Tron FAQ :: What is Tron (TRX)

Launched at the peak of cryptocurrencies in 2017, Tron has since inspired a global group of investors and developers to understand how cryptocurrencies can change the internet.

More information on TRX's current value, trends and price history can be found on the Tron price page.

However, although the goal of creating a decentralized network using blockchain was common for projects of the time, TRON was different in that its ideas resonated even in the face of constant criticism of the technology.

For example, Tron was unusual among cryptocurrencies launched in 2017 in that it did not seek to advertise advances in cryptography or network design.

Instead, the core elements of Tron, such as decentralized applications, smart contracts, tokens, and Proof-of-Stake delegated consensus, were developed by other projects prior to its launch.

Tron has gone so far as to develop Ethereum (ETH) compatible technology components (which has sparked accusations of borrowing too many ideas from Ethereum).

Tron also diverged from its Asia-focused market development strategy and relied heavily on creator Justin Sun advertising and the translation of technical documentation into a wider range of languages than cryptocurrency projects typically do.

Tron rose to prominence in 2018 when the Tron Foundation, a non-profit organization that led the development of the project, acquired peer-to-peer pioneer BitTorrent.

Prior to this acquisition, BitTorrent tokens were launched on the Tron blockchain in 2019, allowing Tron to sell its new cryptocurrency to millions of existing users.

How does Tron work?

Initially created as an Ethereum-based token, Tron finally moved to its own network in 2018.

During this process, investors exchanged their Ethereum tokens for the Tron TRX cryptocurrency (the Ethereum tokens were subsequently destroyed).

General architecture

Like Ethereum (ETH), Tron uses a credential-based model, which means that cryptographic keys issued over its protocol can control access to the balance of TRX and TRX tokens.

The TRON blockchain exchanges this data through three levels

• Core Layer - instructions written in Java or Solidity (a language developed for Ethereum) are calculated and sent to the TRON virtual machine, which executes the logic.
• Application layer - used by developers to create software-compatible wallets and applications based on the TRX cryptocurrency.
• Storage layer - used to separate blockchain data (historical records of the blockchain) and blockchain state data (storage of the state of smart contracts).

Delegated proof of stake

To achieve consensus on the ledger, Tron uses a system of 27 "super representatives" who take turns verifying transactions and managing the history of the system.

Superdelegates are elected every six hours and, once elected, are empowered to collect new TRX generated by the protocol.

Blocks are added to the blockchain every three seconds, and anyone who creates a valid block gets 32 TRX for their efforts. A total of 336,384,000 TRX is paid out per year.

In addition to super agents, users can manage three types of nodes on the TRON blockchain: witness nodes, full nodes, and solidity nodes. Witness nodes provide blocks and vote on protocol decisions, while full nodes broadcast transactions and blocks.

Strength nodes synchronize blocks from full nodes and provide an API.

For more information about block generation and network superagents, see Block Generation.

Staking TRX on Tron

In order to vote for a super agent, TRON users need a network resource called the "Power of TRON".

Users receive one TRON Power for each TRX they decide to "lock" on an account that is unable to use the corresponding cryptocurrency (when the cryptocurrency is unfrozen, the user loses TRON Power and the ability to vote).

Tron Power cannot be traded like TRX or other tokens issued on the Tron blockchain.

Essentially, this process is similar to staking on blockchains like Tezos and Cosmos, where users are rewarded with funds on the blockchain.

Why use TRX?

To use applications on the TRON network, you must purchase TRX. This means that you need to purchase TRX if you want to use Tron based games and services.

Having TRX is also a prerequisite to participate in the Tron consensus system, meaning you need TRX if you want to stake coins or vote on how the protocol will work.

Depending on the investment policy, investors can also add TRX to their portfolio, as the TRX platform allows users to create their own applications and tokens, and investors who strongly believe in these blockchain options are advised to familiarize themselves with TRON.

Investors can also appreciate this cryptocurrency, as it allows you to earn passive income through staking and helps offset the risk of owning or holding assets in a portfolio.

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