Cryptocurrency

What is Tron (TRX) | Whitepaper Summary

What is Tron (TRX) | Whitepaper Summary

What is Tron (TRX)

TRON is an open source, decentralised, blockchain which has the capabilities of running smart contracts like Ethereum smart contracts. Like every other blockchain, it uses a consensus algorithm to decide on the block creator. However, unlike Bitcoin and Ethereum it uses the Proof of Stake Algorithm which is known to be a greener alternative to the Proof of Work Algorithm.

The blockchain uses a native token called Tronix (TRX) as a medium of payment in the blockchain. It was established in 2014, by Justin Sun and since 2017 has been overseen and supervised by the TRON Foundation, a non-profit organisation based in Singapore. TRON also happens to be the only made in China Blockchain supported by Samsung.

TRON’S (TRX) ARCHITECTURE

Tron Whitepaper defines a three-layer design with a storage layer, the core layer, and an application layer as sub-layers.

  1. Core layer: The foundational operations that make up the underlying protocol for the blockchain are carried out by the core layer. Driving TRON’s novel consensus process for adding new blocks to the chain is one of the main responsibilities. Modern Delegated Proof of Stake (DPoS) consensus architecture is the system’s main inspiration. This layer is also in charge of the system’s smart contracts and account administration.
  2. Storage layer: The TRON storage layer is designed to accommodate increasingly sophisticated data storage requirements as the TRON blockchain architectural landscape changes. It is intended for use as a potent distributed data storage system that offers a high level of stability and security.
  3. Application layer: The application layer is made to make it easier for software developers to communicate with the TRON ecosystem. The TRON blockchain has a lot of potential for supporting new apps created on top of the platform because it has its own integrated smart contract mechanism. Even now, a sizable number of wallets and dApps are supported on the TRON network. Decentralised crypto exchange JustSwap, the third most well-liked dApp in the TRON ecosystem, is one of the most well-known. Another noteworthy project is called Sun, a DeFi project that enables users to stake the Tron crypto, or TRX, for mining and receive TRC-20 tokens in exchange.

ADVANTAGES OF TRON (TRX)

  1. Speedy Transactions: Tron is one of the quickest blockchains available, albeit it is not the fastest. Tron is more user-friendly than blockchains like Ethereum or Bitcoin because it achieves transaction finality in under three seconds with a transaction speed of up to 2,000 TPS. Additionally, the speedy transaction completion is advantageous for Tron’s main use case as a platform for the dissemination of entertainment and material.
  2. Transaction costs on Tron are incredibly low: As you only have to pay $0.000005 whenever you conduct a transaction with Tron, the transaction fees are practically nonexistent. The success of TRON in carrying out its main net launch and the adoption of its token by traders and fans will ultimately determine whether these low transaction costs continue to exist shortly. This will also highlight their significance over the long term.
  3. A fantastic crew and sound development roadmap: Tron has a tremendous team behind it, which is possibly one of its greatest benefits. In actuality, this project is currently being worked on by some of the most bright and promising individuals in China with the crucial goal of continually improving it.
  4. It enables a higher number of transactions at a time.
  5. Special Use Case: Tron is a very flexible blockchain that can be used for trading multiple tokens, DeFi functionality, and sending cryptocurrencies. However, the decentralised dissemination of entertainment and content is its main application. This sets Tron apart from other blockchains and positions it as a strong contender to emerge as one of the market leaders in a future multi-chain environment.
  6. Governance: Users of Tron have the option to vote for Super Representatives and the organizations they work with to advance the ecosystem as a whole. Staking TRX coins is a necessary step to obtain voting rights.

TRON’S TOKENOMICS

TRX is available in 100 billion units overall. 40 billion TRX and 15.75 billion TRX were distributed to investors in private sales, respectively. 34 billion TRX were donated to the Tron Foundation, while 10 billion TRX were given to Justin Sun’s company, Peiwo Huanle.

A brick is created by Tron every three seconds. Block producers are paid 32 TRX for each completed block, while nodes are paid 16 TRX. That translates to an annual TRX inflation rate of 500 million.

Additional Read: Tron Price Prediction

TRON’S (TRX) PERFORMANCE OVER THE YEARS

TRX/USDT | Source: Tradingview

Tron TRX FACES STIFF COMPETITION IN THE CRYPTO SPACE

Some of the major competitors of the TRON network are:

  1. Ethereum: With the upcoming Eth2.0 upgrade, Ethereum is moving away from the proof of work model to the proof of stake model. Also, since it is a more mature project than the TRON network, it is one of its biggest competitors.
  2. Solana: It offers almost all capabilities of Ethereum in a much more cost-effective and time-efficient way. It is currently one of the fastest blockchains out there with a staggering 65,000 transactions per second.
  3. Bitgert: It is currently the fastest blockchain. This blockchain has the capability of processing 100,000 transactions per second. It also supports deploying smart contracts with nearly zero transaction fees.
  4. Cardano: The main selling point of Cardano is its peer-reviewed research and development through evidence-based methods. This makes the blockchain extremely secure and sustainable. It currently has a processing power of about 250 transactions per second.

Read more on Ethereum Merge 

&

Cardano Vasil Upgrade

TRON WHITEPAPER SUMMARY (ROADMAP & VISION)

Currently, its latest venture, the USDD an algorithmic stablecoin created in the wake of the UST’s(US Terra) demise has still survived even when people are criticising the entire existence of algorithmic stablecoins. Another vision of TRON is to completely change the entertainment industry by advancing decentralised content sharing on its platform. TRON is also the blockchain of choice for developers to host entertainment applications.

Additional Read: Etheruem vs Tron

CONCLUSION

Tron Whitepaper Summary: The project aims to decentralize the sharing of content on the internet. With other rivals already operating as centralized businesses, including Youtube, Amazon Prime Video, Netflix, etc., it can undoubtedly limit the expansion of Tron. Tron is a blockchain that focuses on smart contracts and entertainment.

It enables users to produce and distribute information and smart contracts. The ultimate goal of Tron is to establish itself as a low-cost worldwide entertainment standard. The native token of the platform, TRX, can be used to tip content producers and make service payments.

The younger generation is seeking ways to reinvent how things were done in the past and utilize blockchain technology. Tron might be a valuable asset that produces gains over time.

HOW TO INVEST IN TRON (TRX) 

Use this three-step process to buy your first TRX token using the CoinDCX, crypto app.

  • Sign Up for the CoinDCX account: Enter a valid email address and a user name on the sign-up page. Once the Email Id has been verified, set a strong password to secure your account.
  • Verify the account: You need to complete your KYC, to buy a TRX token on the CoinDCX platform. All you need to do is upload the documents and your account will be set up in 15 minutes.
  •  Buy TRX INR: After the account has been verified, you can deposit any amount of fiat currency you are comfortable with and start your crypto journey!

Additional Read: Ethereum Whitepaper Summary 


Disclaimer: User Generated Content – Original Content created by a member of BITS Pilani, under the consultation of Dr. Amit Dua, Assistant Professor, Computer Science Department, BITS Pilani, Pilani Campus in association with CoinDCX. The views and opinions expressed within this post belong solely to the author.
Author: Abhishek Das, Harshit Jain


 

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