Blockchain technology has been growing since Bitcoin started its journey in 2009. Blockchain is spreading more into many business industries for decentralised and secured mechanisms.
Blockchain technology refers to storing information in blocks digitally. It’s a decentralised and distributed digital database system connected to multiple nodes in a computer network. In a blockchain, individual blocks contain records of transactions that cannot be altered or tampered with. Blockchain gained popularity for cryptocurrency storage and transfer systems.
Tron is one of the decentralised cryptocurrencies based on blockchain. This blockchain platform works for forming, trading, and managing digital blockchain assets. It provides various services, such as a smart contract system, a digital wallet, a domain name system, and a peer-to-peer node for transferring tokens in a network. The purpose of this post is to shed some light on a comprehensive guide to Tron’s blockchain technology.
Tron is a consistent blockchain networks since it started. We will learn more about tron blockchain details in this article.
What is Tron Blockchain?
Tron is an open-source, decentralised digital currency on the blockchain platform. Tron blockchain’s system is known as Tronix (TRX).
This system operates on consensus algorithms based on smart contracts, dApps, and proof-of-stake.
Tron is the only cryptocurrency that is tagged as made in China. Primarily it was based on Ethereum (ERC-20 token).
Having said that, let’s jump ahead to learn more about Tron’s founding and history.
Founder of TRON Blockchain
Justin Sun, the founder and CEO of Peiwo, developed the TRON blockchain in 2017. In China, Peiwo is the most popular voice streaming website. He integrated TRON into Peiwo within months of its launch in 2017, which helped it gain more active users.
Sun also worked with the cryptocurrency Ripple as its Chief Representative for Greater China. He sought to hasten the decentralisation of the Internet using blockchain technology and decentralised applications (DApps).
History of TRON Blockchain
Tron was mainly founded in 2014, but it became overseen by the public after establishing the Tron Foundation (Non-profit Organization) in 2017. Through an initial coin offering, the Tron foundation raised $70 million in the same year. China outlawed digital currency shortly after that.
With new tech developments, Tron switched from an Ethereum-based platform to an intrinsic peer-to-peer network. By developing Genesis Blocks, Tron announced their independence from other blockchain technology.
In May 2018, TRON unveiled MainNet Odyssey 2.0, marking several noteworthy achievements.
The TRON blockchain platform’s growth allowed it to acquire BitTorrent, a pioneer in decentralised services with over 100 million users. With BitTorrent’s acquisition, TRON’s market capitalisation surged, making it one of the top 10 cryptocurrencies on the planet.
As of 2019, Tron’s market capitalisation was $1.6 billion.
Tron blockchain is developed with many advanced features and services for its user. Now let’s take a closer look at the features of the Tron ecosystem.
Features of Tron Blockchain
The following are some of the key features of Tron that you should be aware of.
- The most significant component of TRON is its distributed infrastructure, which includes forecasts, trades, and autonomous gaming.
- Users can distribute digital assets, so others can purchase them and enjoy the benefits.
- It would be the liberation of all data. Uploading, sharing, and distributing content is free for all users.
- Using the platform, you can transfer currency from one source to another for free or extremely cheap.
- TRON makes it easy to make DApps and implement smart contracts, unlike other blockchain platforms.
- The TRON platform makes it easy for users to manage their own ICOs and hold their digital currencies.
- As TRON gains more users and industry support, it will only continue to grow.
Since we now have a basic understanding of Tron blockchain, let’s take a closer look at how Tron blockchain works.
How Does TRON Blockchain Work?
Several complicated words may hinder your understanding of the TRON blockchain platform. So, having a thorough understanding of the key principles behind Tron will enable you to understand how the blockchain works.
Tron Virtual Machine (TVM)
Tron uses a comprehensive Turing-based, lightweight virtual machine developed to work for the Tron ecosystem. Tron virtual machine’s (TVM) aim is to serve a secure, effective, balanced, and scalable platform to the user. Their system follows a personalised or custom-made blockchain network.
TVM can operate seamlessly with the current and stable smart contract inspired by the EVM mechanism. TVM also offers DPoS consensus and energy concepts that support various forms of Gas techniques on EVM. This system offers free transactions and smart contracts without TRX charge. The total active amount of tokens does not restrict the TVM machine’s computing capacity.
DPoS (Delegated Proof of Stake)
DPoS consensus mechanism allows clients to use their currency for selecting delegates by voting. Selected delegates get the power to decide necessary needs and steps for the Tron network.
SRs (Super Reprensentatives)
The system appoints twenty-seven super representatives (SRs) who have the job of keeping transaction tracking records (history) to authenticate digital transactions. After every six hours, a super representative becomes selected to observe and keep the history of the transaction.
They receive a TRX coin from the system to contribute to this duty. In the Tron blockchain, a new block is created every three seconds. Whoever adds these blocks receives 32 TRX coins.
TRON uses smart contracts to implement TVM-compatible tokens. These tokens work with the TRC-20 standard, which is compatible with ERC-20.
Tron’s Architecture stands mainly on three bases: storage, core, and application.
Tron uses a stack-based virtual machine and a set of systematic instructions to operate the system. The use of high-level smart languages is crucial to developing an advanced, reliable platform for clients. Tron’s developers develop smart contracts in advanced coding languages and ensure their reliability. This helps tron client users to create smart contracts and use other features easily.
Tron built two types of storage: Block Storage and State Storage which enable a well-defined distributed storage protocol. A variety of storage can smoothly maintain and access categorised incorporated databases into the storage layer architecture.
Tron developers implemented a bunch of advanced DApps (decentralised apps) and intrinsic Tron wallets. Tron installs and operates smart contracts with many advanced services to meet clients’ security and trust.
The following are the four core modules of the Tron blockchain.
You probably heard of the proof-of-work (PoW) system, which uses a lot of electricity and has fewer transactions per second (TPS). Following a thorough examination, TRON uses a proof-of-stake (PoS) mechanism to simplify everyday chain management. Furthermore, DPoS will help them meet all future blockchain development expectations.
Smart Contract Module
Users of TRON can create complicated smart contracts using this module and run them on TVM. Solidity, or any other blockchain programming language, is used to create smart contracts.
Digital Token Module
This module consists of the Configuration and Deployment modules. Configuration modules let users or blockchain developers customise digital tokens. After customising a token, the user can generate it with the deployment module.
With KhaosDB, TRON stores all user chains in its full-node memory, allowing witnesses to quickly switch from the active chain to the main chain.
Tron ecosystem developed three network nodes The Witness node, The Full node, and The Solidity node. They are:
- Super Representatives (SRs) can create Witness nodes and are responsible for managing the voting process and generating new blocks.
- Full Nodes’ function is broadcasting Application programming interface (API), Blocks, and transactions.
- Solidity nodes support indexable API and synchronise Full nodes created blocks.
Also, the Tron network offers three kinds of accounts – Regular accounts, Token accounts, and Contract accounts.
Now that we know about the key principles of Tron’s working process, it’s time to learn about its tokenomics.
Tron operates two types of tokens. One is TRC-10, and another one is TRC-20.
Tron network enables each account to issue at 1024 TRX expense. Clients need to call for a token name, TRX exchange rate, total capital, circulation duration, website, maximum bandwidth per account, and amount of frozen token. Token issuance can be customised by following the maximum token transfer, Bandwidth points, locking duration in days, total locked token, etc.
TRC – 20
This token is the updated and maintained technical standard used for smart contracts to execute tokens by the Tron virtual machine. TRC-20 is ERC-20 compatible.
There are some differences between these two tokens.
- TRC-10 can be accessible by smart contracts and APIs, but TRC-20 supports interface customisation, and only smart contracts can be accessible.
- TRC-10 token transaction charge is 1000 times lower than TRC-20. TRC-20 charges for APIs and transfer costs.
What are the Advantages of TRON (TRX)?
Tron network selects super representatives for holding and controlling TRX. In this selection process, users can participate in voting. It is also beneficial for this platform that content creators can receive coins for their contributions while still maintaining full control over their duties.
Here, the Tron platform is distinctive as it allows users to get paid for their contribution by sharing content, and information, adding blocks, etc. Additionally, the transaction charge of the Tron ecosystem is quite low.
Tron network’s digital transfer system speed is extensively fast, allowing up to approximately 2000 transactions per second.
Other cryptos like Ethereum (ETH) support 25 transactions per second, and Bitcoin (BTC) does three to six transactions. Global buyers and sellers can trade TRX coins twenty-four hours in seven days.
Storage system is one of the important feature and service when it comes to virtual currency storage technology. We will learn how to store tron in the following paragraphs.
How to Store Tron (TRX)
There are two ways to store TRX tokens. Both have their risks and advantages. If you want to start your crypto journey, purchase a smaller amount of TRX, as the crypto market is always volatile. As a new investor, a mobile wallet should be your choice.
If you want to invest a good amount in Tron and continue for a long time, you should use the hardware wallet option. Hardware wallets store (offline) your TRX coin in ‘cold storage”. With this offline storage, your collection will be safe, out of hacking risk.
This wallet’s benefit is that it allows users easy access. With a mobile wallet, you can instantly access your Trx account. Although, it has a higher risk of hacking as mobile remains online most of the time.
As a result of getting the Tron blockchain assessment, you may be thinking if it’s a good idea to invest in Tron. In the following section, we’ll discuss it.
Is It Risky to Invest in TRON (TRX)?
The cryptocurrency market is always volatile and risky. Prices can fall down or up at any time. Before investing in any crypto, you should conduct thorough research. Check on project details, vision, white paper, developers, etc. If you want to buy Tron, you will be charged capital tax on any amount, be aware of this. Moreover, remember about risk-return on any crypto investment.
Before trading, you must create an exchange account that charges you for deposits or withdrawal fees. If you do your proper research before funding, you will get the answer, whether you should proceed or not.
It’s true that Tron’s price is way too low; moreover, other risks remain. But their project is authentic by far. If you are looking for a long-term, secure investment, check for Tron.
Tron (TRX) Current Pricing
At the moment of writing (September 2022), Tron’s price has dropped by 2.79% in the last week. The current TRX rate is $0.06514, with a 92.39B (TRX) circulating supply.
That’s all for today’s roundup on Tron blockchain. The TRON blockchain is one of the hottest buzzwords in the cryptocurrency world. The platform’s scalability and transactions per second make it more competitive than its competitors.
Although cryptocurrencies have some unique technical features, such as processing more transactions per second than their competitors, investing in them can be risky. You should research using different sources and make investments based on your investing goals.