TRON: everything you need to know about TRX

What is Tron?

TRON is a decentralized blockchain platform aiming to revolutionize the entertainment industry. Its goal is to create a free and global entertainment platform that allows users to easily and cost-effectively share digital media and content.

How does TRON work?

TRON is an open-source blockchain platform for smart contracts and decentralized apps (DApps). It is similar to Ethereum and initially started as an Ethereum token before transitioning to its own blockchain. While TRON has various objectives, its primary focus is on decentralizing the web.

TRON's main objective is to transform the entertainment industry. The platform aims to use blockchains for a content-sharing system, eliminating intermediaries such as YouTube and Amazon, which profit significantly from content. Instead, TRON seeks to connect content creators directly with users.

The Technology Behind TRX

The TRON network operates based on several principles, with decentralization being the first. All data on the blockchain is entirely open and not controlled by a central authority. Content creators receive TRX as a reward for offering their media.

Creators can also generate their own tokens on the TRON network and use them within their own DApps. Additionally, TRON is developing games on the TRON network, allowing players to directly reward creators when supporting a game.

Architecture of TRON

TRON employs a three-layered architecture consisting of a core layer, a storage layer, and an application layer. Here's how these three layers function:

• The core layer performs essential blockchain tasks, including transaction validation, account management, and smart contract execution. It uses a programming language originally developed for Ethereum.
• The storage layer is designed for data storage.
• The application layer is used by developers to build applications, with support for various applications as TRON supports smart contracts.

To validate transactions, TRON utilizes a Delegated Proof of Stake (DPoS) consensus mechanism, a variation of the standard Proof of Stake model. Users stake their tokens as collateral, similar to the typical Proof of Stake model. What "delegated" adds is the right to vote for "super representatives" who validate transactions, with these representatives being chosen every six hours.

Super representatives receive blocks of transactions to validate, earning a reward in a small, periodic percentage of TRX for each block.

Ambitious Goals

The TRON team has announced several long-term ambitions. For instance, the platform aims to become the most flexible blockchain for developers, with software that is compatible with Ethereum development software. Future collaborations with other blockchains are also on the horizon.

Additionally, TRON is venturing into DeFi (Decentralized Finance). Through the JUST Network, a branch of TRON, the platform already offers various financial services on the blockchain.

Benefits of TRON

What advantages of TRON make the platform attractive to investors and users?

• Building a decentralized entertainment platform that allows users to create and earn from media content without intermediaries.
• Focusing on various types of media, including video hosting, social networks, streaming, and more.
• Supporting a wide range of applications.
• Capable of handling over 2,000 transactions per second.
• Popularity among both investors and users and partnerships with well-known brands, including Samsung.

Drawbacks of TRON

What drawbacks of TRON should investors and users consider?

• Facing fierce competition from other blockchains like Cardano, EOS, and Polkadot.
• Still in an early development phase with numerous expansion plans for the coming years.
• TRON's price is known to react strongly to (negative) news about Bitcoin.
• Some perceive TRON as centralized, as approximately 50% of all TRX tokens are held in 10 wallets.

Who is the founder of TRON? 

The founder of TRON is Justin Sun, a controversial figure in the blockchain industry. While he was known for his ambition and entrepreneurial spirit in the development and especially the promotion of TRON, Sun became embroiled in controversy in 2023 due to allegations of misconduct.

In March 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Sun for alleged involvement in fraud, market manipulation, and misleading investors. These accusations cast a shadow over Sun's reputation and raise questions about his practices as a prominent figure in the crypto industry.

Price forecasts

In 2026 experts expect a minimal price of €0.5800 and a minimal price of €1.92 in 2031.