What is Tron (TRX) How it Works & Where To Buy It?

Tron (TRX) is an innovative and popular blockchain that accommodates the deployment of decentralized applications. The TRX token is the native cryptocurrency that is utilized to interact with DApps in the Tron ecosystem and pay transaction fees.

Tron was founded by Justin Sun in 2014 and was initially called Tronix. It’s currently the 26th largest cryptocurrency in the world by market capitalization.

 

How Tron (TRX) Works

The Tron blockchain is a decentralized blockchain that predominantly caters to content creators and DApp developers.

Content creators are incentivized with TRX tokens for the content they create. The Tron Foundation acquired BitTorrent in 2018 – the largest file-sharing platform in the world.

Tron operates using a delegated proof-of-stake mechanism whereby super representatives are responsible for validating transactions.

Super representatives are continuously selected every six hours, ensuring a fair and decentralized network.

Developers can also create their own customized tokens, which they can deploy on the Tron network. These tokens can have functionality within DApps deployed in the Tron ecosystem. DApps benefit from the security and efficiency of the Tron network.

The Tron blockchain technology is unique in that it incorporates the innovative Tron Virtual Machine – similar to Ethereum blockchain’s Ethereum Virtual Machine.

Tron’s blockchain projects include crypto sectors such as blockchain gaming and metaverse projects.

Tron tokens as well as other digital assets created on the Tron network can be used to facilitate payments and other interactions within the ecosystem – as well as money transfers.

The Tron whitepaper has a more in-depth description of the project’s aims and the functionality of the blockchain project.

 

What Is Tron (TRX) Used For?

TRX tokens power the Tron blockchain and the DApps deployed on it. Similarly, the Ethereum blockchain is powered by its native cryptocurrency ETH.

The Tron protocol aims to provide developers and users with a fast, affordable, and efficient network. Essentially, Tron DApps benefit from a network that can process more than 2,000 transactions per second and provide secure data transfers.

Virtually any user and developer can tap into a scalable, efficient, and extremely affordable network – this is Tron power.

The Tron wallet is used to store TRX tokens and provides a seamless way to interact with the ecosystem.

Tron founder Justin Sun has also confirmed that developers continue to build a new utility for the network and users – in an endeavor to become among the most reputable blockchains in the crypto space.

 

Where To Buy Tron (TRX) Tokens

Tron (TRX) has become one of the most notable cryptocurrency projects in the space and has amassed a market cap of more than $6 billion.

TRX tokens are commonly available and frequently traded on most centralized crypto exchanges. Before you’re able to purchase TRX, you’ll need to deposit fiat money onto an exchange, and sequentially TRX tokens will be credited to your TRX digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store TRX tokens.

Five of the most popular crypto exchanges are:

1. Binance
2. Coinbase
3. KuCoin
4. HTX
5. Crypto.com

 

All of the above exchanges allow users to buy, sell, transfer and store TRX tokens in a digital wallet on the exchange. You can use your debit or credit card to purchase TRX tokens on centralized exchanges.

If you intend on transferring your TRX tokens to a wallet off of the exchange – you can choose to send them to a wallet such as Tron Wallet.

You can connect your wallet with DApps in the Tron ecosystem, which will allow you to engage in staking, yield farming, and other DeFi applications.

How long has Tron (TRX) existed?

Tronix was initially founded in 2014 – the project was rebranded to Tron in 2017. After an ICO that raisedmore than $70 million, TRX was launched for trading on crypto exchanges in 2018.

Tron MainNet went live in 2018 after a lot of development was put in to make Tron work exactly as was promised to the community. Since its launching it has risen in popularity, reaching an all-time high of $0.30.

Recently it has seen drastic price depreciation – much like most projects do when there’s bearish sentiment in the market.

What’s controversial about Tron (TRX)?

When researching various cryptocurrencies, it’s important to consider the controversies surrounding them. Like most cryptocurrency projects, Tron has had its fair share of controversy.

Let’s take a look at the top two controversies surrounding Tron (TRX):

• Justin Sun Escaped China Right Before The Crypto Ban – Justin Sun is a rather controversial figure in the crypto space. Since purchasing BitTorrent, he has grown to become an influential figure in the cryptocurrency industry – but what about before that?

  Sun managed to flee China exactly a day before the government imposed a ban on ICOs (initial coin offerings). Some call this luck, others call it criminal behavior. Sun has been blasted by media companies for his tactics – especially the Tron ICO in 2017, where he narrowly escaped from Chinese authorities.

• Sun Promised To Give Away $20M And a Tesla – In 2019, to celebrate the ‘success’ of BitTorrent, Justin Sun announced he’d be giving away $20 million and a Tesla. Sun didn’t follow through on either of these promises and, once again, he was slammed in the media for being a scammer.

 

How many Tron (TRX) tokens are there?

At the time of writing, TRX has a circulating supply of 101.65 billion TRX tokens.

The total supply of TRX is 101.65 billion.

Can Tron (TRX) be mined?

Tron (TRX) is not a mineable cryptocurrency. Tron utilizes a proof-of-stake mechanism which makes it different from mineable coins like Bitcoin – which uses a proof-of-work consensus algorithm.

When the team created Tron, they envisioned a cryptocurrency that wouldn’t be dependent on miners to maintain decentralization – the Tron platform. Instead, its own blockchain runs on a delegated proof-of-stake mechanism.

However, individuals can earn rewards by engaging in decentralized applications that offer staking, yield farming, and liquidity.

Some centralized exchanges also offer minimum APY (Annual Percentage Yield) if individuals stake their TRX tokens for a certain duration.

What is the market cap of Tron (TRX)?

The market cap of Tron (TRX) is:

Tron (TRX) market cap = total amount of coins in circulation x current market price of TRX

Tron (TRX) Market Cap = 19,036,206.25 TRX x $0.062 = $6.3 billion (26th largest market cap)

At its all-time high, Tron’s market cap was significantly higher, but it has fallen out of the top 20 largest cryptocurrencies in the world list since its price drop.

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Tron (TRX)

Tron has a solid team and fully functioning blockchain used by hundreds of thousands of people – however, many projects have achieved the same feat.

Tron (TRX) experienced a significant peak to $0.30 and continued a downward progression afterward, reaching lows of only a few cents.

This sparked panic and disbelief in the project from multiple community members – many wondering where to next?

Although thousands of loyal Tron supporters remain hopeful of a prolific return to its glory days, many have turned to projects such as VeChain.

An innovative project that most call an undervalued gem. The project boasts similar aims but has a much more elaborate ecosystem as well as a lower token supply.

Moreso, the project is also based in China but is working alongside the government, as opposed to fleeing from them.

What are the future plans for Tron (TRX)?

The future plans for Tron are to expand its ecosystem and increase user adoption. The TRX token is frequently traded on most major platforms, and the Tron blockchain continues to attract many developers.

The constant that is necessary for every cryptocurrency project is continued adoption, adding utility, and expanding into innovative sectors with real-world use cases. Going forward, Tron looks likely to position itself in the gaming and media sectors in the crypto space.

Sun has avidly announced that the Tron Foundation will continue to build and keep adding value to its project and ecosystem.

Pros and Cons of Tron Network, Tron Blockchain and TRX Token

Pros:

• Processes 2,000 Transactions Per Second – Tron is capable of processing around 2,000 transactions per second, and the network is notorious for being among the cheapest for making payments. Transaction fees on the Tron network are significantly lower than on the Ethereum network.
• Well Positioned In Social Networks – Tron is uniquely positioned to cater to users utilizing social networks and media sharing. The implementation of smart contracts, low network fees, and a growing community have made Tron primed for this sector in the crypto space.
• Easy To Build On – Many developers have chosen to build on Tron because of its easy deployment for DApps in comparison to other blockchains.

Cons:

• Total Supply is Higher Than Many Projects – Tron (TRX) has a total supply of more than 100 billion tokens – a lot higher than most projects. Many believe that the project is overvalued.
• Justin Sun Is Surrounded By Controversy – The founder of Tron has somewhat of a tainted reputation, having been called a scammer and a shady character. Sun has been on the receiving side of media slamming for many incidents over the years.

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