Getting to Know Tron: How It Works, Benefits, Price and How to Buy
Tron is transforming the way content reaches the audience. This decentralised platform facilitates cost-effective sharing of digital content on their in-built entertainment applications using the peer-to-peer network. Tron, therefore, removes the middleman and helps content creators sell their work directly to the consumers.
Tron is working towards fulfilling its motto, “Decentralise the Web” and is planning to lead Web 3.0, which will help people to use the internet as a decentralised open network. Read on to know how the Tron blockchain works and how you can buy its native cryptocurrency, TRX.
What is Tron?
Tron is a decentralised, open-source blockchain platform that has its own native cryptocurrency called Tronix or TRX. Tron can run smart contracts, and it can be used to build decentralised apps (dApps). It has a lot of similarities with Ethereum, as it was an Ethereum-based token before building its own blockchain.
Tron aims to help share digital content more economically by hosting a worldwide entertainment system. The software developers use the Solidity programming language to host decentralised entertainment platforms on the Tron network. Users of the entertainment platforms can pay the content creators using the TRX coins. No transaction fee is charged from the content creators in return. Additionally, TRX can be stored in a mobile, desktop or hardware wallet.
Who Created Tron?
Tron was launched in early 2017 by entrepreneur Sun Yuchen, also known as Justin Sun. In the same year, the Tron foundation was established, which is responsible for overseeing and supervising the Tron network. It is a non-profit organisation located in Singapore.
Sun is presently the CEO of Tron and BitTorrent, the file-sharing software. Tron was initially created as an Ethereum-based ERC-20 token, but in 2018, the network switched to its own blockchain.
Tron was created to challenge digital streaming giants like Amazon and Netflix. It aims to remove the corporate companies between digital content creators and viewers. It was initially marketed in Asia, but it currently has a global presence.
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How Does Tron Work?
The TRON Virtual Machine (TVM) is responsible for maintaining the Tron ecosystem, which is very similar to the Ethereum Virtual Machine. This machine helps in providing an effective blockchain system. The TVM helps in executing smart contracts. It has a three-layer architecture that includes the storage, core and application layers.
The consensus mechanism used by Tron is delegated proof-of-stake. Using this technique, the users utilise their currencies to vote for the delegates, who take important decisions to operate the entire network.
Super representatives keep track of the transaction history and validate transactions. They receive TRX coins in exchange for their services. Every three seconds, the blockchain acquires a new block. Those who add blocks get a reward of 32 TRX coins for their services. Additionally, smart contracts of Tron are written in Solidity and other advanced languages.
What are the Benefits of Tron?
There are several benefits of the Tron network and its native cryptocurrency:
- The network lets users vote and select their super representative by staking their TRX
- Helps the content creators receive payment for the content or information they produce
- The transaction fee on Tron’s decentralised platform is very low when compared to other mainstream digital platforms
- Tron supports 2000 transactions per second, which is much more in comparison to other cryptocurrencies
- Global buyers and sellers can trade TRX coins 24×7
Is Tron a Good Investment?
Tron is one of the most reliable cryptocurrencies for those who want an inexpensive crypto trading option. It also has maintained a growing market cap over the years. This is a great platform for digital content creators as it is cost-effective. Tron is decentralised, which also helps in the transaction of web-based payment without the interference of any middleman.
Tron can turn out to be a great investment because of the following reasons:
- It offers zero transaction fees as well as a much higher transaction per second than currencies like Bitcoin or Ethereum.
- Simply holding or staking TRX helps users earn money; the more they stake, the more TRX they earn.
- Users can store their Tron crypto token in hardware, desktop or mobile wallets.
However, just like any other cryptocurrency, Tron is a very high-risk investment. Investors are advised to do thorough market research and study the price fluctuations before investing in TRX.
How to Buy Tron?
Here are the steps you can follow to buy Tron crypto:
Step 1: Open an Online Account
Before buying any form of crypto, you need to open an online account with a cryptocurrency exchange or a broker
Step 2: Get a wallet
After you open an account, you require a wallet to store your cryptocurrency. Often exchanges and brokers permit you to store your coins in their custodial wallet, but that is not as safe as storing your coins in your own wallet.
Step 3: Search for ‘Tron’ crypto on the exchange platform
Search for ‘Tron’ in the platform’s search bar. Enter the amount of TRX tokens you wish to purchase. Under “Pairs”, you can find out what second currency you can use to buy Tron
Step 4: Make your purchase
Confirm the purchase after selecting the second cryptocurrency. After purchasing your required amount of TRX, the coins will be transferred to the platform’s custodial wallet
Price Prediction of TRON for 2022
According to crypto analysts, the minimum cost of Tron will be around $0.093 by the end of 2022, and the maximum level Tron can reach is $0.10. The average would be something around $0.095 by year-end. The potential Return on Investment (ROI) would be nearly 47%. In the upcoming years, the potential ROI of Tron may increase manifold. This means that investing in Tron might be profitable for you.
Also Read: What is ApeCoin (APE) and Should You Consider Investing in it?
Final Word
Tron is gaining popularity day by day in the cryptocurrency sector. It has a huge potential for earning profits according to the stats available. It is giving tough competition to the platforms like Netflix and Amazon. However, the future success of this platform depends on the quality of the programs it presents to the users. Investing in Tron is highly risky as well as speculative. Investors must be very careful while opting for this.
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FAQs on Tron
Ans: A Tron transaction can be completed in just 3 seconds. However, the blocks can be changed until new blocks are added to them. The requirements for irreversibility are 20 levels of blocks and 20 confirmations.
Ans: Yes, Tron is legal in India, and users can buy and sell it using various crypto exchanges like BuyUcoin, Zebpay, WaxirX etc.
Ans: Initially, Tron was an Ethereum-based token. However, it came up with its own network in 2018. The process included investors trading their Ethereum tokens for Tron’s TRX cryptocurrency.
Ans: Yes, Tron transactions are traceable. Similar to any digital currency transaction, transactions of TRX coins occur on a public ledger. This public ledger holds details of all the previous transactions done to date.
Ans: The price of Tron is low because the circulating supply is high. TRX has a total supply of just over 100 billion tokens, 71.6 billion of which are in circulation. This is the reason behind the low price of Tron crypto.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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