What Is Tron (TRX) ?

Tron (TRX) is a decentralized, blockchain-based operating system with smart contract functionality and proof-of-stake principles as its consensus algorithm. It was established in March 2014 by Justin Sun and is overseen by the TRON Foundation, a non-profit organization in Singapore. It has its own in-house cryptocurrency, called Tronix or TRX, which is used within the TRON ecosystem for various scenarios including payment, purchases, and voting. Tron uses the features of blockchain and peer-to-peer network technology to eliminate the middleman and allow content creators to sell their work directly to consumers.

History of Tron (TRX)

History

• Tron was founded in 2017 by Justin Sun. The Tron Foundation was established in Singapore in July 2017 and raised $70 million through an Initial Coin Offering (ICO).
• The Tron testnet, blockchain explorer, and web wallet were launched in March 2018. The Tron mainnet was launched in May 2018 with the Odyssey 2.0 release, marking a major technical milestone.
• In July 2018, the Tron Foundation announced it had acquired BitTorrent, a peer-to-peer file sharing service.
• In January 2019, Tron had a total market capitalization of about $1.6 billion. However, some questioned Tron's success and viewed it as an example of the chaotic nature of cryptocurrencies.
• In February 2019, after being acquired by the Tron Foundation, BitTorrent launched its own token sale based on the Tron network.
• In late 2021, Justin Sun resigned as CEO of the Tron Foundation, which was reorganized into a Decentralized Autonomous Organization (DAO).
• In March 2023, Sun and Tron were sued by the SEC for allegedly selling unregistered securities and engaging in market manipulation.

How Does Tron (TRX) Work?

Tron uses fast block times, DPoS consensus, and a scalable architecture to enable decentralized apps, tokens, and transactions on its robust blockchain network.Tron Virtual Machine (TVM) - Tron uses a compact virtual machine called the Tron Virtual Machine (TVM) to provide an efficient, stable, and scalable customized blockchain. Tokens are TVM-compatible using the TRC-20 technical standard. The architecture has storage, core, and application layers. The core layer handles consensus via delegated proof-of-stake (DPoS), account management, and smart contracts.Nodes and Accounts- The network has 3 node types - Witness run by SRs, Full for broadcasting, and Solidity for syncing blocks. There are also 3 account types - regular, token, and contract. TRX holders vote for super representatives (SRs) who validate transactions and add new blocks every 3 seconds in return for rewards. There are 27 SRs tracking transaction history.

Tokenomics

What Is TRX Used For ？

TRX, the native cryptocurrency of the Tron network, serves several purposes within the ecosystem:Payment: TRX is used to make transactions within the Tron ecosystem. TRX tokens are used to pay for services or interact with decentralized applications on the network..Reward: TRX can be staked to help secure the network while earning rewards. TRX staking allows holders to earn passive income.TransactionFees: TRX is used to pay very small transaction fees on the network. The fees on Tron are extremely cheap, around $0.000005 per transaction.Consensus: TRX tokens allow holders to participate in consensus and vote for Super Representatives on the network. This is done through Tron's delegated proof-of-stake consensus mechanism.

Token Distribution

• Private Sale Investors: 16 billion
• ICO investors: 40 billion
• The Tron Foundation: 34 billion
• Justin Sun: 10 billion
• Total Supply: 100 billion

Tron generates a block every three seconds. Block producers receive a reward of 32 TRX per block, with nodes receiving 16 TRX per block. That amounts to yearly inflation of 500 million TRX.

Why Is Tron (TRX) Valuable?

Decentralization and Content OwnershipTron's blockchain-based platform allows content creators to fully own the content they create. This feature, combined with the absence of transaction fees, provides a significant advantage to artists and content creators worldwide, making Tron an appealing platform for digital content sharing.

Cost-Effective TransactionsTron's transaction system is known for its cost-effectiveness, with negligible fees at 0.000005 cents per transaction. This makes Tron transactions lightning-fast, processing over 1,000 transactions per second, which is significantly faster and more cost-effective than transactions on platforms like Bitcoin and Ethereum.

Programmable Blockchain and Smart ContractsTron provides the underlying infrastructure that enables developers to create smart contracts and decentralized applications, freely publish, own, and store data and other content. This programmable blockchain capability enhances its utility and value within the cryptocurrency ecosystem.

Promotion from Justin SunTRON founder Justin Sun is dedicated to promoting TRX and regularly announces initiatives, which boosts speculation.