How Energy is Used in the Tron Network

In a series of articles dedicated to the Tron ecosystem, we have already discussed a number of features of this platform. We found out that it is built on the principle of blockchain, that is, each user of the network has access to the entire chain of information blocks. All users can participate in the management of these blocks through a voting system if they block part of their assets in the blockchain cryptocurrency. For providing their savings for use by the ecosystem, participants receive a reward in the form of native crypto in tokens TRX, if they are chosen as super representatives, or as resources important for the operation of the blockchain – Energy and Bandwidth. The Bandwidth resource ensures network throughput for prompt transactions. The Energy resource ensures the execution of smart contracts. Both resources generally eliminate network congestion and ensure the security of transactions and smart contracts from malicious actions.

If with the resource that ensures better transaction throughput everything is simple - a certain amount of Bandwidth is provided to each participant daily and free of charge, then with Energy everything is somewhat more complicated. Therefore, let's dwell on the features of this resource in more detail.

There Are Always Enough Validators

First of all, it should be said that Energy is not some special resource exclusively of the Tron ecosystem or cryptocurrency Internet communities. This resource is used on all platforms created according to the blockchain type, where smart contracts are created - a kind of digital agreements between two parties. This is a way to eliminate the intermediary between the participants of the transaction, as well as to ensure maximum confidentiality of these relations.

What privacy are we talking about, if it was said above that the blockchain database is open to any user - some will think. The blockchain database is not the same as the database on remote servers. By the way, it is easier for an intruder to hack the database on servers than the blockchain storage system. After all, on the blockchain platform, information is stored in blocks, the state of which is controlled before adding to the network. And what makes it all happen?

This work is performed by verification nodes, or validators, which the system selects automatically, assessing the uptime of the node and the volume of locked crypto. They are the ones who voluntarily provide their computer for the common good of the blockchain registry, checking transactions and blocks to exclude malicious spam that can be launched for the purpose of hacking. Although hacking a couple of blocks will not solve the fraudster's problem, and there is not enough power to hack the entire chain of constantly updated blocks.

Maintaining the integrity of the blockchain is one of the tasks of validators. In addition, they resolve conflicts, eliminate counterfeiting, and support the principle of decentralization, on which the work of any blockchain is based. After all, verification nodes can be located in different geographical points of the planet.

Validators participate in ecosystem governance by voting on issues ranging from protocol changes to technical issues.

Tron ecosystem native crypto is obtained by staking, the system does not require special capacities, like blockchains, where cryptocurrency is mined. That is, it is somewhat easier to become a validator in the Tron network than, say, in the Ethereum network for miners, and the reward is easier to get. So, there are always enough validators and the ecosystem is safe.

However, the validator of Tron must have a certain amount of not only native crypto, but also a reserve of resources in the form of Energy and Bandwidth to perform the required functions.

This is one of the uses of resources in the Tron network - to ensure the stable operation of the checking nodes. But still, the main task of Energy is providing smart contracts, since not every blockchain participant strives for management, especially since it requires technical training, special training and the implementation of software on your computer with high bandwidth. Later we will discuss how you can participate in network management by simply delegating your authority - this is available to every user of the platform.

As well as the use of smart contracts, which are also available to any participant in the blockchain network, and it is not at all difficult to understand them.

Without Energy a Smart Contract Is Impossible

First, we need to understand what the advantage of a smart contract computer code is over the usual words used to draw up a classic contract. First of all, the parties to a smart contract cannot arbitrarily interpret the conditions written in this digital set of instructions – it is based on the if … then condition, which is also classic for coding software.

Only the complete, 100% completion of the tasks specified in this piece of computer code and their automatic confirmation can allow the parties to exchange assets or receive a reward for one of the parties for accurately completed tasks.

By the way, how often have you encountered violations of the terms of regular contracts, and how often did the violator pay a penalty? Well, violation of the terms of a smart contract is excluded - it is considered as a failure to fulfill the terms in general, even if all other conditions are met. This is both the advantage and disadvantage of a smart contract: it is not subject to adjustment and cannot be supplemented with appendices after its approval by the parties. In the event of a violation of a specific expiration date, the smart contract is liquidated.

Moreover, this self-executing contract is concluded without the participation of a third party, i.e. an intermediary. The customer and the contractor do not even need to resort to a notary - his role is performed by a smart contract.

For example, let's draw an analogy with a bank card, from which you want to withdraw a certain amount. What commands are embedded in the ATM program? If there are enough funds on the card to withdraw the requested amount, the money should be issued. If there are not enough funds on the card, the money should not be issued. That is, the process is controlled and the decision is made by a third party - the bank. In the case of a smart contract, both control and the decision are already provided in the code, and the conditions were dictated by the parties, without any intermediaries.

This approach to the transaction eliminates any fraud options. For example, when buying real estate, you can enter all the desired characteristics of an apartment, house, car, land plot, etc. into a smart contract. The same applies to any object, as well as finances, for example, exchanging crypto for fiat currencies or vice versa.

Of course, the blockchain itself could be called a third party – after all, it keeps track of all the smart contracts on the platform. But the point is that its control is to ensure that the transaction automatically comes into effect if all the conditions are met unconditionally and within the agreed time frame, since all smart contracts are embedded in the computer code that the blockchain controls.

Smart contracts, originally a blockchain technology, are now successfully expanding into the wider business world, moving beyond the cryptocurrency space.

Tron smart contracts are no exception. These computer programs require certain resources that the blockchain technology operates on. The Bandwidth resource ensures a high level of transaction throughput, and the Energy resource supplies and renews the energy spent on the process of creating smart contracts. In addition to smart contracts, the Energy resource is also used for transactions when interacting with decentralized applications dApps and DeFi.

Energy for dApps Package

We have already mentioned in previous publications that the Tron ecosystem was created as a network of decentralized applications and a platform in the field of blockchain games.

The network did not abandon these functions when it released the TRX cryptographic tokens of its own cryptocurrency Tronix. And all these functions related to decentralized applications, of which smart digital contracts are a part, require a significant number of transactions, which must be provided, among other things, by the Energy resource.

Decentralized applications are a package of smart contracts. And if for one smart contract 1, rarely 2 transactions are possible, then when interacting with dApps, a significant number of transactions are carried out, which requires even more resources.

These applications are very attractive for developers of entertainment and creative content, both for their own use and for monetization.

One advantage here – no centralized server for storage. dApps are autonomous and not controlled by any organizations. They are transparent, have open source code, combine user interface and smart contract package.

Varieties of dApps cover almost all areas of human activity online and even beyond: fine art, games, advertising, collecting (NFT), online trading (marketplaces, message boards, etc.), content for social networks, etc.

Energy for DeFi

Among decentralized blockchain applications, we would highlight packages designed for decentralization of finance - DeFi. These applications practically provide the functions of financial institutions, only without intermediary services. That is, when conducting a regular banking transaction for money transfers, the sender's and recipient's banks with their commission are excluded.

Thanks to smart contract packages combined into a decentralized DeFi application, a platform user can provide financial services themselves or receive such services from other network participants: lend or borrow, exchange different types of currencies, make money transfers, withdraw cash, etc.

In addition, a smart contract package, which almost all decentralized applications are, allows more than two parties to participate in a complex transaction at the same time, without any intermediaries.

The transaction fee in the blockchain will cost you much less than in traditional financial institutions, and the time it takes to complete them on the Tron platform is measured in seconds. And there is another option not only to reduce transaction costs, but to conduct them practically for free.

How to Reduce Transaction Costs

Unlike Bandwidth, the Energy resource is not distributed even in minimal free quotas - it must be paid for with native currency. And this is expensive, especially when using TRC-20 tokens, which provide complex transactions, interaction with various smart contracts and other tokens. Simply because a significant number of transactions are required for a whole package of smart contracts that consume the Energy resource.

But you can significantly reduce the cost of servicing transactions when working with smart contracts and even their packages. To do this, you do not have to spend time or crypto. Just send some of it to staking. You will get two advantages at once - you will earn "points" for participating in voting and receive such an important Energy resource. By the way, it is not at all necessary to participate in network management, passive staking is enough to receive the necessary volumes of Energy.

Plan Your Resource Consumption

Please note that if you exceed the resources you have accumulated, further transactions will be paid for using the native currency that you will have in your normal storage at that time. Therefore, before working with smart contracts, and especially with more resource-intensive smart contract packages, you should carefully calculate the upcoming Bandwidth and Energy.

Just keep in mind that Bandwidth is used for standard transactions, and Energy is used when working with decentralized applications and simple smart contracts. This will allow you to significantly reduce resource costs or eliminate them altogether. After all, if during the calculations it turns out that you still do not have enough Energy to work with smart contracts, just move your plans until your reserves are replenished. It is better to have resources in excess than to discover in the process of registering a smart contract that you do not have enough Energy.