What is TRON? Is it Safe to Invest in TRON?

Welcome to another post of DigiNewsFeed.com. In this post we will talk about  what is TRON?. We will also talk about Detailed analysis as well.

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What is TRON?

  • Tron is a platform based on the blockchain that operates in a decentralized manner. It has its cryptocurrency called Tronix or TRX. The Tron Foundation, a profit organization established in Singapore in 2017 created Tron with the goal of creating a global entertainment system that enables affordable content sharing.
  • Initially focused on the market Tron has now gained worldwide popularity and boasts over 50 million user accounts as of August 2021.
  • Justin Sun, the CEO of Tron and founder of the platform oversees its operations from headquarters located in Singapore and San Francisco. Born in 1990 Sun also serves as the CEO of BitTorrent a file sharing program.

Key Points

  • Tron is a platform that leverages blockchain technology to facilitate entertainment applications.
  • Its native cryptocurrency is known as Tronix or TRX.
  • In terms of market capitalization TRX ranks 10th among all cryptocurrencies.

Understanding Tron

  • Tron utilizes technology and peer, to peer (P2P) networks to remove intermediaries and enable creators to directly sell their content to consumers.Developers in the software industry utilize the Solidity programming language for crafting applications that are hosted on the Tron platform.
  • Within this network a digital currency known as Tronix or TRX is employed by users to compensate content creators for accessing their applications. It’s worth noting that content creators themselves do not incur any transaction fees when dealing with Tron. Moreover transactions involving TRX on this platform are also exempt, from fees.
  • To ensure storage of their cryptocurrency assets users have the option to store them in desktop, mobile or hardware wallets.

TRON Overview

Coin NameTRON
Market Cap$6,867,224,498
Circulating Supply89,523,894,412 TRX *

TRON and the Ethereum Blockchain

  • When comparing Trons network architecture to that of Ethereum we can see that they both share elements like decentralized applications (DApps) smart contracts and tokens. However some critics argue that Tron might have borrowed concepts from Ethereum without laying a groundwork of its own.
  • There are signs indicating that Tronix and Ethereum are becoming competitors in the world of cryptocurrency trading. In than a month over $108 million worth of the cryptocurrency USD Coin, which is pegged to the US dollar flowed into the Tron network. This suggests that traders are increasingly turning to blockchains like Tron for more cost effective transactions compared to Ethereum.
  • As per CoinRanking.com data from August 5th, 2021 TRX holds the position in terms of market capitalization, among cryptocurrencies. Its price stood at $0.0705 with a market capitalization of $4.66 billion. It’s worth noting that TRX reached its all time high on this date at $0.2180.

Where Did TRON Come From?

What is TRON? Is TRON is a good Investment?
  • TRON was founded by a tech entrepreneur named Justin Sun, who also established the TRON Foundation to oversee the project. To kickstart the initiative the TRON Foundation successfully raised $70 million through a coin offering (ICO) that took place between August and September 2017. Interestingly this fundraising campaign concluded a few days prior to Chinas prohibition, on ICOs and shortly thereafter Sun himself departed from the country.
  • In March 2018 TRON introduced its testnet platform, followed by the launch of its mainnet two months later. Initially TRON operated as an Ethereum based token running on the Ethereum blockchain; however three months later it transitioned to its own independent blockchain.

How Does TRON Work ?

  • Initially TRON was developed as a token based on Ethereum. However it later transitioned to its network in 2018.
  • During this transition investors engaged in the trading of TRONs cryptocurrency called TRX using their Ethereum tokens. ( on these Ethereum tokens were completely eliminated.)

Understanding the Architecture

  • Similar to Ethereums account based model (ETH) TRON also utilizes an account based model. This means that its protocol can handle key issues, for both TRX and TRX token balances.
  • TRONs blockchain operates through three layers;

Core Layer

  • This layer processes instructions written in Java or Solidity (a language designed for Ethereum) and sends them to the TRON Virtual Machine where they are executed.

Application Layer

  • Developers make use of this layer to build wallets and applications that function with the TRX cryptocurrency and associated software.

Storage Layer

  • This layer is designed to separate data (the historical records of the blockchain) from its state data (which maintains the status of smart contracts).

What Makes TRON Unique?

Is it safe to invest in TRON?
  • TRON has a core mission to decentralize the web. Its objectives are centered around a comprehensive series of initiatives.
  • Right from the start TRON has been committed to transforming the entertainment industry. Its goal is to leverage technology for content sharing eliminating the need for middlemen. By doing content creators can directly engage with consumers and sell their products.
  • As part of its network building efforts the TRON Foundation acquired BitTorrent, a peer to peer file sharing company in 2018. Since then TRON has introduced the BitTorrent token (CRYPTO;BTT) aimed at expanding its protocol and providing incentives, for its usage.
  • TRON has a goal of being an adaptable blockchain platform that can execute smart contracts. To make this possible TRON Virtual Machine (TVM) is designed to be compatible with Ethereums Virtual Machine (EVM) enabling developers to create decentralized applications (dApps) on the TRON network. Additionally there are plans in progress to establish compatibility with virtual machines, in the future.
  • TRON is also venturing into the finance (DeFi) domain through its JUST Network, which encompasses a collection of financial projects based on smart contracts.

Proof of Stake Delegated

  • In order to reach a consensus TRON utilizes a system where 27 “super representatives,” who are elected validators, validate transactions and maintain the history of the system.
  • Every six hours new super representatives are. If chosen they have the opportunity to generate new TRX coins through the protocol.
  • New blocks are added to the blockchain every 3 seconds and those who successfully produce blocks receive a reward of 32 TRX for their efforts. The total annual supply of TRX is 336,384,000 coins.
  • Apart from representatives users can also operate three different types of nodes on the TRON blockchain. Witness nodes, full nodes and solidity nodes. Witness nodes propose blocks. Participate in voting for protocol decisions while full nodes broadcast transactions and blocks.
  • Solidity nodes synchronize blocks, with nodes and provide APIs.
  • For information regarding block production and super representatives please refer to this resource.

Staking TRX on the TRON Network

  • To participate in the voting process for representatives on the TRON network users need a network resource called “TRON Power.”
  • For every 1 TRX they hold users receive 1 TRON Power, which they can choose to “lock” in an account. This locking mechanism prevents spending cryptocurrencies. However it’s important to note that freezing cryptocurrencies will result in users losing their TRON Power and their ability to vote.
  • It’s worth mentioning that TRON Power cannot be traded along with TRX or any other tokens issued on the TRON blockchain.
  • In essence this whole process functions similarly to staking on blockchains like Tezos or Cosmos. Users lock their funds to earn rewards.

Why Choose TRON?

  • Using TRON is crucial if you want to engage with applications running on the TRON network. So if you’re interested in using games or services built on top of the TRON platform acquiring some amount of TRX tokens becomes necessary.
  • Being a holder of the TRX token is also a requirement for participating in the consensus mechanism of the TRON network. This means that if you wish to stake your coins and have a say, in how the protocol operates, having some amount of TRX tokens would be beneficial.
  • Based on investment strategies and considerations traders may find it worthwhile to include some amount of_TRX tokens_in their portfolios.
  • The TRON platform allows users to create their custom applications and tokens which gives traders a sense of trust and belief in the practical uses of blockchain technology. This makes them interested, in getting involved with TRON.
  • Moreover they can also take advantage of the cryptocurrencys capability to generate income by staking. This could potentially help balance out the risks associated with holding assets or ownership.

TRON Partnerships

  • TRON has formed partnerships and collaborations with several notable entities. Lets take a look at some known names associated with TRON;
  • TRON and Samsung (OTC;SSNLF) joined forces for blockchain initiatives. They integrated TRON with Samsungs blockchain keystore enabling users to receive TRX tokens in their blockchain wallets on Samsung smartphones.
  • As reported by TechCrunch TRON acquired BitTorrent in 2018 for a sum of $140 million. This acquisition paved the way for the development of the BTT token and the establishment of a BitTorrent ecosystem on the TRON blockchain.
  • In 2019 TRON made an investment in Poloniex, a cryptocurrency exchange. Poloniex offers discounted trading fees for users who pay using TRX. Furthermore TRON also obtained ownership of the exchange known as TRXMarket.
  • Opera, both as a desktop and mobile web browser introduced support, for TRON by integrating it into its built in crypto wallet in 2019.

Unique Risks with TRON

  • The founder of TRON has been a figure in the cryptocurrency community, which presents some unique risks. In March 2022 The Verge conducted an investigation involving interviews with over 30 sources leaked internal TRON documents and former employees. According to their report;
  • There was pressure on TRONs ICO to be completed before China banned offerings and it seems that Sun was aware of this even before Binances founder.
  • A “Market Making Team” was established to handle trades involving cryptocurrencies like TRON. When Sun had news for the TRON community to announce he instructed this team to buy TRX.
  • Employees were given instructions to manipulate the requirements for ” KYC” (Know Your Customer) on the Poloniex cryptocurrency exchange as it was slowing down user adoption.
  • Engineers were assigned the task of locating bitcoins sent to crypto wallets by Poloniex customers, which unfortunately resulted in the unintentional loss of approximately 230 Bitcoins, from Poloniex.After stepping down as CEO by the end of 2021 to serve as Grenadas ambassador to the World Trade Organization Suns reputation has taken a hit due to allegations of engaging in illicit activities particularly involving pump and dump schemes linked to cryptocurrencies.
  • TRON has also faced criticism for imitating other projects. In January 2018 the CEO of Protocol Labs expressed on Twitter that TRONs whitepaper had borrowed sections from whitepapers of other protocols. A report, in February 2018 stated that fragments from projects were found in TRONs codebase.

Is TRON a Good Investment?

  • TRON despite the controversies surrounding it is widely regarded as one of the cryptocurrencies based on its market capitalization. It possesses capabilities and several compelling reasons to be considered for cryptocurrency investment.
  • One notable aspect of TRON is its usage as a blockchain platform. With over 85 million accounts and than 3 billion transactions processed it has established itself as a prominent player in the field. As of September 2021 TRON ranked second in terms of transactions on a blockchain following closely behind Ethereum.
  • TRONs focus on the entertainment industry sets it apart from blockchain projects. The acquisition of BitTorrent holds potential for further development in this area. Additionally its strong development team is widely recognized as crucial to its success.
  • Another advantage of investing in TRON is the opportunity to earn income through staking. It’s important to note that the more TRX tokens you accumulate the more compelling it becomes to consider TRON as an investment option.
  • However it’s essential to acknowledge that TRON carries higher risks compared to other cryptocurrencies. Its reputation may not be flawless. There are formidable competitors in the market. If you do decide to invest it’s advisable to allocate a small portion of your portfolio and be prepared for significant price fluctuations typical, in cryptocurrency markets.

How to buy TRON

  • In the United States TRON is not widely available as it is not listed on major exchanges. However there are an options for US investors to buy TRON;
  • Kraken
  • FTX.US
  • If you’re interested in staking TRON you might want to consider Kraken or eToro as they offer staking services. FTX.US on the hand does not provide this option. However you can still purchase TRON on that exchange. Then stake it independently using a crypto wallet.
  • It’s important to note that TRON operates in a manner that may be perceived as beyond boundaries. Therefore, before making any investment decisions it’s crucial to evaluate whether the projects capabilities outweigh the associated risks or not.
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