystem. To achieve its objective, it intends to deliver a blockchain system that is efficient and convenient but also stable, safe, and scalable.
TVM was first derived from EVM and can establish a smooth connection with the Solidity smart contract development ecosystem. Taking this into consideration, TVM also provides support for DPoS consensus.
Unlike EVM's gas mechanism, TVM’s transactions and smart contract operations are free, with no TRX consumption involved. In a technical sense, the total holding number of tokens does not limit the executable processing capability that may be performed on TVM.
- TVM adopts a lightweight architecture to reduce resource consumption to guarantee system performance.
- TRX transfers and smart contract execution cost bandwidth points only instead of TRX, which exempts TRON from being attacked. Bandwidth consumption is predictable and static since each computational step cost is fixed.
- TVM is also highly compatible, as it is compatible with EVM and will be compatible with more mainstream virtual machines (VMs) in the future. This means that all smart contracts on EVM are executable on TVM.
About TRX Token
TRONIX is the mainnet native token of the TRON Protocol issued by TRON DAO, or TRX. TRX is the basic unit of accounts on the TRON blockchain. TRX is also a natural medium currency for all TRC-based tokens. TRX connects the entire TRON ecosystem with abundant application scenarios that power transactions and applications on the chain.
If you want to use a game or service based on TRON, you must acquire TRX. Users require it for using applications that are hosted on the Tron network. Also, to participate in Tron's consensus system, you must have TRX. This means you must have TRX to stake coins and vote on how the protocol's operations are carried out.
Traders might also want to include TRX in their portfolios, but this will depend on the investing thesis they are pursuing. TRON may interest traders who strongly believe in the use cases that blockchains achieve because its platform enables users to develop their applications and tokens. Users may also create passive income through staking to mitigate the risk of holding or owning the asset as part of the portfolio.
Tokenomics
25.7% of the first total token supply was sold through private sales. This transaction occurred on January 8, 2017, and involved the sale of 25,700,000,000 TRX at a rate of 1,025,000 TRX = 1 ETH at a price of $0.0003 per token. This transaction resulted in the sale of 25.7% of the entire token supply.
40.0% of the initial total token supply was available for public sale. 40.0% of the entire token supply was sold at this event, which took place on August 30, 2017, for a total of 40,000,000,000 TRX. The transaction was done at a rate of 205,000 TRX = 1 ETH, with each token being sold for $0.0015.
The TRON Foundation and its team own 34.3% of the total token supply.
Conclusion
In conclusion, TRON is a fantastic innovation in blockchain technology. It provides an environment that is not centralized and has been designed to be fast and effective. The three-tier architecture allows for efficient and rapid processing of transactions. TRON is well-designed to accommodate a vast number of DApps. Its Delegated Proof of Stake (DPoS) ensures the network is secure and can grow.
With the acquisition of BitTorrent, TRON expanded its user base. This is because TRON can expand its decentralized network even more. The platform invites developers to develop new, exciting projects. Thus, TRON will remain at the forefront of the blockchain industry.
Trading TRON on CoinEx
CoinEx is a global cryptocurrency exchange trusted by 5+ million users worldwide and has 100% reserve. Users can now trade quickly and seamlessly with its 900+ supported tokens, including the meme coins.
To trade any airdrop token on CoinEx, follow the steps below.
- Sign up for an account: Create a CoinEx account first.
- Login to your account: Now fund it using deposit methods or cryptocurrencies. With funds in your account, you can quickly complete deals.
- Go to the Trading Page for the Token: Once your account is funded, proceed to the specialized token's trading page on CoinEx. Use the search box to find your airdrop token. If it’s not listed, try a different exchange,
- Choose a Trading Pair: Select the desired trading pair that matches another cryptocurrency. For instance, you may choose to trade TRX/USDT.
- Specify the Purchase Amount: Determine the quantity of the tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
- Execute the Trade: Execute the trade with the specified amount. Confirm the details, and if you are satisfied, submit the order.
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