What is Tron (TRX)?
Tron is the latest cryptocurrency that is revolutionizing the world of digital assets. With a current market cap of over $4 billion and a 24-hour trading volume of over $1.5 billion, Tron is undoubtedly one of the hottest new coins in town.
Tron is a decentralized platform for content delivery and sharing. Their aim? To make the internet accessible to everyone. The creator wants to eliminate the middleman and promote free and fair content distribution. The Tron network allows users to send, receive, store digital assets, and utilize smart contracts.
The Tron network has been described as a “Decentralized Internet.” It means content creators and consumers can interact through the blockchain. This cutting-edge technology theoretically makes the internet more open and equal for everyone.
Tron and the Team Behind It’s Technology
Tron was started by Justin Sun, the former chief representative for Ripple in Greater China, and was also the founder and CEO of Peiwo App. He was named one of Forbes China’s 30 under 30 in 2016 and 2017. Sun was also chosen by Barron’s Asia as a top 100 Fintech leader. He now uses his knowledge and experience to create an innovative global digital entertainment ecosystem through Tron.
The Key Technology Behind Tron
Before you buy tron, it’s best to understand its technology. Tron was forked from ETH, which means that the core technology behind it is Ethereum. The Ethereum Virtual Machine (EVM) is the foundation of Tron’s blockchain technology.
The Ethereum Virtual Machine is a Turing complete programming language. This means it can be used to create smart contracts and build decentralized applications. The Ethereum network is unstoppable because of the EVM and its smart contracts, which are self-executing and self-enforcing.
Tron’s core technology has been compared to Steam’s gaming platform. While Steam is a centralized platform, Tron’s innovative technology is decentralized, making it almost impossible to shut down or control.
The Ethereum network was started one year after Bitcoin and has become the most potent blockchain in the world. Ethereum has become so popular because of its smart contracts and decentralized applications.
Although Steam is a centralized platform, it currently has over 40 million users and generates revenue from selling games, computer hardware, and merchandise. The Ethereum network can do the same for digital assets and smart contracts.
However, the Ethereum network is slowing down because of the massive traffic volume. This makes it challenging to use for everyday users, which is more reason to buy tron. It is through such weaknesses that Tron and its blockchain come into play. Tron’s technology and architecture are built specifically to overcome Ethereum’s limitations.
How Does Tron Work?
Tron’s primary goal is to migrate the internet from centralized systems (such as Facebook and Google) to decentralized systems. The Tron network aims to create a more equal, open, and free content distribution system.
The Tron Network is composed of three main components:
- The Tron Virtual Machine (TVM) – A fully modular EVM-like virtual machine that will be the foundation for its smart contracts. TVM will be highly efficient for parallel execution, high transaction throughput, and high reliability.
- Tron Protocol – A protocol designed and optimized for one-to-one content distribution. Tron will have a content distribution network that is decentralized, peer-to-peer, and scalable.
- Tron Token (TRX) – An ERC20 compatible utility token with innovative contract capabilities.
- Tron Power (TP) – TP measures how much you contribute to the network’s overall health. TP can be earned by buying and holding TRX tokens or voting for super representative candidates. TRX holders earn TP by locking their TRX tokens into a smart contract to vote for said representatives.
Can I Make Passive Income From Tron?
Investing in Tron is like buying shares of a company. If the company performs well, so will its stock value. However, there are no dividends or profit sharing with Tron, so you’ll have to rely on the program’s success.
How To Invest in Tron
It’s easy to invest in Tron. You can purchase it from any cryptocurrency exchange that lists Tron, such as Binance and Huobi. Once you have your TRX tokens, you can transfer them to the Tron-compatible wallets, such as the TronLink desktop wallet or the “MyEtherWallet” (MEW) web wallet.
Are Their Risks Involved in Investing in Tron?
Tron’s technology is entirely new. It was launched in June 2018 and has had minimal publicity compared to other coins. This means that you will be paying a premium for using Tron, which ultimately increases the risk involved in investing. It also means you could lose your investment if it fails to gain consistency. As a result, you’ll have to rely on the code’s success and research before investing. At the same time, investing in Tron is like investing in other digital currencies like bitcoin and Ethereum, where you must take calculated risks. Also, you will make considerable returns if you rely on an appropriate investment strategy.
Is It Profitable?
So far, the Tron network has successfully met its goals and made the internet more open and accessible. However, experts believe they need more time to accomplish their vision of decentralizing the internet.
Tron is one of the most ambitious cryptocurrency projects to date. Its goal is challenging and could be a game changer if successful. With cutting-edge technology, an incredible team of young, enthusiastic developers, and strong support from the Tron community and investors, Tron has a lot of potentials to become one of the most powerful and successful cryptocurrencies in years to come.