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What is Tron cryptocurrency (TRX)?


Jan 23, 2023

What is Tron cryptocurrency (TRX)?

TRON blockchain platform was developed under the guidance of young Chinese entrepreneur Justin Shan. Earlier, he was a representative of Ripple in China and launched a popular PEIWO voice streaming mobile streaming application.

In July 2017, in Singapore, San registered the non -profit organization Tron Foundation. A few months later, he founded the company in San Francisco (USA).

In August 2017, Tron held an ICO, as a result of which his team raised about $ 70 million. The project was positioned as a competitor to Ethereum and EOS. In the spring of 2018, the Tron test network was launched, and the launch of the main network took place on May 31, 2018.

Justin San’s aggressive marketing and eccentric statements in social networks, which significantly affected the Tron Native Coins, have repeatedly been criticized by the crypto community.

Tron project was reproached for high centralization and copying of competitors. Researchers have found that the project issued for the ICO Whitepaper contains a significant volume of plagiarism from materials from other blockchain projects, including Ethereum.

Justin San announced the departure from Tron at the end of 2021, saying that he was moving away from active management. In January 2022, the Tron Management Reform was completed: the project management passed from Tron Foundation to the Tron DAO decentralized organization.

How Tron works

Three levels are distinguished in the architectural architecture:

  • nucleus -consensus modules, smart contracts, Tron (TVM) virtual machine and account management;
  • levelapplications – used by developers to create decentralized applications;
  • ustorage even – intended for storing network blocks, segmentation of blockchain data and data on its condition.

The TRON blockchain uses the Delegated Proof-OF-Stake (DPOS) consensus algorithm, which was first used by its competitor-the EOS project. Blocks are generated every 3 seconds, and the maximum network performance is 2000 transactions per second.

27 so -called super -representatives (Super Representatives) are responsible for checking transactions and creating new blocks – actually validators who are selected from several hundred NOD operators. The super representative, who generated the next block and processed transactions, receives 32 TRX. He can fully or partially send awards to the purchase of votes in order to maintain control over the network.

Users who participate in TRX stake, delegating their coins to super representatives can get a profitability of about 4% (Staking Rewards data at the end of August 2022).

There are three types of nodes in the Tron blockchain in total:

  • supernodes, who are candidates for super representatives;
  • Full nodes, which transaction transaction and synchronize from blockchain;
  • Solidity nodes, which synchronize blocks from full nodes and provide API to access the blockchain of third -party applications.

What is the Tron cryptocurrency (TRX) for

Blockchain’s native cryptocurrency is the Tron (TRX) coin. For ICO in 2017, following the usual practice for that time, they released the ERC-20 standard of the EThereum network of the same name. The issue of 100 billion TRX was distributed as follows:

  • 40% for public tokensil;
  • 15% for closed pre -sale;
  • 35% to the reserve fund of the project.

Later, all ERC-20 tokens were converted into TRX coins, released already in the TRON blockchain.

TRX is the main unit of calculation in the TRON blockchain. It pays commissions for transactions, as well as awards for steilinging and confirmation of blocks of super -representatives.

When blocking TRX, users receive Tron Power (TP) tokens, which allow voting for super -representative and for proposals for the development of a network in the decentralized control organization Tron DAO.

TRX cryptocurrency can be used as a payment tool for calculations and purchases, including in many online services and using prepaid plastic cards. You can store a coin not only in the official TronLink wallet, but also in most popular cryptocurns, including Trust Wallet, Exodus, Coinbase Wallet, Trustee Wallet, and T.P.

TRON Mainnet TRON launches above 22 cents, but then consistently decreased to about 1 cent. Again the cost of cryptocurrency Tron began to grow in 2020 and reached 16 cents by the spring of 2021. During 2022, the price of TRX ranges about 6-8 cents per coin.

What is Tron cryptocurrency (TRX)?

Tron development history

Back in 2017, the Tron team adopted a project for the development of the project for the next 10 years. It consisted of six eras:

  • Exodus (2017-2018.). Conducting tokensil, development of blockchain and creating a distributed file exchange system.
  • Odyssey (2019-20.). Launching the main network and the introduction of incentives for encouraging content creators.
  • Great Voyage (2020-21.). Opening the possibilities for ICO on the TRON blockchain.
  • Apollo (2021-23.). Ensuring the possibility for content manufacturers to produce their own TRC-20 tokens.
  • Star Trek (2023-25.). Creation of a decentralized platform for games and forecasting.
  • Eternity (2025-27.). Monetization based on community growth.
  • User rebellion

In general terms, this roadmap remains relevant to this day.

In the winter of 2019, to integrate with Bittorrent, Justin San acquired a decentralized Dlive streaming platform, which was then transferred to Tron and BTFS blockchain.

In August 2021, Tron Foundation launched the Tron Arcade fund in the amount of $ 300 million, which over the next three years will invest in blockchain projects in the field of GameFi and games with the Play2Earn model.

In the fall of 2021, Tron Foundation, together with Apenft, launched a fund for $ 100 million, focused on NFT projects. He offers artists support and leadership, as well as copyright consultations and other legal aspects.

How Tron gained popularity thanks to USDT

One of the greatest successes of the Tron network was the release of the popular USDT Stebblecoin in April 2019, which then turned only on Ethereum and Omni networks.

Extremely low translation commissions made USDT based on Tron with a very popular tool for moving the values ​​between centralized exchanges and private cryptocurrencies. The average cost of the USDT TRC-20 translation is less than $ 1, while the transaction of stablecoin on the Ethereum network can cost more than $ 15-30.

By April 2022, the capitalization of USDT-Tron exceeded $ 41 billion, which amounted to almost 50% of the total emission of this stablecoin on all blocks. Largely due to the popularity of USDT by September 2022, the total number of TRON accounts exceeded 109 million.

What projects are included in the ecosystem Tron

Compared to competing TRON blockchain platforms, it has a rather meager list of Defi-applications deployed in this network. According to the Defillama service, only 10 protocols work in this network.

Moreover, the Tron ecosystem is largely centralized, since most tools and services are developed under the guidance and control of Tron Foundation.

Among the largest Defi services can be distinguished:

  • Justlend landing protocol;
  • decentralized Exchange Sunswap;
  • Steabelcoin USDJ.

In total, these three protocols account for more than 90% of the total blocked liquidity in tron.

Despite a small number of applications, Tron is steadily included in the five networks in terms of locked liquidity.

How reliable the algorithmic stabelcoin USDD

In May 2022, the USDD algorithmic stabilcoin, tied to the US dollar, was released by Justin San. Asset emission began simultaneously in Tron, Ethereum and BNB Chain blockchains.

The USDD binding to the dollar is provided by the Tron Dao Reserv (TDR) reserve fund, formed with the participation of Alameda Research, Amber Group, Poloniex, Ankr and Mirana Ventures. The Fund consists of highly liquid assets: USDT and USDC stabilcoins, as well as bitcoin and TRX.

After losing the binding of stablecoin UST, as a result of which the Terra ecosystem collapsed, the USDD team decided to increase the stability of the USDD by introducing an excessive reservation rate. Despite this, a stable coin was still losing a binding to the US dollar.

According to the USDD website, at the end of August 2022, stablecoin is provided by reserves by more than 300%, and its price ranges at $ 1.

With the USDD emission, the equivalent cost in TRX coins is burned. By September 2022, more than 730 million USDDs were produced and almost 9 billion TRX were burned (9% of the total supply of the coin). The asset is included in the top 10 stablcoins on capitalization.

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