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Tron Blockchain and its Cryptocurrency

Tron-Blockchain-and-its-Cryptocurrency

Tron is a blockchain-based decentralized digital platform which has its own cryptocurrency, called Tronix or TRX. Justin Sun CEO from Singapore non-profit organization founded the Tron Foundation in 2017 and aimed to host a global media and entertainment system for the cost-effective sharing of digital content.

Although Tron was initially marketed in Asia, now it had gone global with offices in Singapore and San Francisco. The platform had more than 50 million accounts by now.

As a blockchain-based digital platform, Tron primarily hosts entertainment applications and has its own in-house cryptocurrency, called Tronix or TRX. It is worth noting that TRX ranks 31st among cryptocurrencies in market capitalization in August, 2021.

Understanding Tron

Tron takes the advantages of the blockchain and peer-to-peer (P2P) network technology to eliminate the middleman and permit content creators to sell their work directly to consumers. Solidity programming language is widely used by software developers to create apps that are hosted on the Tron platform. As already mentioned, the currency used on the network is Tronix, or TRX. Network users spend TRX to directly pay the content creators and access their applications. However, content creators do not pay a transaction fee to Tron as TRX transactions also are free on the platform. Accordingly, users may store their crypto-assets in a desktop, mobile, or hardware wallet.

Tron and the Ethereum Blockchain

Tron and the Ethereum Blockchain

Many make comparisons between Tron network structure and that of the Ethereum platform. It is known that Tron also uses some of the same basic building blocks, such as decentralized applications (dApps), smart contracts, and tokens. Though, Tron blockchain has been criticized as it actually borrows rather than builds the basics of its platform.

Signs suggest the competition between Tronix and Ethereum for the business of cryptocurrency traders. The circulation of Tron surpassed $108 million in just less than a month since the support launched. It confirms that crypto traders are increasingly turning to blockchains that provide cheaper transaction fees with faster speed compared to Ethereum.

Since August 2021, TRX ranks 31st among cryptocurrencies in market capitalization, check CoinRanking.com for more information. Its price was $0.0705, giving it a market capitalization of $4.66 billion. The highest price since then was $0.2180.6

The Potential of Tron

The Potential of Tron

Tron was created to directly challenge the media industry, such as Amazon and Netflix. It provided the slogan “Decentralize the Web” and aims to eliminate the corporate middleman from the process of consuming media. Although there was a current cryptocurrency boom with TRX, the programming it brings to its users will be the key factor to its success in future.

In the following we discuss the technical architecture of Tron blockchain and see how different is it from others.

The Tron blockchain protocol was modeled considering the Google Protobuf (Protocol Buffers) system which is a method for serializing structured data and is designed to allow the quick and efficient communication between platforms and systems. Like Google Protobuf, Tron blockchain is used to streamline communications and ensure easy integration with a multitude of sophisticated programming languages. The structure of Tron includes a three-layered system as a core layer, storage layer, and application layer. Each layer is optimized for a specific set of functionalities.

The core layer performs multiple fundamental tasks that make up the foundation of the blockchain’s underlying protocol. A primary task in core layer is to drive TRON’s innovative consensus procedure in order to add new blocks to the chain. This system is inspired by the latest Delegated Proof of Stake (DPoS) consensus architecture. This layer also supervises account management and the smart contracts empowering the system. Solidity (created by the Ethereum network) is the foundational smart contract language for the TRON blockchain ecosystem. Some reason for specific selection of Solidity inlude its compatibility with Ethereum and its capability in creating and maintaining decentralized applications (dApps) simply and efficiently.

The TRON storage layer, on the other hand, enables more complex data storage within TRON blockchain architectural landscape. Its design creates a powerful distributed data storage system with a high level of stability and security.

Finally, the application layer allows effective interaction of software engineers with the Tron ecosystem. Since the Tron blockchain features stem in smart contract system, it has the potential to support new applications built on top of the platform. Therefore, the Tron blockchain supports a large number of wallets and dApps, such as decentralized crypto exchange JustSwap, the third most popular dApp in the Tron ecosystem. Another notable application is Sun, a DeFi initiative that allows users to stake the Tron cryptocurrency, or TRX, for mining and earn TRC-20 tokens in return.

Taking the advantages of Google Protobuf standards, simple and universal integration with most programming languages and design methodologies are provided with Tron. In addition, its Protobuf system improves the overall efficiency of the protocol and its developmental capabilities for constructing new applications.

About Nicolle

She is an Indian Freelance writer. She loves thinking, learning, and writing about all things Web3.

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