Long story short, it is a blockchain-based decentralized platform whose main goal is the efficient distribution of unique digital content. This is achieved through the use of distributed information storage technologies, smart contracts and Tronix's own tokens (TRX).
The main task of the project is considered to be the elimination of intermediaries in the process of sharing unique content. What the traditional situation looks like. There is a large intermediary company. It takes money both from the authors who display their content with it, and from users who want to familiarize themselves with this content. Plus monetization, plus ad interest, plus various fees and transaction costs. So, only a small part of what users want to pay them reaches the authors.
TRON project is a decentralized platform. Authors can contact users directly. This increases the speed of work, gives more effective feedback, and reduces transaction losses. It is also beneficial for users - less annoying ads, easier to reward selected creators.
The internal token of the project, Tronix (TRX), is used as a reward. It can be freely exchanged for other cryptocurrencies, and in the long term - for fiat. The project also has a rather interesting "tip" system. The user is offered a free or very cheap "probe". If he gets a high mark, then for an additional fee you can get acquainted with the rest of the author's work.
General information about the project
TRON was launched in 2017 - during the famous "cryptocurrency" boom. But unlike other undertakings of that time, he did not offer a "replacement for bitcoin" or "a revolutionary new approach to crypt", but used technologies that had already been tested and tested in business. Therefore, he was not particularly affected by the "bursting bubble".
The company is based in Singapore, officially operates and is not a commercial enterprise. This means that its work is regulated by the Company Law of Singapore (Singapore corporate laws) and official regulators. However, given the rather loyal attitude of the authorities of this country to cryptocurrencies, one does not have to face strong restrictions.
How does it all work?
Initially, the project did not have its own blockchain, but was limited to a web interface that works as a file sharing service. Even tokens were originally issued using ERC-20 technology. But at the next stages, the situation changed, the project acquired its own distributed network, and then the tokens were “untied” from the Ethereum ecosystem.
However, the new blockchain was still based on the solutions used in Ethereum, which caused the developers to have some problems with copyright compliance. In any case, the system has several levels of work:
- Core Layer - instructions written in Java or Solidity (Ethereum's own language) are processed there, and then are sent for execution to virtual machines.
- Application Layer - it is on this layer that developers create their own applications that are compatible with TRX tokens and project software.
- Storage Layer - segmented information about the state of the blockchain and a history record is stored here.
An important point that determines the operation of any decentralized network is the consensus algorithms. TRON uses a PoS mechanism - proof of stake. Not classic, much more advanced. In order to improve performance, it was decided to reduce the limit on the number of validators, or as they are called here - “super-representatives”, to 27. They are elected every 6 hours as a result of a general vote. After that, they must participate in the validation of new added blocks every 3 seconds. Whoever is directly responsible for this receives 32 TRX for the work.
To be able to become a "super representative" or vote for them, you need to block a certain amount of TRX on your account, for which users receive utility tokens called "Tron Power". You cannot trade them - they are exclusively for internal use. Then - everything is as with the usual mechanisms of proof of stake. Moreover, the ability to "delegate" Tron Power to selected representatives.
There are also other types of nodes, in addition to "super-representatives", which are able to influence the operation of the network: Full (broadcast transactions into blocks), witness nodes (offer information to be added to the block and vote for changes) and solidarity nodes (synchronize information between different network participants).
The fact that from December 2019 to January 2020 the project increased its capitalization by 2000 percent says a lot. At the very least, that investors see great prospects in it. They are as follows:
- This is a truly content-oriented project that offers new and much more beneficial interaction formats for authors and users.
- High degree of decentralization. This means that third-party influences on the state of the network and the price of the token are highly limited. That is required for effective blockchain projects.
- Utility. TRX tokens are actually used. Albeit as a "tip" for authors or in the form of payment for digital content, but they are used. Therefore, they have a more stable price.
- P2P payment system. That is a peer-to-peer and decentralized network. There are no intermediaries, so much less commission and better speed of work.
- Trustworthy team. We will dwell on this moment in more detail.
The founder and CEO of the project is Justin Sun. A person with an excellent track record - he created the quite popular (10 million active users) Peiwo application for online streaming; he was twice included in the Forbes list in the category “Outstanding Personalities of Asia Under 30”; he worked as an Asian representative for Ripple; and most importantly, he is the protégé of Jack Ma, the billionaire and founder of the Alibaba group. And yes, Jack Ma is actively supporting Justin Sun with both money and technical resources. In addition, Feng Li (a former Ripple consultant and active investor in Coinbase) and Tim Berners-Lee (the creator of the Internet) work for the company.
There are practically no significant flaws in the project. But there are several unpleasant moments that reduce its value in the eyes of investors.
The first is the ability to use TRX for money laundering and tax evasion. A classic problem for most cryptocurrencies. This also includes trading insider information, since TRON's security systems do not allow us to properly track the identities of transaction participants.
The second is negative rumors. Sometimes directly related to the team. Either someone launches misinformation that Justin Sun himself is going to sell tokens worth millions of dollars, or accusations of "theft" of Ethereum intellectual property will surface. Then there was a rumor that in the next update (and there were already quite a lot of them) there may be security problems... All of this, of course, is not confirmed, but investors are forced to react even to rumors.
No one doubts that the TRON project will actively develop further. The question is how he will do it - separately or as part of the Alibaba group. In any case, the chosen niche, effective and repeatedly proven technological solutions, as well as support from large companies, guarantee the further growth of the project and increase the value of the TRX token. This is also facilitated by the relatively clear regulation of cryptocurrencies and tokens in Singapore.
CryptoeconomicsAuthor: EXBASE.IO | Jan 25, 2021
CryptoeconomicsAuthor: EXBASE.IO | Dec 01, 2020
NewsAuthor: EXBASE.IO | Sep 03, 2021