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What is TRON (TRX): How Does It Work

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17.08.2023
5min.
1889
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What is TRON (TRX) Blockchain? How Does it Work, and How is it Different From Ethereum?

Tron is a blockchain-based decentralized protocol for the global digital entertainment industry. The TRON network allows for various DApps to be built on top of it, with smart contracts used to facilitate transactions and peer-to-peer sharing of content. The goal of TRON is to offer users control over their own data, as well as ownership of any rewards they earn while using these apps.

However, many traders are not interested in content sharing because they are looking for completely different things. Should you invest in Tron? How profitable is it to use this blockchain? Do the project and the coin have a future? Today, we will look at the three sides of Tron: a project, blockchain, and a coin. Let’s go!

What is Tron?

Tron is a blockchain-based and decentralized entertainment content-sharing platform. It aims to build a decentralized ecosystem for digital entertainment where users can freely publish, store and own data. Tron also wants to provide developers with an open and reliable infrastructure to deploy their DAPPs (Decentralized applications) on the Tron network. Basically, Tron aims to create a decentralized Internet.

Tron was created by Justin Sun, who is also its CEO. He's known for being one of the earliest Ripple Labs Inc. investors, the project that developed the XRP token (formerly Ripple). It was among TOP-5 most popular cryptocurrencies till the late 2010s and is still widely used by banks.

Right now, Tron is still a promising decentralized project, one of the most widely used blockchains and a popular coin.

Tron crypto ecosystem

Tron has its own blockchain, TRON blockchain explorer (tronscan), infrastructure, and so on. The project’s ecosystem includes TRON Wallet, TRON SR (decentralized voting), WinkLink oracle, and other products. Its blockchain maintains TRON, Tether, USD Coin, USDD, BitTorrent, APENFT, and other tokens, as well as NFTs.

Right now, Tron has the second most developed infrastructure after Ethereum. Basically, the Tron crypto ecosystem has all the needed to overcome Ethereum and be the most popular blockchain ecosystem, except for demand. I think Tron needs to create something unique and revolutionary to become more popular. For now, the project used to be an alternative, not the leader.

How does the TRON network work technically?

The TRON blockchain is a decentralized ledger that stores data on transactions, smart contracts, and dApps. The network uses a consensus protocol called Delegated Proof of Stake (DPoS) to process transactions and create new blocks on the chain. In DPoS, token holders vote for 27 representatives called "super representatives", who are responsible for validating transactions and creating new blocks in the chain. Tron mining is impossible because it uses staking instead.

Difference between Tron and Ethereum

The main difference between Tron and Ethereum technology is that while both blockchains allow developers to build dApps on top of them, Tron only supports smart contracts written in Solidity, while Ethereum supports multiple languages such as C++, Python, etc. This means that developers have fewer options when building apps using Tron's platform.

Tron and Ethereum are both widely used for dApps, including DEXs. For example, WhiteSwap supports both networks at the same time. There are also lots of tokens that operate simultaneously within both blockchains (for example, USDT).

Is the TRON network safe?

The TRX network is a blockchain-based decentralized platform. It's also a community-based blockchain project, as well as a decentralized peer-to-peer network and an open-source public blockchain. Yes, so many geek ways to say ‘safety’.

TRON has the reputation of being one of the safest networks because professionals with years of experience in this field have been working hard to ensure that their product is secure enough for mass adoption. Tron has been around since 2018, and it hasn’t let us down yet.

Benefits of TRON (TRX) blockchain

The Tron blockchain is a public ledger of all transactions in the TRON network. It's decentralized, meaning there's no central authority that controls it or changes its rules. The network also isn't controlled by any single entity; instead, it runs on many computers around the world that are connected to each other. You would say that this refers to every blockchain. That’s true.

Still, TRON has several benefits over Ethereum, including:

  • More transactions per second. Tron blockchain can process 2000 TPS, while Ethereum handles just 20-30 TPS.
  • Faster transactions. Tron often processes transactions faster than Ethereum. One of the reasons is that it is less scaled.
  • Lower fees. Ethereum charges higher fees than Tron does for sending tokens between wallets or exchanges within their respective blockchains. At the moment of writing this, the fee for transferring USDT is $3,54 for Ethereum and only $1 for Tron.

However, if you want to send money outside each network (like from one exchange to another), then this becomes an issue again, as both networks charge hefty amounts for these kinds of transactions.

To sum up, the TRX network is less popular but has better conditions. It is especially good for DEXs because you can swap tokens cheaper and faster. Try the TRX network on WhiteSwap!

Is Tron coin good to invest in?

Disclaimer: All I wrote below is just my opinion. I am just an alien, come on. Think twice before taking an alien's financial advice seriously. So, I think that Tron is definitely not a shitcoin, but it also might not be the next big thing either.

The project has been around for years now, so there has been plenty of time for developers and users to figure out exactly what they want from this platform. Tron is compatible with other similar blockchains like EOS or Ethereum, but it generally faces the same scaling and adopting problems.

It's still unclear whether or not people will actually use TRX tokens or will they only trade them on exchanges. For now, Tron as a digital content-sharing platform is not popular, so it’s still just a native token of a popular blockchain. So, we think it is worth holding as a part of an investment portfolio, but not as the only asset.

How to buy Tron (TRX)?

  • The easiest way to buy TRON (cryptocurrency) is on a centralized exchange (for example, WhiteBIT). Centralized means that you have to trust an exchange and its management team to keep your funds safe. CEXs are easy to use, but they offer less decentralization, privacy, or transparency.
  • You can also buy TRX from a cryptocurrency ATM if one is available near you. You can find them in the city center, railway stations, airports, and so on. This is anonymous, but an extra fee will be charged. Also, it may be difficult to find such an ATM. They are not as common as fiat ATMs (especially if you live in a non-crypto-friendly country).
  • Or buy Tron (TRX) on a decentralized exchange such as WhiteSwap, where users trade directly with each other instead of relying on third parties like on centralized exchanges. This makes things easier and offers real decentralization.

How to Swap TRON (TRX) on WhiteSwap DEX?

To buy or sell TRX on WhiteSwap, go to the swap tab. Then switch to the Tron network in the top right corner and connect your TronLink wallet. Finally, choose the tokens and swap them.

What is the future of Tron (TRX)?

The future of TRON (TRX) is still unclear. Decentralizing the whole WEB is an ambitious goal, but it’s all about adoption. It would only make sense when millions and billions of people are ready to use it. Right now, it has a market cap of $5.7 billion, and there is space to grow.

So, nobody knows if Tron has the future, but unlike thousands of shitcoins, it has the present! And this is very important.

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