What Are Resources in the Tron Network?

Tron blockchain was initially created as a decentralized platform for developers and users of entertainment content in the form of decentralized applications. Tokens of the Ethereum cryptocurrency blockchain were used for this. Some of the tokens of these systems are still compatible, but the Chinese blockchain quickly switched to tokens of its own standard. In particular, this had to be done because the Tron ecosystem began to develop as a separate blockchain.

Now, in addition to the tokens of the TRC-10, TRC-20, TRC-721, TRC-1155 standard, which are created by analogy with the corresponding Ethereum tokens, the Tron network also has tokens of its own cryptocurrency Tronix – TRX.

TRC-10 tokens are used for simple transactions, while TRC-20 tokens are used for smart contract and decentralized application development, which can involve a significant number of transactions. Developer and user capabilities were later expanded with the introduction of the TRC-721 standard for non-fungible tokens (NFTs) and the TRC-1155 standard, which is designed to transfer multiple token types within a single smart contract.

Almost all types of interaction with the above-mentioned tokens require payment of transaction fees. Payment is made both in tokens of the Tron network's own cryptocurrency - TRX, and in two types of special resources - Bandwidth and Energy. Their purpose is to compensate for the network's costs of providing users with traffic and computing resources.

So, developers and other users of the Tron network, when performing simple transactions and interacting with smart contracts, can not spend TRX tokens, but use these special resources to pay for transactions.

Let's take a closer look at each of the Tron blockchain resource types and find out how they affect transaction costs and how Bandwidth and Energy are replenished in this network. Is it possible to buy Energy and Bandwidth in the Tron ecosystem or are there other ways to obtain these resources? Is it possible to make smart contracts and simple transactions cheaper?

Let's answer right away: transaction fees can not only be made cheaper, but also reduced to zero. That is, you will give resources for them, but the resources themselves will cost you nothing. Want to know how this is possible? Just read on.

Types of Resources

Each type of resource provides transactions - simple ones using TRC-10 tokens or within the framework of interaction with smart contracts, including decentralized applications that can contain several smart contracts. For different types of transactions, a specific type of resource is important, the choice of which, of course, affects the cost of transactions.

Energy

This type of resource is similar to the gas fee in a cryptocurrency blockchain where crypto is mined. The Tron ecosystem is a staking blockchain, and Energy is charged for each transaction to compensate the consumer for the computing resources spent.

This resource is used in the development and any interaction with smart contracts, it is called fuel for smart contracts.

The simplest of them requires the expenditure of certain capacities, which the blockchain provides to users. In order not to create network overload and to ensure the required level of processing of all operations within the smart contract or decentralized application, these costs of computing capacities are paid for by the Energy resource.

Having enough Energy or not having enough to pay the fee directly affects the cost of transactions. If a user or developer has accumulated enough of this resource during staking, working with smart contracts can be completely free.

If the developer or user does not have enough Energy to support the smart contract, the network will continue to pay transaction fees, burning the crypto reserves in TRX tokens, which of course will cost significantly more.

Bandwidth

This resource is usually used when a user interacts with TRC-10 tokens and other simple transactions - transferring crypto or data, withdrawing crypto, etc. That is, for such operations there is no need to create a smart contract and interact with it.

This resource compensates for the network costs of providing bandwidth during a transaction, that is, the user pays for the provision of high-quality traffic with this resource.

The impact of Bandwidth on transaction costs is the same as with Energy. If the resource reserves are depleted, the network continues to charge the transaction fee without warning, but in TRX . Considering that the Bandwidth resource is initially provided free of charge to the user, this will be a very annoying extra expenditure of crypto.

How to Get Resources

Bandwidth and Energy resources used in the Tron ecosystem are not only intended for different purposes, they are also received by the user of the network in different ways, although they have something in common in the ability to replenish the reserves of these resources, and for free.

Freezing TRX (Staking)

In previous articles in this series, we talked about how, unlike the mining method, which uses a consensus mechanism such as PoW, cryptocurrency staking uses the PoS mechanism. That is, mining is based on Proof of Work, and staking is based on proof of stake Proof of Stake.

That is, in order to “mine” crypto in the Tron system using the staking method, you should have TRX tokens on your balance. Unlike mining, where this requires serious technological capacity, which requires serious electricity consumption.

In the Tron network, you only need to block a portion of your Tronix crypto for a certain period to receive annual or resources. This process is called staking, or freezing. The blockchain platform determines the minimum freezing period, and the user sets the maximum by extending the blocking of funds. During this period, when the user cannot dispose of the frozen crypto, the eco-platform uses it for the community. At the same time, the user's balance does not change, at the end of the freezing period, all tokens remain safe and sound.

Freezing TRX to receive annual interest is beneficial for holders of significant amounts of crypto. But if the stock is still insignificant, it is better to use freezing to receive free resources. The more of the crypto stock you allocate for freezing to receive resources, the more Energy and Bandwidth you will receive.

To do this, when sending crypto to be frozen in your wallet, you should select the type of resources that you want to receive in gratitude for “renting out” your TRX tokens.

Just decide what transactions are most common for you: choose Energy if you work with smart contracts, or Bandwidth if you are limited to regular transactions.

Restoring Bandwidth

If you have noticed, in the publications of this series we pay more attention to the Energy resource. This is not accidental, since the resource Bandwidth is daily credited to the balance of each account in a certain volume, which is set by the vote of super representatives from the users of the network.

That is, the bandwidth will be automatically restored, even if you completely exhausted it the day before. But we still recommend checking the availability of this resource and roughly calculating the upcoming consumption, so as not to give the network a reason to burn your TRX.

Automatic daily replenishment does not depend on whether your TRX tokens are frozen or not and does not depend on how much TRX you have locked.

Impact on Transaction Costs

As we have found out, the presence or lack of Bandwidth and Energy significantly affect the cost of transactions. Knowing the features and capabilities of these resources, as well as how to replenish them, you can use them to consciously regulate the cost of transactions, both regular and when working with smart contracts.

Minimizing Expenses

By regularly providing Energy and Bandwidth through TRX freezing, you can reduce the cost of transactions to zero even when providing smart contracts and decentralized applications. Having a stock of these resources will eliminate the need to pay for transactions with TRX tokens.

This approach is especially important for DApps and smart contract developers, as well as for all users who interact with these applications and digital contracts.

Commission for Lack of Resources

A shortage of Energy (for paying for smart contract transactions of any complexity) and Bandwidth (for regular transactions) on the balance will lead to irrational spending of TRX tokens. Without warning, the ecosystem will start burning crypto as soon as the resource reserves are exhausted, and work with the smart contract will continue. That is, the system will continue to compensate for the use of high-quality traffic and computing power, but at the expense of your TRX reserves.

This will, of course, significantly increase the cost of transactions, especially considering that both resources can be obtained for free through the staking process.

Effective Resource Management

Experienced developers and users of smart contracts and decentralized applications, as well as those who regularly conduct large numbers of simple transactions, usually manage Bandwidth and Energy resources efficiently. They do not allow TRX to be wasted on fees for any transactions.

There are two options for this: freezing TRX for long periods of time, giving the Tron blockchain the right to use them for the benefit of the entire ecosystem community.

The second opportunity to significantly replenish the stock of resources and even TRX is participation in voting, the selection of representatives and super representatives. Of great importance in this case is the promotion of the participant in this system - from a simple candidate for representatives to a representative and above. In this case, the network user has the opportunity to receive more significant gratitude in the form of resources and TRX.

Using all the possibilities of free replenishment of resources for traffic and energy allows not only to minimize the costs of the commission, but also to reduce them to zero. What is important for serious developers and active users - this allows you to plan the execution of operations to eliminate irrational spending of TRX.

Example

1. You transfer TRX tokens within the network. This is a simple transaction, it requires paying a fee for providing bandwidth. If you have enough Bandwidth on your balance, which has accumulated due to daily automatic replenishment, the operation will be virtually free for you - the network will take the resource it previously provided.

But if you are actively transferring funds within the network on this day, one transaction will not be enough. And here everything depends on the Bandwidth reserves: if they are exhausted, the transaction will already cost you that part of the TRX that the network will take as compensation for the provided traffic.

2. Before developing or launching a smart contract, you have taken into account all the necessary transactions and made sure that there are enough Energy reserves to support it. In this case, supporting the smart contract will cost you nothing.

But if you made a mistake in your calculations or didn’t bother to check the availability of the required amount of Energy, and the reserve is not enough to pay for all the smart contract transactions, you will lose TRX to compensate for the computing resources provided by the network to carry out some of the transactions.

Summary

Both Bandwidth and Energy are important resources of the Tron blockchain platform, with the help of which users can plan their expenses for providing both simple transactions and smart contracts. Proper planning and accumulation of the necessary volumes of these resources allow you to reduce the transaction fee or even bring it to zero. This applies to both regular financial transactions such as transferring crypto within the network and providing smart contracts, as well as decentralized applications, which are packages of smart contracts.

The ability to manage resources eliminates the irrational use of TRX as commissions and an increase in the cost of transactions. The necessary reserve of resources can be accumulated by freezing the native crypto.