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Tron is considered a rapidly rising cryptocurrency. The network was developed to provide a decentralized solution in the industry. Tron has gained attention from experts in the crypto market and has secured a high market cap. In this post, we take a closer look at Tron and the TRX token. We also consider how the cryptocurrency is performing, and look at whether or not it might be of interest to those looking for new investment opportunities.
What Is Tron (TRX), and Whether it’s Worth Buying?
Tron is a technology and platform that is based on the blockchain, the decentralized database system that serves as a backend for cryptocurrencies. Tron is currently considered one of the biggest platforms that run on blockchain technology. Tron was developed with the idea of reducing the need for centralized platforms as a way to transact online.
Tron is developed to provide a decentralized system that focuses primarily on content delivery. There are two main priorities in the Tron network. Apart from being decentralized, the Tron system also focuses on a democratized content delivery and distribution system. These are all achieved by using a series of permissionless protocols, along with platforms and tools that feature the same characteristics.
The Tron blockchain focuses on the use of smart contracts. Solidity is the programming language used for Tron smart contracts - which is a language that was originally developed for the Ethereum network. This means smart contracts that are programmed for Tron will be cross compatible with Ethereum as well. In addition to this compatibility, Tron has a few additional features added for smart contracts. What sets Tron aside is the fact that smart contracts are more scalable, and the processing speeds on the blockchain is faster compared to the Ethereum network. There are also more advanced features that developers can use in order to develop dApps and initiate smart contracts with Tron.
Tron can be used for the development of decentralized exchange, lending platforms, online gaming, movie streaming, and much more.
Developers And Governance
The Tron network was initially announced and released in September 2017. At the time, the announcement came from the main developer of the technology behind Tron - Justin Sun. In addition to being the founder of Tron, Justin Sun is also a well-known technology entrepreneur. Since the foundation of Tron, Justin has served as the head of the Tron Foundation. This is a non-profit organization that was developed to help with the development of the Tron ecosystem. After the initial coin offering or the ICO, the mainnet of the Tron network was released in June 2018. Following these events, Tron has earned itself a place in the top 20 list of cryptocurrencies based on market capitalization. The network did reach a place in the top 10 for a brief period of time as well.
TRX, the official ticket for the Tron network, is also known as a governance coin. The platform runs on what is known as the TRON Virtual Machine, or TVM for short. The TVM is responsible for the execution of smart contracts, which form part of the TRON network. A delegated-proof-of-stake consensus, or DPoS, is used to allow for enhanced security throughout the TRON network.
The on-chain governance feature of the Tron network also means the users who hold TRX in their wallets play a large role in shaping the future of the entire blockchain platform.
What Problems Does Tron Fix?
The network is able to fix various issues that people face with centralized networks. Privacy is often one of the primary concerns on a centralized network - individuals fear that their data could be leaked or even manipulated. With a decentralized system, Tron is able to give everyone more peace of mind - knowing that their data will always remain secure.
Furthermore, Tron also fixes the issues related to geo-restrictions that are often placed on streaming platforms or online games. Many services that rely on a centralized network have restrictions in terms of who can use the platform and where it can be accessed from.
Through a decentralized platform, Tron is able to ensure the same restrictions do not apply when services are launched as a dApp on the blockchain. In turn, there are fewer limitations, worries about censorship, and geographic restrictions that developers and users should be concerned about.
What Is Tron (TRX) Cryptocurrency?
TRX is the ticket or token that represents the Tron network. It forms the main cryptocurrency for the entire Tron platform. While TRX is the main currency used on the Tron network, it should be noted that there are additional tokens supported by the ecosystem. These include both TRC10 and TRC20 tokens. With the support for these tokens, developers have more opportunities when developing dApps that will run on the Tron ecosystem.
All of the technology that is part of the Tron ecosystem relies on the presence of TRX. The token forms a basic unit for all of the accounts that are registered on the network. When other tokens are stored in a Tron wallet, the value of each token is dependent on the current value associated with TRX.
The Tron ecosystem consists of a powerful and secure wallet application. This is also one of the main dApps that are associated with the platform. Users interested in buying, transacting with, or storing TRX can utilize the wallet that is part of the system. Alternatively, a number of mobile wallets have also started to offer support for TRC tokens, including TRX. There are certain hardware wallets that are also capable of storing TRX tokens - which can provide enhanced security, especially in cases where you own a large number of TRX.
How Is TRX Created?
A large number of cryptocurrencies use an approach known as either proof of stake or proof of work. These methods have yielded effective results in the past. The Tron ecosystem, however, developed a different approach, which is called the delegated proof of state method.
The Tron network involves a total of 27 nodes that are considered super representatives. These nodes form a critical part of the network and allow for a consensus to be achieved. Representatives are not static or fixed, however, as they rotate frequently. Every sixth hour, new representatives are chosen in the Tron network, who then become the super representatives.
This is essentially how TRX tokens are created in the process. Those who are chosen to be the super representatives for the following six hours gain an opportunity to earn tokens in the network throughout the period of time. This is an alternative form compared to mining, which is found in Bitcoin and other cryptocurrencies that uses a proof of work concept.
While Bitcoin creates a new block every 10 minutes, on the Tron network, a new block appears every three seconds. When a super representative creates a new block on the Tron network, they are awarded a total of 32 TRX tokens.
TRX Profile
Ticket
TRX
Max supply
n/a
Total supply
100,850,743,812
1-year price low
$0.05006
1-year price high
$0.08506
Current Price
$0.08
Market cap
$7 548 729 691
Markets
Binance, Huobi Global, Poloniex
How Does Tron Work?
There are three layers that make up the Tron ecosystem’s architecture. Each of these layers play an important role in allowing the network to operate at its full capacity.
The storage layer is where data on the Tron network can be stored securely. State data related to the blockchain that sits behind the Tron ecosystem is also stored on this layer.
The application layer is where developers generally come into the picture. This layer allows for the development of applications that are all powered by Tron and the TRX token.
At the core, there is a layer that processes different types of instructions. The core layer can process instructions written only in two specific programming languages. These programming languages include Solidity and Java. When instructions are processed on the core layer, code is sent to what is known as the Tron Virtual Machine. Once the code reaches this virtual machine, applications can be executed.
Tron Vs Ethereum
There are a number of differences between Tron and Ethereum, even though the Tron network’s programming language is based on Ethereum. Here is an overview of the primary differences:
Tron
Ethereum
Token
Tronix (TRX)
Ether (ETH)
Blockchain
Open source, cryptocurrency
Open source, cryptocurrency
Smart Contract Language
Solidity
Solidity
Token Standards
TRC10, TRC20
Wide range of ERC token standards
Processing Speed
Fast
Slow - Medium (after upcoming updates - fast)
Supply (Circulating)
71,659,657,369 TRX
116,605,372 ETH
Total Supply
100,850,743,812 TRX
116,605,372 ETH
Transactions Processed Each Second
2,000
20 (up to 10.000 after upcoming updates - fast)
Launch (Mainnet)
25 June 2018
30 July 2015
How To Mine Tron?
Due to the use of a proof of stake system, many people are looking for a way to mine Tron on their computers or by using cloud mining software. It should be noted that this is not how the Tron network works. Remember that a delegated proof of stake method is used in the network, which is different from what Bitcoin and similar cryptocurrencies use.
Thus, Tron is not mined like other cryptocurrencies. Coins have already been created on the network. Instead, users are able to rather earn Tron by becoming representatives. Once a user is selected as a super representative for a period of six hours, they are able to earn 32 TRX per block that they produce.
There are several examples already of how Tron is used throughout the world.
Here are a few to consider:
Travala developed a traveling system that allows people to book accommodation when they travel. The platform has adopted Tron as an accepted form of payment. This allows customers to pay with a TRX balance held in their wallet.
Samsung recently announced the addition of Tron to the Samsung Galaxy S10. This allows users to gain easy and secure access to the wide range of Tron dApps that are available.
The official Tron store is also a good example, where people can shop for a wide variety of items and pay with their Tron account balance.
Tron (TRX) Performance
Tron has been performing well, especially when compared to some of the other blockchain ecosystems that have been founded in the last few years. In the last 12-month period, the value of TRX has increased by 299.2%, which shows that the cryptocurrency definitely has potential.
TRX Perfromance
TRX
1m return
11.71%
1y return
35.39%
Should You Buy Tron (TRX)?
While Tron may seem like a cheap cryptocurrency, it is important to take note of the large market cap. Many experts do believe that Tron has the potential to continue growing in the near future as well. With this in mind, it might be worth investing in cryptocurrency, especially seeing how dApps are becoming more popular.
How To Buy Tron (TRX): 3 Step Algorithm
There are a few simple steps that can be followed to buy Tron - whether this is for investment purposes or to buy digital assets in games or other platforms. Binance is currently a great option when looking at an exchange that sells Tron.
1. Market Analysis
Start by taking a look at the market and decide when the best time would be to buy Tron. Initiate a purchase when Tron is at the lowest value for the day, as this maximizes value gained.
Market analysis Tron (TRX) on Binance
2. Funding Account
Register an account on the Binance platform and follow the appropriate verification steps. You should consider enabling 2FA for better account security.
Head to your dashboard and click on the “Deposit” button. Follow the instructions to add money to your account.
3. Buying Tron (TRX)
Once your account is funded, click on “Buy” at “Place Order” when you are ready to purchase Tron.
Binance is currently considered a top option when it comes to providing support for the TRX token. The company is well established and provides access to a wide range of different cryptocurrencies. Multiple deposits and withdrawal methods are available, along with a convenient cryptocurrency wallet.
Binance gives you access to over 500 different cryptocurrencies, in addition to TRX. The platform also offers low fees. A 0.1% spot trading fee is charged, which is considerably lower when compared to other exchanges in the US. When withdrawing to a fiat currency, the withdrawal will be charged at $1 to $15, depending on the amount and the withdrawal method chosen. This is much less compared to the average on the market, which often go up to $30 per withdrawal.
The Tron ecosystem was developed with the goal of creating an internet that is decentralized. The platform focuses on enhancing privacy, while also making the process of content distribution easier. Tron is both user and developer-friendly. In addition to privacy, an ecosystem is an ideal option for eliminating the current restrictions related to geological location that are in place when working with centralized technology.
FAQs
Will Tron TRX reach $1?
One of the most common questions asked is when or whether Tron will ever reach $1 per token. While not impossible, it is important that crypto investors understand this will not happen anytime soon. An estimated 1,200% increase in value is currently required for Tron to reach this milestone.
Is Tron TRX a good investment?
There are many cryptocurrencies currently considered to be potential investment opportunities. Many do consider TRX to be a good investment, especially since the token has gained quite a lot in terms of value recently. Furthermore, a continuous growth in the demand for what is known as dApps have been identified - which would also cause Tron to grow in the cryptocurrency and blockchain industries.
Why is Tron so cheap?
People often find themselves confused due to the low price point of Tron. The price of a cryptocurrency like Tron is directly related to its Circulating Supply. Tron has a significantly high Circulating Supply, which explains why each token is so cheap.
Is TRX undervalued?
Many cryptocurrency experts do believe that TRX is currently an undervalued and underrated cryptocurrency. It should be known that TRX currently has a market cap rated at $3.6 billion. More than $7.1 billion has been recorded in Total Value Locked for the smart contracts that form part of the Tron network too.
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
