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What is Tron (TRX) and how it works
The Tron project was launched back in 2017, and in just two years this cryptocurrency has entered the world's top 10 by capitalization. What is Tron, what are its advantages, and how can we benefit from it?
Story of the Tron project
The founder of the Tron project is a young entrepreneur from China, Justin Sun, a protégé of Jack Ma, the founder of AliBaba Group. The Tron project's idea is to make the Internet in general and the industry of online entertainment in particular free of the influence of corporations and intermediaries.
🎙️ Today, the creators of entertainment and other content, be it videos, music, games, apps, struggle with unfair copyright infringement. Their works can be copied and distributed without bringing a penny to the legal owner and creator.
🤑 At the same time, big players of the Internet market, such as social networks and content aggregators, enrich themselves fabulously by selling content or using it to attract and retain users. The royalties are not commensurate with the profits that corporations make.
Justin Sun suggested creating an environment in which content creators can share content with consumers directly, receiving fair compensation without intermediaries. The Tron blockchain made it possible to launch decentralized applications (DApps) and use them to monetize the created content. Full transparency, the P2P (peer to peer) principle, and the operation of smart contracts (self-executing programs) ensured the trust of users and content-makers in the new environment. At the same time, both sides benefited: content consumers received a significant reduction in the cost of products due to the elimination of the intermediary markup, and creators increased their income since there was no need to share the profit with intermediaries any more.
One unit of Tron cryptocurrency is Tronix (TRX). The cryptocurrency was originally launched as an ERC-20 standard token on the Ethereum blockchain, but later migrated to its own blockchain.
Benefits of the Tron blockchain
It could seem to you that the Ethereum blockchain, which has been working since 2015, already has similar functionality. It also allows you to create and run DApps and smart contracts, deploy your own projects, and use P2P technology. However, the new blockchain has incredible advantages:
▪️ Tron has a throughput of 2,000 transactions per second (at the same time, the Ethereum blockchain has a throughput of only 20-45 transactions per second).
▪️ There are no transaction fees if certain conditions are met. You can transfer the amount of TRX equivalent to a million dollars anywhere in the world, and you won't have to pay any commissions.
▪️ A more advanced DPoS (Delegated Proof of Stake) consensus. Instead of PoW (Proof of Work), as used in bitcoin and ethereum blockchains, here the right to validate transactions arises for users who have a certain amount of TRX in their accounts. And the prefix Delegated means that transactions are confirmed by selected nodes to which the community has delegated this right. In the Tron network, 27 super-representatives are elected every 6 hours to perform this task.
▪️ TRX holders can participate in project management through a decentralized autonomous organization (DAO). In simple words, participants with a certain amount of TRX in their accounts can vote for a particular series of smart contracts that will determine the strategy for the network as a whole.
Why more and more projects and platforms are moving to Tron blockchain
Today, Tron is of particular interest to developers of DApps, because the huge bandwidth of the network, coupled with free transactions, gives a huge scope for creativity. Many projects originally created and running on the popular and well-researched Ethereum blockchain face the problem of scalability when the number of transactions and/or the amount of funds being transferred grows. One of the possible solutions is to move to the Tron blockchain, where decentralized applications and smart contracts with more functionality can be launched without worrying about time-outs or transaction fees driving away potential users.
For example, the FORSAGE Community faced the need to scale as it grew explosively. The solution was to launch all three existing FORSAGE matrices (x3, x4, and xGold) on the Tron blockchain in addition to Ethereum blockchain. Today, both versions of FORSAGE on two blockchains exist in parallel.
How to buy TRX
Today, TRX cryptocurrency is offered for purchase on all leading cryptocurrency exchanges. To buy it, you need the necessary amount of fiat money or cryptocurrency, depending on what is accepted for payment by the service you’ve chosen, and a cryptocurrency wallet that supports receiving and storing TRX.
Now, as you learned the basics about the essence of Tron and TRX, it’s time to put your knowledge into practice. Watch our Ultimate video guide to FORSAGE.io on the Tron Blockchain to learn how to get started. At the price of one lunch at your local fastfood place, you can make a first step in the crypto world and become a part of a Global Community of FORSAGE users.