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About TRON
What Is TRON (TRX)?
- Decentralized blockchain-based operating system
- Launched in 2017
- Aims to provide full ownership rights to digital content creators
- Supports smart contracts, blockchain systems, and decentralized applications (dApps)
Who Are the Founders of TRON?
- Founded by Justin Sun, CEO
- Recognized by Forbes Asia in its 30 Under 30 series
What Makes TRON Unique?
- Environment for content creators
About TRON: A Revolutionary Blockchain Ecosystem
Introducing TRON (TRX): A Revolutionary Blockchain Ecosystem
TRON (TRX) is a decentralized, blockchain-based operating system, pioneered by the Tron Foundation and launched in 2017. Initially, TRX tokens were ERC-20-based tokens, deployed on the Ethereum network, but a year later, they migrated to their own proprietary network.
Initially, the project was conceived with the ambitious goal of empowering digital content creators with full ownership rights. The primary objective is to rectify the imbalance in the current system, where creators receive only a meager share of the revenue, and incentivize them with more substantial rewards for their efforts. This is achieved by facilitating a direct connection between content consumers and creators, thereby eliminating intermediaries such as YouTube, Facebook, or Apple.
The TRON software facilitates the deployment of smart contracts, accommodates diverse blockchain ecosystems, and empowers the development of decentralized applications, commonly referred to as dApps. Notably, the cryptocurrency platform operates on a transaction model analogous to Bitcoin (BTC), specifically the Unspent Transaction Output (UTXO) paradigm. All transactions are recorded on a public ledger, thereby enabling users to access a transparent and immutable record of operational history.
Thus, the platform was designed to foster a decentralized internet ecosystem, providing developers with a robust toolset to craft decentralized applications (dApps), thereby presenting a viable alternative to Ethereum. By leveraging the TRON network, anyone can create and deploy dApps, share content, and receive digital assets as a form of compensation for their creative endeavors. The unparalleled freedom to create and disseminate content without the burden of exorbitant transaction fees is undoubtedly a significant advantage of the TRON network.
The Visionaries Behind TRON: Unveiling the Founders
TRON was founded by Justin Sun, who currently helms the organization as CEO. A distinguished alumnus of Peking University and the University of Pennsylvania, he was esteemed by Forbes Asia in its prestigious 30 Under 30 series, recognizing exceptional entrepreneurs.
Born in 1990, he boasts a notable affiliation with Ripple, having previously served as the company’s chief representative for the Greater China region.
Unveiling the Uniqueness of TRON
TRON has established itself as a decentralized ecosystem where content creators can forge direct connections with their audiences, unhindered by intermediaries. By circumventing traditional, centralized platforms – including streaming services, app stores, and music sites – creators can retain a larger share of their earnings, rather than surrendering a significant portion to middlemen. This paradigm shift could also lead to more affordable content for consumers. As the entertainment industry continues to undergo rapid digitization, TRON is poised to capitalize on the opportunity to integrate blockchain technology, thereby gaining a competitive edge in this burgeoning sector.
The company boasts a globally dispersed team of exceptionally skilled and seasoned developers, comprising top talent sourced from esteemed organizations, including Ripple Labs.
Last but not least, whereas some other blockchain projects can be opaque about their plans for development, TRON distinguishes itself by providing a transparent roadmap that outlines its ambitious intentions for the forthcoming years.
The Circulating Supply of TRON (TRX) Coins: A Closer Look
TRON boasts a total token supply of approximately 100 billion, with a circulating supply of around 71.6 billion at the time of writing.
In 2017, a token sale was conducted, during which 15.75 billion TRX was reserved for private investors, while an additional 40 billion were set aside for participants in the initial coin offering. The Tron Foundation received an allocation of 34 billion, and a company owned by Justin Sun received 10 billion.
In essence, this distribution paradigm entailed that a substantial 45% of the total TRX supply was allocated to the founder and the project itself, whereas a slightly smaller proportion of 55% was dispersed among investors. Notably, critics have argued that this ratio is significantly higher than what has been observed in other cryptocurrency projects.
The Security Mechanisms Underpinning the TRON Network
TRON employs a consensus mechanism founded on delegated proof-of-stake, a cutting-edge approach that ensures the integrity and security of its network.
By freezing their TRX, holders can unlock Tron Power, thereby granting them the authority to cast votes for “super representatives” who assume the critical role of block producers.
In return for verifying transactions, block producers are incentivized with TRX rewards, which are subsequently distributed among their supporters who cast votes in their favor.
According to TRON, this approach enables its blockchain to attain elevated throughput capacities.
Acquiring TRON (TRX): A Comprehensive Guide to Exchanges and Platforms
Tron can be purchased from numerous exchanges on which it is listed, including prominent platforms such as Poloniex, Bancor, KuCoin, Binance, Bitfinex, and Coinbene, among others. Notably, however, it is not supported by Coinbase.
Discover the seamless process of converting your fiat currency to Bitcoin, the ideal entry point for acquiring alternative cryptocurrencies.
Fundamental Network Principles:
The data hosted on the TRON network is liberated from central authority, existing in a realm of unbridled freedom. Content creators are remunerated with TRX tokens, a testament to the value of their intellectual toil;
TRON empowers content creators to develop their own coins, seamlessly integrating them into their bespoke applications.
TRON also facilitates decentralized gaming on its network, enabling players to incentivize and reward content creators directly with digital assets.
The TRON ecosystem is founded upon a tripartite structure, ensuring seamless and robust functionality. The architectural framework is as follows:
- The Storage Layer serves as a secure repository for network data, blockchain state, and historical data, effectively compartmentalizing diverse ecosystem data;
- The Application Layer is where developers take center stage, leveraging TRX to craft innovative applications and design wallets;
- The Core Layer is responsible for processing various instructions, which can only be written in two programming languages: Solidity and Java. Operating on the principle that the core layer computes and processes instructions before transmitting them to the Tron Virtual Machine, where the logic unfolds and decentralized applications (dApps) are executed.
The cornerstone of TRON’s network security is its innovative delegated Proof-of-Stake (dPoS) system, a distinctive alternative to traditional Proof-of-Stake and Proof-of-Work consensus algorithms. This pioneering approach confers a significant competitive advantage, as it enables the network to operate with remarkable energy efficiency. Moreover, TRON’s layered architecture facilitates the simultaneous processing of multiple transactions, outperforming traditional Proof-of-Work (PoW) systems. According to the development team, TRON boasts an impressive throughput, capable of handling up to 2000 operations per second without incurring fees, thereby ensuring seamless, cost-free transactions on the network.
TRON is a blockchain-based operating system designed to render this technology accessible for everyday use. Notably, while Bitcoin’s transaction capacity is capped at six per second, and Ethereum’s at 25, TRON boasts a network capable of handling an impressive 2,000 transactions per second.
Delve deeper into the intricacies of this project by exploring our comprehensive analysis of Tron.
This project is perhaps most aptly described as a decentralized platform dedicated to facilitating the seamless sharing of content and entertainment, with a notable milestone being the acquisition of the renowned file sharing service BitTorrent in 2018.
TRON has articulated a six-phase roadmap, encompassing ambitious objectives. These include the development of a decentralized file-sharing system, incentivizing content creation through financial rewards, empowering creators to issue personalized tokens, and revolutionizing the gaming industry through decentralization.
TRON is also renowned as one of the most sought-after blockchain platforms for developing decentralized applications (DApps).
The USDD Stablecoin: A Beacon of Stability in Turbulent Markets
In April 2022, Tron’s CEO, Justin Sun, unveiled plans to introduce an algorithmic stablecoin, dubbed Decentralized USD or USDD. This innovative asset employs an automated balancing mechanism, which involves burning $1 worth of TRX to mint 1 USDD. The Tron DAO Reserve is tasked with overseeing USDD and ensuring its value remains stable relative to its underlying collateral. Additionally, the Reserve sets the APY offered to users who stake USDD. At the time of writing, users can earn a substantial 30% yield on staked USDD.
While USDD has faced criticism for drawing inspiration from the design of UST, Terra’s algorithmic stablecoin that triggered a devastating bank run and subsequent collapse of the Terra ecosystem, it boasts distinct features that set it apart. Notably, USDD’s decision to adopt a guaranteed over-collateralized framework diverges significantly from UST’s undercollateralized model. The USDD protocol is collateralized by a diverse range of cryptocurrencies, including Tron, Bitcoin, USDC, and Tether.
The minimum collateral ratio for USDD has been established at 130%, ensuring that the value of the collateral deposited in the protocol’s cryptocurrency reserves surpasses the value of USDD in circulation. This setup significantly diminishes the likelihood of a sustained depeg of USDD. Notably, despite its 130% minimum collateral ratio, USDD is currently backed by collateral reserves collectively valued at over three times the value of USDD in circulation. The Tron DAO Reserve aims to amass a $10 billion treasury to underpin the value of USDD.
Another pivotal element crucial to the stability of USDD is the operation of Super Representatives, comprising Tron’s esteemed institutional partners. These incentivized entities exert influence on both sides of the trade, effectively absorbing potential volatility in the price of USDD. For example, when the price of USDD dips below $1, the Super Representatives burn a portion of their USDD holdings to mint TRX, thereby bringing the value of USDD back to its target price.
Notwithstanding these stability mechanisms, USDD, as a stablecoin, has not been immune to volatility. In June 2022, it suffered a 9% decline in value relative to the US dollar. In response to this fluctuation, the Tron DAO Reserve injected $650 million worth of USDC into USDD’s collateral reserve to stabilize its value.
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