Ethereum (ETH) vs. Tron (TRX)

In this piece, we will be comparing Ethereum to Tron.

History

The best place to start when researching a digital asset is its history. This can help you figure out where your money will be going if you decide to invest.

Ethereum (ETH)

The first time the world would hear about Ethereum would be in November 2013. Vitalik Buterin, who is recognized as the principal founder of the platform, would publish the whitepaper explaining the Ethereum blockchain at this time.

Buterin was hardly able to create a decentralized network that sought to be a “world computer” by himself, though. He had many other co-founders, such as Mihai Alisie, Joseph Lubin, Jeffrey Wilcke, Anthony Di Lorio, Amir Chetrit, Charles Hoskinson, and Gavin Wood.

The project would only become more widely known by the public in 2014. This is when Buterin explained the concept of Ethereum at a Bitcoin conference in Miami, Florida. The Ethereum blockchain would only go live in July 2015, but the public could buy ETH tokens from late 2014.

This meant that while consumers could purchase tokens, they would be unable to use them, move them, or sell them until the blockchain was live.

Tron (TRX)

Tron is one of many decentralized blockchain networks that came about due to the rise of Bitcoin and Ethereum. However, its aims are very different from that of its competitors. The Tron network was founded by a non-profit organization from Singapore called the Tron Foundation back in 2017.

Justin Sun, the CEO of BitTorrent, was the driving force behind the creation of the Tron blockchain. He is now the CEO of Tron, too. While Tron was mainly marketed in Asia, it soon gained global recognition, as the platform had over 50 million accounts in August 2021.

The Tron network launched its mainnet in May 2018, and in July 2018, the Tron ecosystem integrated the Bittorrent File System.

What It Does, And Why It Was Created

Not all cryptocurrencies were designed to be investments, so it is crucial to understand what they do and why they were created.

Ethereum (ETH)

Vitalik Buterin first heard about Bitcoin in 2011, when he was only 17 years old. Although he first dismissed it, he liked that the decentralized network took power away from banks and governments.

This is why Ethereum is a decentralized platform that can act as a payment system. However, Ethereum is far from a one-trick pony. It can also store data and run decentralized applications.

Ethereum has established a peer-to-peer network to execute and verify application code (smart contracts).

Ethereum, at first, made use of a proof-of-work consensus mechanism like Bitcoin. It recently switched to a proof-of-stake consensus mechanism, which is more environmentally friendly.

Tron (TRX)

While Tron and Ethereum have similar goals, Tron is different from Ethereum because it is an ecosystem for content producers and digital content. Tron’s network provides these content producers with a platform that allows clients to pay them directly.

There is also zero platform fee, which makes this digital content cheaper and more accessible for average consumers. These consumers can pay creators directly using TRX to access their applications or content. These content creators also do not need to pay any transaction fees to Tron, as transactions are free on the platform.

Tron makes use of its own unique consensus mechanism, which is called delegated proof-of-stake. The blockchain ledger that Tron makes use of records and traces all transactions made using TRX.

While Tron is considered a decentralized platform, it has a relatively low level of decentralization compared to other cryptocurrencies.

Price History

Consideration of a cryptocurrency’s price history is essential if you plan to invest. This will tell you how much its price has fluctuated and whether it will be a good investment to make or not.

Ethereum (ETH)

Back in 2014, when Ethereum’s ETH tokens first went on sale, they weren’t worth all that much, as you could purchase a single token for $0.31. In only two years, the market value of an ETH token would increase a hundredfold, as in early 2016, one token was worth $31.

The next large spike in market value the token experienced would come in 2018 when the rest of the crypto industry boomed. This was the ETH token’s first major milestone, as the market value of a token was up at $1,000. Not long after this, the crypto industry would begin to decline once again.

This is why Ethereum tokens did not increase much in value until 2021. This is when the crypto industry would reach its peak. The ETH token was one of the main tokens to benefit from this boom, as by mid-2021, one ETH token was worth $4,038.

By the end of 2021, ETH tokens would increase in value and reach their ultimate peak of $4,701. Unfortunately, 2022 saw a considerable decline in the crypto industry, which is why one ETH token is worth $1,283.42 in December 2022.

Tron (TRX)

Tron tokens have never been worth all that much, and their value hasn’t increased much since they first became available to the public. In 2017, one TRX token was worth less than a single cent.

This would continue to be the case until 2017 when the value of a TRX token would increase exponentially, as it would cross the $0.01 threshold and continue trending upwards.

It would reach its ultimate value peak in January 2018, when one TRX token was worth $0.17. The token would then plummet in value and be worth less than $0.10 until 2021 when it would spike in value again. One TRX token was worth $0.15 in mid-2018 as a result.

Its value, once again, plummeted, which is why one TRX token is worth $0.05 in December 2022.

 

Market Cap

Market capitalization is another important factor to consider as it relates to the total value of a cryptocurrency.

Ethereum (ETH)

Ethereum currently has a market cap of $156.827B – the second-highest market cap of any digital asset on the market.

Tron (TRX)

Tron’s current market cap is $5.038B. Tron has the 15th highest market cap of any digital asset on the market.

 

Similarities

• Both Tron and Ethereum are decentralized blockchain networks.
• Both Tron and Ethereum make use of decentralized finance and applications.

 

Differences

• Tron has a transaction speed of 15 seconds, while Ethereum’s transaction speed is much slower and can take up to 6 minutes.
• Ethereum is more decentralized and secure than Tron.
• Ethereum is much more valuable than Tron.
• Ethereum uses a proof-of-stake consensus mechanism, while Tron makes use of a delegated proof-of-stake system.
• Tron does not have any transaction fees, while Ethereum does have transaction fees.
• Tron has better scalability than Ethereum.

 

Risks

The biggest risk you will face by investing in any cryptocurrency is the fact that you could lose your investment at a moment’s notice. However, there are other risks that apply to specific digital assets.

Ethereum (ETH)

The biggest risk that the Ethereum community faces is centralization, as it has moved to the proof-of-stake consensus mechanism. 60% of the stake belongs to four major parties. This means that those parties will have the biggest say in the platform’s decisions.

Tron (TRX)

While crypto is always a risky investment, Tron is one of the safest digital assets to invest in, as the price does not fluctuate all that much.

The biggest risk Tron faces is being overtaken by its competitors.

 

Where You Can Buy It

Ethereum (ETH)

Ethereum ETH tokens can easily be purchased from:

• Coinbase
• Kraken
• Bitstamp
• Gemini
• Binance
• Bitfinex
• HTX
• Coinmama
• Crypto.com
• KuCoin
• eToro

Tron (TRX)

• Coinbase
• Coinmama
• Kraken
• Binance
• Bitfinex
• Bitpanda
• Cex.io

 

How Can You Exchange ETH For TRX

You can exchange ETH tokens using any one of the crypto exchanges listed above that support both tokens.

 

Future Plans

Ethereum (ETH)

As time goes on, Ethereum continues to develop further. This means that it will likely continue to increase in value in the years to come.

Some financial analysts have even predicted that ETH tokens will once again be worth over $4,000 in the future.

Tron (TRX)

While Tron TRX tokens aren’t worth all that much at the moment, the platform is also continuing to develop. This is why some analysts expect Tron to steadily increase in value in the next few years.

Sources

https://cointelegraph.com/ethereum-for-beginners/history-of-eth-the-rise-of-the-ethereum-blockchain

https://messari.io/asset/tron/profile

https://www.investopedia.com/tech/what-tron-trx/

https://trading-education.com/better-buy-ethereum-vs-tron

https://www.cnbc.com/2021/05/18/why-ethereum-founder-vitalik-buterin-got-into-crypto-bitcoin.html

https://coinmarketcap.com/currencies/tron/

https://trading-education.com/is-tron-a-good-investment-and-should-i-invest-in-trx