Is It Possible to Buy Energy on the Tron Network? How to Do It?

Before answering the question of whether it is possible to buy Energy in the Tron network, let's consider the very principle of the organization of this blockchain platform and its algorithms, which are the basis of obtaining the native cryptocurrency of the ecosystem. Then we’ll understand how to obtain such an important resource for the Tron system as Energy.

Tron is a decentralized blockchain ecosystem for smart contract applications. Initially, the network borrowed many ideas from Ethereum (ETH). Its currency Tronix was issued as an ERC-20 token. Over time, the Tron blockchain platform has gained its audience, especially after the acquisition by Tron Foundation of the leader of peer-to-peer BitTorrent networks.

By 2021, it had successfully surpassed ETH in transactions per second (TPS), managing peaks of 700-1000 TPS, compared to Ethereum's threshold of 13 TPS.

TRX – tokens of the native currency of the Tron network. Has investment value, since TRX is representative of the value of the entire ecosystem. Used for temporary freezing to pay for large energy and bandwidth costs when executing code. The largest holders or those who voted for them with their TRX play a key role in blockchain validation (super-representatives, super-partners).

TRC-10 is an internal standard for issuing tokens on the Tron network. It is not compatible with Ethereum, but is cheaper to operate (you only pay for bandwidth, but do not need to pay for energy, as is the case with TRC-20 and TRC-721).

TRC-20 – smart contract tokens. By issuing your own token in the Tron ecosystem, the user receives coins that follow the rules of this protocol. Technically compatible with ERC-20.

TRC-721 – fungible NFT tokens on the Tron network. Technically compatible with ERC-721.

Delegated as a consensus mechanism Proof-of-Stake (DPoS). Specifically, the Tron system is Proof-of-Stake (PoS), not Proof-of-Work (PoW), like, say, Bitcoin or Litecoin. Therefore, the Tronix crypto is not “mined” by the mining method, which requires proof of work. The Tron blockchain algorithm requires proof of ownership of the native Tronix crypto in the form of TRX tokens.

DPoS algorithm allows you to earn income from staking. This is the process of locking up part of your tokens for a certain period of time. Large holders of TRX tokens, as well as users who participate in voting to elect these holders as validators, are rewarded for providing the network with their balances or part of them, which ensures that Tron is protected from malicious attacks. Elected super representatives participate in the validation of the blockchain platform.

DPoS algorithm (Delegated Proof-of-Stake) in the Tron network involves 27 super representatives who prove ownership of the native cryptocurrency by freezing it. These are the leading validators. They check transactions and maintain the history of the entire blockchain. They are elected by users, TRX holders. Anyone can vote for candidates.

Super representatives are re-elected every 6 hours. Once 27 validators are elected, they start receiving rewards. A new block is released every 3 seconds and contains 32 TRX (Block Rewards). Also, with each block, rewards for voting are awarded (Vote Rewards) 16 TRX per block.

In addition to super-representatives, there are also super-partners. These are candidates who received places 28 through 127 as a result of voting. They do not participate in the consensus and do not perform any work, but they also receive a share of the rewards.

Over the year, 336.38 million TRX is paid to 27 Super Representatives and 168.19 million TRX to 127 Super Partners.

Node representatives, or validators, receive an average of 3% per annum, and users who hold any amount of TRX can also claim these percentages without any calculations, simply by placing the cryptocurrency on the balance and freezing it for staking. These even small funds flow into the general “freezer” of the node (or validator).

- Ah, I see, - you say. - So, this is the currency you can use to buy Energy?

Not exactly. Because this important resource cannot be directly purchased from the blockchain as a commodity for TRX tokens. To understand how to get it, you should understand what this resource is used for in the Tron system.

What is Energy Resource in Tron Network

To interact in the Tron blockchain, users need two types of resources – Energy and Bandwidth. Already by their name, you can determine that Bandwidth provides high-quality network traffic for prompt transactions, and Energy compensates for the costs of computing resources for working with smart contracts. This is the task of this resource - to be an effective fuel for smart contracts, with which both developers and users interact.

The goal of both types of resources is to prevent ecosystem overloads and eliminate fraudulent actions with transactions and smart contracts.

With the Bandwidth resource, it is easier for users - it is constantly replenished for each account. Not long ago, its daily volume was significantly reduced by decision of super representatives, which they explained by the fight against inflation. But this resource is necessary for the simplest transactions, and a daily update of the resource is enough to pay the fees of several transfers within the network or withdraw funds. Therefore, there is no point in considering Bandwidth in more detail in this publication.

Another thing is the Energy resource, which is not replenished in your wallet by itself. Therefore, in order to work with smart contracts, you need to replenish its reserves yourself.

Or actually use the native currency and pay transaction fees when interacting with smart contracts with TRX tokens.

Let's take a closer look at all the options for obtaining Energy in the Tron ecosystem.

Ways to Purchase Energy on the Tron Network

As you already know, it is impossible to directly buy Energy in the Tron ecosystem (or rather from the Tron ecosystem) for the native Tronix cryptocurrency – such a function is simply not available. But there are options in which TRX tokens allow you to receive this resource, which is necessary to ensure transactions during development or interaction with smart contracts.

Smart contracts range from simple self-executing contracts with simple “if … then” conditions to more complex decentralized applications that can execute a whole suite of smart contracts.

The fee for all transactions taking place within smart contracts and DApps is paid by the Energy resource.

Pay for Energy with TRX

Indeed, you don’t have to worry about running out of Energy if you have enough crypto in the form of TRX tokens and are willing to give them to secure a smart contract. In this case, when developing or otherwise interacting with a smart contract or decentralized application, the blockchain will burn your native crypto tokens for Energy, thus charging a fee for each transaction that accompanies this activity.

That is, you understand that this is not a sale-purchase in the literal sense, but a kind of conversion of TRX tokens into the Energy resource you need for work.

In order to launch this conversion in the process of working with smart contracts, you do not need to take any separate actions. Simply, at the first transaction, the process of burning (as network users call it) of TRX tokens is automatically launched in payment for the Energy resource.

Freezing TRX (Staking)

The method described above is usually used as a last resort. It is irrational to give TRX for Energy, because, firstly, it is expensive, and secondly, there is a way to get the necessary supply of Energy practically without spending native crypto, although it is involved in the process. Intrigued? In fact, it is not complicated, and this is partly what the staking method is intended for.

Yes, you can receive not only interest in crypto at the end of the year for the frozen part of TRX, but also resources. This is especially attractive for those who do not have a significant reserve of Tronix crypto tokens . Burning them for Energy is too wasteful, but the interest at the end of the year will not make a difference. In addition, you will receive the annual interest in 365 days, and the resources will be replenished daily.

Even a small amount of TRX tokens frozen allows you to regularly replenish your Energy supply. As a result, the real cost of transaction fees for securing smart contracts and DApps can be reduced to zero, and your native crypto reserves will remain untouched. After all, the freezing process does not involve any costs for the user. Therefore, let's consider this process in more detail.

How to Freeze TRX

Delegated is used as a consensus mechanism Proof-of-Stake (DPoS), and specifically in the Tron system – PoS. This means that in order to receive additional crypto or resources, you must prove that you own Tronix crypto in the form of TRX tokens.

And you temporarily provide a part or the entire volume of these tokens for use by the ecosystem. You should not unlock the frozen tokens for two weeks. In gratitude from the blockchain, you receive the ordered "prizes". Now we are talking about the Energy resource.

That is, this is also not a purchase of Energy in the literal sense of the word, but something like paying the network rent for using your TRX.

In order to receive the “rent”, you need to perform a few simple steps via the TronLink wallet or any other wallet compatible with the Tron ecosystem:

· go to the Freeze section in your TronLink wallet or any other wallet you have installed;

· enter the amount of native crypto in tokens TRX that you wish to block;

· select resource (Energy or Bandwidth), which you want to receive for the frozen volume of TRX - we recommend choosing Energy if you are going to work with smart contracts or DApps;

· confirm the transaction (this is the only expense you will incur during the process of completing the freezing process through the wallet).

Now, for 2 weeks (or another period you set for staking), you will receive Energy daily, which will be used to pay for transactions on smart contracts and DApps. This means that the commission for interacting with smart contracts can be reduced to zero if desired. This means that the Energy that you spend on them will cost you practically nothing.

Why Is Buying Energy through TRX Payment Less Profitable?

If you have read the previous sections carefully, you will already understand that buying of Energy for TRX tokens is less profitable than obtaining this resource by freezing (staking).

Costs of Using TRX

When smart contracts are developed and the network's computing power (what's called gas fees in mining) is compensated for with TRX, it becomes very expensive, especially if you're working with DApps. After all, a simple smart contract can be secured with 1-2 transactions, but a DApp can contain a whole bunch of smart contracts, which would require paying the fees of a dozen or more transactions to secure.

That is, TRX, when paying directly for computing power, are spent with each transaction - and this can be a significant expenditure of tokens, especially if you are a smart contract developer or constantly interact with them.

Savings from Freezing TRX Tokens

As we found out above, the Energy resource can also be constantly replenished, like Bandwidth. The only difference is that Bandwidth provides you with the blockchain itself for free, and to receive Energy every day (also practically for free), you just need to freeze your tokens or part of them for a certain time.

You can extend the freezing period indefinitely. All your expenses are transaction confirmation when you make a freeze through your wallet. Of course, this is nothing compared to the constant TRX expenses for each transaction when servicing smart contracts.

Steps to Buy Energy Using TRX

The process of "buying" Energy using TRX native crypto tokens is triggered automatically, without warning the user (developer). We hope that this will not be due to you simply forgetting about this feature of the blockchain.

If you have no other choice, opportunity or time to replenish your Energy supply before interacting with a smart contract, we recommend that you follow the following procedure:

· roughly calculate how much Energy resource you need to complete the task;

· if the resource is insufficient, calculate how many TRX are needed to cover the need to pay the commission for all transactions;

· check your current TRX and Energy balance via your Tron wallet in the resources and balance section;

· initiate the development (implementation) of a smart contract;

· after finishing your work, check the TRX expenditure in the wallet transaction history.

So, to sum it all up, even though the Tron blockchain does not “trade” resources, Energy can be obtained through staking by freezing your TRX or part of it. You can also (preferably consciously, not through forgetfulness) allow the network to burn TRX from your account to cover missing Energy when securing a smart contract or DApps.

The first method - freezing - is much more profitable: it can be used constantly, extending the TRX freezing period, and the transaction fees for compensating computing power will cost you practically nothing.