What Is the Difference Between Energy and Bandwidth in Tron?

The TRON Foundation, which is developing the Tron ecosystem protocol, has developed the native currency Tronix for this blockchain – TRX coins. This is the platform’s main unit of account. Among the numerous types of tokens, Tron uses TRC standard tokens: for simple transactions – TRC-10, for smart contracts – TRC-20, for the issue of non-interchangeable unique digital assets – TRC-721, etc.

But to create and further interact with all these tokens, additional payment is required. These are transaction fees, as well as replenishment of the network's resources. And not all of these requirements are covered by the native TRX crypto.

What are Tron Resources for and How are They Different?

TRC-10 tokens are created at the blockchain level, not through smart contracts, without the participation of a virtual machine and are managed in the same way. To create such a token, you need to pay a commission. One of the advantages of the TRC-10 standard is compatibility with all major crypto wallets and almost completely free use. But with low commissions, high network bandwidth is required for creation. Therefore, the creation of TRC-10 tokens requires one of the important blockchain resources - Bandwidth.

The use of TRC-10 tokens in various fields has virtually no limitations when it comes to a simple transaction.

But to create and work with smart contracts, you need a TRC-20 token. The commission for creating such a token significantly exceeds the commission for creating TRC-10. Moreover, in addition to the Bandwidth resource, to create TRC-20, you also need to pay for energy costs using a resource with the simple name Energy.

Why is the idea of a smart contract so attractive that special tokens are created by well-known cryptocurrency resources to work with them? For example, ERC20 from Ethereum, BEP-2 and BEP-20 from Binance, etc.

Since the smart contract is essentially a digital code, in fact a set of instructions based on the if ... then software condition, it has the following advantages:

· it cannot be violated by any party without complete cancellation - violation of any point of the instructions is considered a failure to comply with the smart contract;

· not available for adjustment after “approval” by the parties;

· unconditional fulfillment of all conditions is required for an exchange of assets or remuneration for work performed to take place;

· automatic confirmation of fulfillment of conditions;

· absence of a third party, including a notary.

A self-executing digital contract cannot be extended or modified by any addendums.

Even relatively experienced cryptocurrency market participants are surprised when they are told that the USDT stablecoin, like other stablecoins, is a smart contract based on Tron and initially based on Ethereum. Tron now has its own algorithmic stablecoin USD D, which is also tied to the US dollar exchange rate, like USDT.

And of course, all memecoins are also smart contracts.

All smart contracts are embedded in computer code that is managed by the blockchain. It can, of course, be considered a third party, but its function is purely controllable and consists in ensuring that the transaction automatically comes into force when all the conditions listed in the smart contract are met.

A more complex version of smart contracts are decentralized applications (DApps, DeFi), which are a package of smart contracts.

If 1-2 transactions are enough for a simple smart contract, then when creating DApps, the number of necessary transactions increases significantly, as do the resources for paying for transactions. Moreover, both types of resources are used, and if they are absent, you will have to pay TRX tokens. Below we will tell you how you can avoid spending the native currency and get by with only resources, and how to stock up on them.

Decentralized applications are attractive for developers of entertainment and creative content, for their own use and monetization. All these applications are an autonomous digital product and do not need servers to store them, which means they are not controlled by third parties or organizations. They are transparent, have open-source code, combine a user interface and a smart contract package.

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

And more recently, the DeFi platform of Justin Sun launched SunPump memecoin marketplace on the Tron blockchain. So, users have the opportunity to create non-fungible tokens (NFT) here. This is a great opportunity for creative users and developers who have the opportunity to create a unique product that has no analogues. Of course, this will be more entertainment content, but if you look at how the emergence of at least new memecoins is welcomed, then we can assume that NFT has promising prospects for development.

And if you prefer to seriously engage in financial transactions on blockchains, then you will not ignore decentralized DeFi applications. As already mentioned, Tron has its own platform Sun.io. This system based on the cryptocurrency protocol creates an integrated decentralized exchange that offers users support for memecoins, liquidity mining, token exchange and supports many other useful features.

All these complex transactions and smart contracts require significant technological capacities, high energy costs and high bandwidth. Therefore, all operations with them involve the restoration of these parameters using special resources Energy and Bandwidth from the user's account.

Let's summarize this section. In the Tron blockchain network, both the native TRX cryptocurrency and Energy resources are used to collect fees and Bandwidth for payment:

· simple transactions;

· creation of smart contracts;

· development of decentralized applications DApps and DeFi;

· creation of NFTs – non-fungible tokens for the creation of unique digital assets using the TRC-721 standard.

They ensure both network security from overloads and malicious actions in the Tron network, and replenish the resources spent on power supply (Energy) and network transmission (Bandwidth).

Energy resource is also required. This is their difference in the area of application.

Obtaining these resources also differs, which we will discuss below.

How to Get Energy and Bandwidth

Good news for newcomers who want to join the cryptocurrency blockchain community. Are there other decentralized platforms? – we hear a surprised question. Well, of course!

Tron ecosystem itself was initially created as a blockchain for producing and exchanging entertainment content. It was implied that even the tokens would not be of its own production, but from the Tron- compatible Ethereum platform. And after the “borrowed” token standards were replaced by their own TRC-10, TRC-20, the idea of own crypto matured.

But the method of mining it on the decentralized Tron platform was strikingly different from the one used on the Ethereum cryptocurrency platform. The good old, but too expensive for users, mining was replaced by staking.

Why did we go into the background? Because the staking method is not only the basis for earning TRX crypto, but also the resources we are talking about in this article: Energy and Bandwidth.

What is the principle of staking? Without going into details, the process of mining crypto using this method can be described as follows.

Option 1. A free staker can remain free without entering into any relations with other users. He simply freezes part of his crypto and undertakes not to conduct any operations with it for a certain period of time set by the platform. After this period, the blockchain thanks the staker for providing his own funds for use by the network. As a thank you, the staker can receive TRX or resources, about which an agreement is drawn up between him and the ecosystem. Well, that's probably a bit of a stretch. You just indicate which resources you want to receive.

You can note both Energy and Bandwidth. And here we return to the promised good news for beginners. As soon as you open (or register an existing) wallet on Tron, there will already be some amount of Bandwidth, and this amount depends on the daily quota of Bandwidth for each account. And another good news: this daily quota is absolutely free.

The good news doesn't end there - just read on.

Option 2. If you regularly set aside some crypto to freeze, just to get resources, you may receive an offer to participate in voting. Here you have the opportunity to receive a significant reward depending on how much you pour into the common "freezer".

Even a small but regularly frozen amount of TRX can allow you to choose delegates who will solve important blockchain tasks, in particular, adding new blocks to the chain.

The constant number of super representatives in the Tron system is 27, but only the number is constant. After all, every 6 hours a new super representative is elected by vote, who receives a reward for frozen assets and work on block control. In particular, for each new block (and it is added to the ecosystem every 3 seconds), the adder receives a certain number of Tron cryptocurrency tokens.

When distributing the reward, you can claim not only TRX, but also resources, and then working with smart contracts will be paid for with this free Energy.

In the Tron ecosystem, you have the opportunity to "career up". If you have the desire, resources, and tech skills, you can become a super partner voter, then a super partner, a super representative candidate, and finally - a super representative.

All these categories, within the limits of their tasks, participate in network management, the formation of blocks and their addition to the general chain of blocks.

This group of participants has the opportunity to get their share of crypto and resources, as there are two types of rewards - for block production and for voting. By prior agreement, the amount of reward is distributed among the group participants depending on their contribution.

Option 3. Usually, it is the least attractive to users, because it consists of buying the missing resources for crypto - spending TRX tokens. Keep in mind that if you make a mistake in calculating the commission, and when working with a complex smart contract you run out of resources, the blockchain will start spending your TRX without warning. So this is a reason to carefully calculate the possible consumption of resources and it is better to stock up on some surplus, since in TRX it will cost you much more. You can estimate the energy costs for a certain transaction through the TronRelic service.

Option 4. There are exchanges where you can buy or rent Energy even on more favorable terms than you would get in the process of staking on the Tron blockchain. But this offer is for large crypto holders or those who enter into a large number of smart contracts, since very high volumes of Energy are offered.

All these exchanges, marketplaces and shops work on the same principle: the customer buys a certain amount ofEnergy for a certain period with payment in TRX. The cost of the resource depends on the market situation at the time of the transaction.

As with staking, to purchase of Energy installs the TronLink browser extension and connects the wallet.

By the way, the TronLink wallet is designed specifically for the Tron blockchain and supports all of the above-mentioned tokens of this network, as well as Energy resources and Bandwidth.

Actually, creating a wallet is the first step for a newbie on this platform. To do this, use the ecosystem block explorer – TronScan.

On the main page of the service, by clicking on Connect Wallet, you will see a TronLink section. You will either receive an installation prompt or, if the wallet browser extension is installed, simply connect it.

Then simply complete the tasks by filling in the appropriate fields. Please note that some users, having memorized or written down the password, are frivolous about the mnemonic phrase. But only knowledge of seed phrase can provide you with access to your wallet if you forgot your password, and it is the only way to get your private keys if you lose the device itself. So, write it down carefully, strictly observing the order of the characters (seed phrase for TronScan is generated automatically) and keep it in a place inaccessible to strangers. Especially since you will need it immediately for control input. Click on Connect Wallet – you have integrated the created wallet into TronScan.

If you are using the app or extension version, install it as a regular app – and create a wallet using the same principle as described above. By the way, TronLink is offered in several versions: as a browser extension, as a mobile app for iOS and Android, and also as an application for personal computer.

TronLink is a non-custodial wallet, as its keys are stored on your device, not on a remote server. In addition, TronLink supports all Tron products, and has other advantages that are in demand among participants of the Tron blockchain platform:

· support via a built-in token exchanger for some other ecosystems with the ability to exchange them via TronLink;

· there is no need to master new services, which is important for platform pioneers – they can manage their funds without resorting to third-party services;

· the ability to easily move from one information system to another information system while performing a specific process, for example, access from the wallet interface directly to decentralized applications DApp – seamless integration;

· full integration of online wallet with applications, blockchain games, collectibles for monetization, investment, entertainment and collecting;

· the wallet is compatible with the Ethereum platform virtual machine, which allows you to go beyond the “native” ecosystem to create decentralized applications of various directions;

· a multi-level security system, starting from storing keys on the device, passwords and mnemonics, and ending with encryption and biometrics;

· reliable system for controlling the level of Dapp’s access to the wallet;

· compatibility with hardware wallets for more secure storage of assets.

Let’s keep such a function as support for unique staking mechanisms out of this list, since this is the main topic of the article. You will immediately see the Bandwidth and Energy resource parameters in the main window of the wallet you created.

To sum it up, remember the following. The Bandwidth resource, which the Tron blockchain platform renews daily for any account, allows you to perform transactions on the main network. This is the so-called gas fee. Sufficient bandwidth is especially important for complex decentralized applications. For example, on the WINK platform, you can make small transactions, while your savings in native currency will remain intact. That is, the Bandwidth resource supports simple transactions, freeing you from paying for gas. This is important in projects where many transactions are carried out.

The Energy resource is called fuel for specifically smart contracts in the Tron network, which require significant computing resources of the network's virtual machine. To ensure that other participants in the system do not suffer from a lack of energy, it must be constantly replenished, right in the process of its consumption by each participant.

But in addition to Energy, when working with smart contracts, you also need to regularly restore the network bandwidth, which uses up Bandwidth reserves from your wallet.

Please remember that when the network runs out of resources for subsequent transactions, the native currency in your wallet will be burned. Carefully calculate the resource costs in advance before you start working with decentralized applications and other Tron tokens.