CoinMarketCap takes a deep dive into Tron, a decentralized layer-one blockchain ecosystem.
Tron (TRX) is a robust multi-purpose layer-one blockchain, supporting wallet clients and decentralized applications. Tron works with a delegated proof-of-stake (DPos) consensus mechanism, which guarantees supreme performance without compromising decentralization and censorship resistance. Tron was launched in June 2018 by its CEO and founder Justin Sun, a Chinese blockchain entrepreneur.
Through a modularized structure, Tron is able to achieve throughput of up to 2,000 transactions per second. The system is split into several core modules, which include the underlying network, data storage capabilities, the Tron Virtual Machine, and an application layer interface. The Tron blockchain is an entertainment and content-focused platform, which follows a six-phase roadmap stretching over 10 years:
- Exodus phase (until 2019): It saw the buildout of Tron as a peer-to-peer distribution, storage, and content platform, with a filesharing protocol built similar to that of IPFS.
- Odyssey phase (until July 2020): It introduced financial incentives and encouraged content creation to incentivize early adopters and spur community growth.
- Great Voyage phase (until August 2021): It launched TRON-native ICO capabilities, where creators can offer a stake in their work through branded tokens.
- Apollo Phase (until April 2023): It enables the issuance of personal tokens.
- Star Trek phase (until October 2025): it will bring decentralized gaming and a forecasting platform to Tron.
- Eternity phase (until October 2027): It will aim for further decentralization of the gaming industry through fundraising and monetization based on community growth.
At its completion, Tron will be a decentralized media and entertainment distribution platform, which leverages the strengths of blockchain technology to distribute content at a low cost.
How Does Tron Work?
The blockchain was built to streamline communications and easily integrate with several programming languages. It follows a three-layer structure, with a core layer, a storage layer, and an application layer integrated. Each of the layers is optimized for different functionalities.
The core layer secures the blockchain and adds new blocks to it by employing a delegated proof-of-stake consensus mechanism. It also manages accounts and processes smart contracts executed on Tron. The core layer runs with Solidity as its programming language, which was selected because of its compatibility with Ethereum and its ease of use for creating DApps.
The storage layer allows to store data within Tron’s blockchain. It is designed as a data storage system providing stability and security. The application layer is built to advance the effective interaction of software engineers within the Tron ecosystem. Decentralized applications run on top of the application layer. For instance, SunSwap, Tron’s biggest DEX, runs on Tron’s application layer. It allows users to stake TRX, swap it for different TRC-20 tokens, or provide liquidity on the exchange. Thanks to the use of Google Protocol Buffer standards, Tron easily integrates with other programming languages.
Furthermore, the Tron Virtual Machine, a fork of the Ethereum Virtual Machine (EVM), was created with the goal of resource minimization. It enables developers to easily access and build on Tron, while not charging TRX for executing operations. This reduces the costs of application development without compromising the security of the blockchain.
With the introduction of the so-called Tron 4.0 version in 2020, Tron introduced the TRONZ privacy protocol, which is powered by zk-SNARK technology. It provides decentralized transaction confirmation without sharing private data and provides minuscule transaction fees. In comparison to Ethereum, Tron can be up to 600 times cheaper when executing a transaction.
Third parties can verify transactions of any size on Tron. Furthermore, the transaction data is transparent on the Tron blockchain. With the introduction of Tron 4.0, Tron also sped up its throughput and block confirmation times, from an average of 57 seconds to just three seconds. This made Tron one of the fastest blockchains in the top 25 cryptocurrencies and set it on its way to becoming a content distribution powerhouse.
Unique Features of Tron
Tron stands out in several ways:
High Transaction Speed
Although Tron is not the fastest blockchain on the market, it is one of the fastest blockchains. With a transaction speed of up to 2,000 TPS, Tron achieves transaction finality of under three seconds, making it more user-friendly than blockchains like Ethereum or Bitcoin. Furthermore, the quick transaction finality lends itself to Tron’s primary use case of being an entertainment and content distribution platform.
Unique Use Case
Tron is a highly versatile blockchain and can be used for sending cryptocurrency, DeFi functionality, and swapping different tokens. However, its primary use case is the decentralized distribution of content and entertainment. That distinguishes Tron from rival blockchains and makes it a strong contender to be one of the winners of a potential multi-chain world.
Sound Development Roadmap
In contrast to other blockchains that often have a vague roadmap or none at all, Tron provides a detailed plan for the upcoming years. After successful completion of its initial development phases, Tron is now working on becoming the leading entertainment and content-hosting blockchain ecosystem. This makes Tron a very attractive proposition for the future.
Tron Tokenomics
The total supply of TRX is 100 billion. 15.75 billion TRX was issued to private sale investors and 40 billion TRX to ICO investors. The Tron Foundation received 34 billion TRX and Peiwo Huanle, the company of Justin Sun, 10 billion TRX.
Tron generates a block every three seconds. Block producers receive a reward of 32 TRX per block, with nodes receiving 16 TRX per block. That amounts to yearly inflation of 500 million TRX.
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