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What is Tron TRX
What does TRX crypto do? Is TRX a good investment? What are the benefits of TRX?
What is Tron TRX
The invention of the blockchain has significantly changed the development of the financial sector. One of the most famous projects is Ethereum. It allows you to create smart contracts for transactions between 2 or more parties. However, this network was found to have deficiencies in scalability. As a result, Ethereum has competitors, one of which was the TRON project. This blockchain, which has its own coin, serves the entertainment content segment. A detailed overview of the Tron (TRX) cryptocurrency will allow the visitor to view the project from all sides, understand its strengths and the feasibility of buying an asset
History of the Tron (TRX) Cryptocurrency
Project developer Justin Sun launched the Tron network in 2017. His idea is to allow creators and providers of entertainment content to interact directly with customers within the blockchain ecosystem. Not only did Sun want to do without a third party (such as Google Play or the Apple Store), but he also wanted to allow files to be distributed.
He brought in the best programmers, engineers and advertisers to develop the platform and run the ICO. In 2017, the Tron Foundation raised $70 million in an initial public offering shortly before China banned cryptocurrencies. It was one of the largest ICOs at the time and further increased the popularity of digital coins.
An interesting fact: the team managed to raise such an amount without any special developments (there was only a landing page), as well as with non-original project documentation. Sections of the White Paper were partially copied from other companies. The developer referred to the incorrect work of translators. Justin Sun drew public attention to the fact that the documentation does not contain the main theses. However, all versions of the White Paper, except for the Chinese one, were deleted by the team members.
In 2018, the architecture of the network moved from working on the Ethereum blockchain to an independent platform. In the summer of 2018, the company announced the purchase of the BitTorrent project, the most famous file storage system.
Cryptocurrency Features
The difference between the Justin Sun project and other startups is the concentration of the idea on a narrow range of tasks. At the same time, a wide audience was preserved. TRX cryptocurrency adapts the digital ecosystem for entertainment information.
At first, the project worked on the Ethereum blockchain. This choice is driven by a quick decision to launch a peer-to-peer network. Later, the developers switched to their own blockchain with the Proof-of-Stake algorithm and the Validation consensus. Tron was one of the first platforms to implement this.
What is Tron cryptocurrency in simple words
Tron is a blockchain-based decentralized platform that provides services related to entertainment and finance. The purpose of the network is to give content creators full control over their data and the ability to earn a profit for their efforts.
Developers are looking to change the approach to the traditional media industry and decentralize the industry. For example, Facebook or YouTube controls the content that will be published and viewed by users. Most of the revenue goes to these companies, with authors and creators making a small profit. Justin Sun's project should change that.
Characteristics
Technical parameters of TRX cryptocurrency:
- Wide global blockchain-based interface.
- High scalability. Applications can be implemented in a variety of ways due to the project's extensibility and efficient consensus mechanism. The network works with an impressive number of devices.
- High throughput. Increased transactions per second (TPS) has overtaken BTC and Ethereum in terms of everyday use.
- High availability. The distribution method is provided by a more stable underlying network, user resource, and a higher fragmentation acceptance standard.
Principle of operation
The main goal of the project is to counter the high transaction fees charged by the Ethereum blockchain. This was the only uncontrollable disadvantage of Ethereum. The developers of Tron used this opportunity to increase the technological level of the platform and make themselves known in the digital space.
The main core of the blockchain is based on delegated proof of stake (Delegated Proof-of-Stake, DPoS). It is an advanced version of the Proof-of-Stake (PoS) consensus mechanism.
In the TRON network system, users initiate transactions without worrying about gas fees. Transaction fees are based on the concept of bandwidth and energy. This mechanism allows 15 transfers free of charge. Subsequent transfers are charged based on the estimated throughput of each individual transaction.
Transaction speed
According to the White Paper of the blockchain, the platform conducts 2,000 transactions per second. For comparison: the speed of the Ethereum network is 25 TPS, Bitcoin is only 7 TPS. Less transaction verification time contributes to the overall positive impression of the cryptocurrency.
Distinctive features
Tron is called the future of blockchain technology. It is developed by adding several Ethereum foundations to its base. Due to the absence of high transaction fees, this technology is ideal for the development of decentralized applications (dApps). The network ensures complete decentralization of programs and eliminates the presence of intermediaries. The platform has its own coin, known under the ticker TRX. The coin functions as the basis for all applications built on the blockchain platform.
Tron Cryptocurrency Technology
The official coin is issued on its own network, which is compatible with the Ethereum blockchain and its virtual machine. For business models, this development is a strategic step that allows you to get high profits. For example, with the help of tokens, media content authors can issue their own digital assets and receive rewards for publications through the sale of coins.
Blockchain has its own set of TRC token standards to empower all types of transactions inside and outside the network. They provide the operation of the entire operating system of decentralized applications using smart contracts. The main standards of TRC tokens are listed in the table:
| TRC-10 | The most developed token standard that initiates transactions on the blockchain. It allows you to carry out transactions at a low cost without using the TRON virtual machine (TVM). |
| TRC-20 | An improved version of the TRC-10 standard. The standard allows transactions of replaceable tokens, for example, cryptocurrencies on the TRON blockchain. Its function is similar to TRC-10. The only difference is that it is connected to the TRON Virtual Machine (TVM). This mechanism allows you to be compatible with ERC-20. |
| TRC-721 | This is the standard for issuing non-fungible tokens. |
Issue of the coin
The developers have issued a limited number of coins, which is 100 billion. According to the CoinMarketCap portal, as of August 2021, 71 billion coins circulate in circulation. Cryptocurrency mining is not possible. The Delegated Proof-of-Stake consensus algorithm does not involve mining.
Security
The Tron (TRX) cryptocurrency is a focus on an innovative way of distributing content and on a technology that allows developers to program decentralized applications on the blockchain.
As of August 2021, more than 500 projects are running on the platform. Among them are games, social services, crypto exchanges and DeFi. The provision of Tron depends on the growing popularity of the platform among both developers and users.
Usage
The main use case for the platform is to support authors by granting ownership of the content they create. This is achieved by storing and tracking information on the blockchain. Content creators can see how their creations are being used and how they'll be rewarded for development. The intermediary is eliminated, the authors receive money directly.
For example, YouTube has a central authority that can censor content, introduce ads, or otherwise restrict use of the platform. Blockchain-based services are managed either automatically or by the community itself. Let's say YouTube doesn't have a central headquarters. Any user then has a copy of its source code and a share of ownership based on the number of relevant tokens they hold. In other words, it owns the platform. If a visitor wants to support a favorite author, 100% of the tip will go to the creator's wallet.
How to get
You can become the owner of coins by exchanging cryptocurrency or fiat funds for a coin in various online services. Finding a coin on the exchanges is not difficult. The digital asset is presented on many resources.
Purchase and exchange
Tron is traded on almost all major crypto exchanges along with Bitcoin and Ethereum. You can buy an asset, for example, on the Huobi Global, Binance, Poloniex and KuCoin platforms. According to data relevant to August 2021, the trading volume reaches $1.17 billion per day. Before buying a coin on the exchange, you should familiarize yourself with the platform commissions, available cryptocurrency pairs, methods of depositing and withdrawing funds.
Coin can be converted in an online exchanger. This method is easier for those who already own virtual assets. The exchange is made in a couple of clicks without registration on the site or user authentication. However, often the conversion rate in such services is not as attractive as on crypto exchanges.
Ways to earn money
There are 3 ways to earn income on a coin:
- Long term investment.
- Active trading.
- Staking.
Investments
Tron is a speculative asset. Its use carries risks even for professional investors. It is important to understand that the process is calculated for a long time. Digital currencies are highly volatile, and in a short period of time, the price of a coin can grow strongly or, conversely, fall. As part of the investment, you need to count on 1-2 years. To protect their investments, the user can place a limit order on the exchange. This averages the price and stabilizes the investment. Purchase within the order is carried out automatically.
Trading
Trading requires knowledge as well as patience. It is important to develop a strategy based on technical and fundamental analysis and strictly follow it. Fear, like other emotions, has a negative impact on the outcome of transactions. The decision to buy or sell should be made based on trading signals, an assessment of the news background and the behavior of other traders.
Staking
Passive income can be earned by holding coins to support the network. Owners invest coins, for example, on the Binance exchange. The reward is calculated from the blocking period and the number of invested coins. Profitability up to 8.17% is possible when staking for 90 days on the Binance platform. Bets are among the least risky investments, but there is also a chance of losing all funds.
Where to buy TRX cryptocurrency
A virtual asset is purchased on a trading exchange or online exchanger. If the user owns any other cryptocurrency and wants to anonymously buy a coin, then the fastest way is to turn to the converter. There are many exchange services, and they differ in the ways of depositing and withdrawing coins, as well as in rates. Cryptocurrency exchanges allow verified visitors to buy coins with fiat funds, as well as exchange digital assets. It is recommended to study the rating and reviews of the site, compare commissions and the possibilities of services.
What affects the rate of cryptocurrency
The following factors influence the quotes of virtual assets:
- General trends in the market.
- Innovations from regulators.
- The emergence of new competitors.
- Public statements of experts and opinion leaders.
- Developer action.
- News background around the project.
Where to store Tron cryptocurrency
You can keep coins both on the official TRX Wallet and in multi-currency services - for example, Ledger, Trezor, Metamask. It is recommended to be careful about the choice of storage, as in the event of loss of access or a cyber attack, the user will lose coins forever. Paper and hardware wallets are recognized as the safest. They do not require constant online access, so it is almost impossible for hackers to get to them.
The future and prospects of the TRX cryptocurrency
Developers work hard to make the network easy to use. Tron has successfully integrated a range of mobile apps, allowing visitors to reward each other with crypto tips (Piewo), rent bikes (oBike), and play. Tron intends to replicate the success of CryptoKitties with their Pet Planet dApp. New strategic partnerships are being prepared.
The Tron Virtual Machine (television dApp) is already available to visitors. The number and quality of applications and games on the blockchain will only grow.
The crypto project roadmap is scheduled until September 2027. It includes the following steps:
- "Great Journey" The project is focused on empowering individual creators to launch their own initial coin offerings to launch their projects on Tron.
- "Apollo". Development of a method that allows content authors to issue TRC-20 tokens.
- "Star way". Implementation of a monetized online decentralized gaming platform.
- "Infinity". Adding a game funding feature.
Analytics and forecasts
A comprehensive review of the TRX crypto coin is impossible without an expert assessment of the future asset.
The price chart between 2017 and 2021 shows good volatility. The asset spent the second half of 2019 on a pullback, but ultimately held the position at $0.011. The bullish mood of the market led to growth and the establishment of a new high at the beginning of 2020, but in February there was another fall, which destroyed all forecasts. The price slowly recovered until September. In the fall of 2020, there was a breakthrough, and the quotes went up sharply. But the price leveled off again, and the coin traded in the $0.022-$0.025 range. The bull run affected many cryptocurrencies in the first half of 2021, including Tron. In April, the price reached $0.16 per coin.
The coin price prediction for 2021 was bullish as the asset showed a notable approach to the all-time high. But the fall of Bitcoin caused a resonance among all cryptocurrencies.
It is difficult to make a long-term prediction given the high volatility of all digital coins and the volatility of the market. Given the momentum, the coin could rise to $0.1 by the end of 2021. This is a conservative estimate and an achievable goal. Portal WalletInvestor predicts bullish growth and a price of $0.3 until 2026. Digital Coin service specialists claim that in 7 years the value will be about $0.27.
If the crypto market does not go for another long-term pullback and the momentum continues until 2022, the Tron coin could reach $5. This is a bullish scenario.
