Blockchain technology was similar to electric cars. Although the concept was cool and it had a lot of benefits, it required a company like Tesla to make it practical. In the same way, blockchain had a few limitations in terms of its performance while it still held a great set of advantages in terms of transparency, security, immutability, and cost-effectiveness. Just like how Tesla impacted the world of electric cars, the world of blockchain and crypto is expected to be impacted by the fast-growing blockchain network called TRON.
What is TRON?
TRON’s powerful virtual machine is used to develop Decentralized applications (DApps) and DeFi protocols but even to make the entire web decentralized. It entered the crypto market in September 2017 and within two years of its introduction, TRON was able to position its native token Tronix (TRX) as one of the top 10 cryptocurrencies in the world in market cap.
What makes TRON formidable is the high performance it brings to the table, never before seen ever in the world of blockchain. It can process 2000 transactions per second, making it a formidable driver to well-known payment processors like PayPal. It also does not charge any transaction fees which means you can sell millions of dollars from one part of the world to another immediately without having to incur any costs.
The founder of TRON launched Tron Foundation, a nonprofit organization in Singapore in 2017 with an endeavor to create a completely decentralized Internet and to provide a democratic system to manage the new network. He was already featured in the Forbes magazine list of 30 under the consumer technology category in Asia.
Keeping in line with the virtues of decentralization, TRON is completely open-source and is focused on expanding the use cases for its TRX token and the protocol. Open source platforms also bring a better degree of security because they allow the community to test the codes without any restrictions before officially launching them in the market.
In fact, TRON has formulated a six-stage roadmap across 10 years to ensure that they are looking at something long-term and not just to see a spike in usage and disappear into oblivion. Right now, we are expected to be at the third stage named Great Voyage where users can run blockchain-based fundraising programs and get dividends regularly.
The TRON ICO
TRON had launched $70 million in its first ICO in 2017 to develop the decentralized ecosystem. Investors who had their trust in the long-term vision of TRON received TRX tokens in exchange for their Bitcoin or Tron ATM (TATM). At that time, TRON was valued at $0.0019. Today, TRON has grown tremendously to $0.1094 which is a formidable growth in less than four years.
The issued crypto tokens facilitate easy peer-to-peer transactions across the blockchain network and they reside in the MainNet. TRON was so successful that it had enough resource bandwidth and experience to move out of the ERC 20 token ecosystem on the Ethereum network to a completely new platform called the TRON blockchain. This gave them a lot of space and freedom to create their own protocol and token standard.
The consensus mechanism
The TRON network uses an improvised version called delegated proof of stake (DPoS). Unlike the classic proof of stake mechanism, the delegated proof of stake elects certain nodes that can approve blocks of transactions. This ensures that everyone gets a fair chance and the accumulation of tokens does not stay confined to a select few crypto investors. In the TRON ecosystem, there are 27 elected super representatives (block producers) who are given the privilege of approving blocks on the network. The representatives, however, are chosen by the community of users who have staked their TRX tokens. The entire process is completely decentralized and it is run by a Decentralized Autonomous Organization (DAO).
This mechanism allows users to earn passive income in TRX whenever they stake their holdings in the network’s inbuilt digital wallet. The DPoS consensus mechanism ensures that the performance of the blockchain network is optimally high in terms of transactions per second. It is one of the factors that contribute to the high throughput of the TRON network. TRON is also scalable and it can support a humongous number of users, bringing in The potential for global usage.
The reliable network structure ensures high availability. The availability is also positively impacted by the user’s asset value, the extent of decentralization, and an improved rewards distribution mechanism.
What is a decentralized autonomous organization? (DAO)
DAOs are the most popular form of decentralized management, which is quite ironic because management has always been conceptualized to be centralized. The DAO is a series of smart contracts that every user can vote to determine the next course of action in the decentralized organization. It is almost like a voting protocol that ensures that the entire ecosystem is kept democratic and does not slip into any degree of centralization whatsoever.
BitTorrent – the big acquisition by TRON
Within a little over a year of TRON being founded, the company made headlines again because it acquired the largest P2P file-sharing network in the world. Although BitTorrent is dubiously known for circumventing certain copyright regulations and causing security threats, it cannot be denied that it is one of the earliest forms of the decentralized network in existence. The files were not stored on a server but rather taken in bits from multiple users connected to the network and being given to anyone else who might want that file. It would not be an exaggeration to say that the technology utilized by BitTorrent is a forerunner for what the TRON blockchain network is today in the cryptocurrency market.
The acquisition paved the way for the TRON network to expand on its functionality and access.
How to buy TRX?
TRX is available to be bought in some of the most prominent cryptocurrency exchanges in the world. It can be traded either for Fiat currency or other crypto coins. There are some exchanges that offer cashback for buying tokens. You can store your tokens in a wide variety of crypto wallets available in the market.
Considering how the TRON team has been crafting a long-term plan and the growth that the TRX token has exhibited in the past four years, now might be the right time for any crypto investor to invest in TRON.
Investing in TRON (TRX) is just a matter of buying tokens from a crypto exchange. If you would like to step into a territory of some risks with better possibilities of returns, you can consider investing in TRON development. Since the TRON Foundation looks to create a comprehensive ecosystem of decentralized applications, you can even go for TRON platform development, TRX 10 or 20 token development, or TRON wallet development.
All you need to do is get in touch with a knowledgeable company that specializes in blockchain development with an immense focus on TRON. They will take care to understand your business requirements and present you with result-oriented solutions that will ensure resounding success quickly.