What Is the Tron Network?

With this publication, we open a series of articles dedicated to the disruptive network of the TRON (TRX) blockchain platform. The article offers an analysis of the basics of TRON, the history of its creation and implementation, with special attention paid to the technical aspects of this decentralized platform. Later, we plan to tell you about TRON's special standards, its technologies, its role in the cryptocurrency community, as well as everything you wanted to know about this platform, which has confidently taken its place as one of the key representatives of the blockchain industry and cryptocurrency production. Our series is designed for both beginner users of the TRON platform and those who have already advanced in mastering its services and capabilities.

First of all, let’s define the terms used in this article.

This blockchain is fashionably called the disruptor - currently, the TRON platform is one of the leading projects for decentralization of the network segment based on blockchain. Initially, the author of the project aimed to create a free, globally accessible entertainment system with digital content without an intermediary.

For this purpose, P2P (peer-to-peer network) technology was used, which eliminated the intermediary from the interaction between the user and the digital content created by him. As you understand, this allowed to significantly reduce the costs of not only the developer, but also the user, as well as to increase operational efficiency in the exchange of digital content. Digital content can be works in the form of audio or video, various visual art objects, etc. And as it turned out later, this is also a great opportunity to use the "native" TRX token for transactions and applications in the TRON network.

The basis for the native TRON token was the cryptocurrency token of the Ethereum blockchain platform, with which the Chinese project closely and productively cooperates. Therefore, it is not surprising that, with the support of various disruptive networks, TRON is compatible with both Ethereum smart contracts and the first-level EOS blockchain.

The functionality of the TRON platform is determined by its structure. The architecture of the blockchain platform is based on the following strategic levels: core, storage, application level. All parts of the blockchain structure perform certain functions. It is worth noting that the strategic structure of this blockchain does not include such a component as a miner. Later we will tell you how TRONIX (TRX) is “mined” – the native cryptocurrency of the TRON platform.

A Little History

As we have already mentioned, the platform developer Justin Sun did not initially plan to use the TRON blockchain platform for cryptocurrency transactions. The plans were somewhat more modest - he just wanted to decentralize the network, namely, the segment dedicated to entertainment and the exchange of user-generated content. It was 2017, and Justin was building his platform by analogy and on the basis of the Ethereum cryptocurrency blockchain.

It is not known whether he really did not plan to engage in cryptocurrency through the creation of tokens, but the following year Sun was already the creator and owner of his own completely independent blockchain platform with an optimal three-layer architecture that provided wide opportunities for scaling.

A unique distributed storage protocol is used to organize the platform storage layer. This layer includes mechanisms for storing blocks and states for storing data. This storage organization provides high throughput and allows for scaling data management.

The fact that Justin Sun really did not plan to work in cryptocurrency is evidenced by the fact that he abandoned the PoW (Proof-of-Work) consensus mechanism, which is the principle by which many popular cryptocurrencies such as Bitcoin, Litecoin, Dogecoin, etc. operate, since it requires a large amount of computing power to add new transactions to the blockchain registry. In organizing the main layer of the structure, which includes smart contracts and account management in addition to consensus, he used a consensus mechanism based on delegated proof of stake (DPoS), considering it more energy-efficient compared to PoW.

The DPoS (Delegated Proof of Stake) consensus algorithm, designed to secure the blockchain, accomplishes this task by creating a voting system. The higher the deposit of a network participant, the greater the weight this participant has in voting.

That is, the author provided his blockchain platform with technology based on democracy (choice in the voting process) to protect the blockchain from centralization and malicious use.

To create and deploy decentralized applications (DApps) and user wallets, there is an application layer in the TRON architecture. These applications are launched in a peer-to-peer network, but operate on the blockchain and allow financial transactions without intermediaries. DApps differ from regular applications in that they have an open source code, transactions are transparent and accessible, and a cryptographic token is used to secure the network. Using these applications expands the functionality of the blockchain platform and increases the involvement of its users.

Decentralization of TRON

Blockchain platforms on the Internet are encroaching on the traditional digital entertainment sector, which is usually controlled mainly by large companies. TRON is no exception, it was created for this purpose. And it attracted the first producers of their own content with the ability to create, store, distribute and control their concept art, video and audio - everything they create, without using third-party services. That is, authors receive remuneration for their works directly, without intermediaries such as Google Play or the Apple App Store. As a result, it becomes much more accessible to buyers of content.

On the day TRON announced that it had expanded its reach by launching on the Ethereum blockchain using a BitTorrent bridge, the price of TRX rose 10% in 24 hours.

According to TRON's creator , launching TRX on Ethereum allowed users and developers to access a wider range of decentralized applications (dApps) and services, and also increased the liquidity and decentralization of the token.

Decentralized Finance

The DeFi sector fits perfectly into TRON's decentralization goals. DeFi projects work with various assets, such as cryptocurrencies, application tokens, non-fungible tokens and others. The main goal of DeFi is to replace traditional financial institutions. The TRON network has provided DeFi applications with the ability to organize clients' finances with access to services without the participation of intermediaries of any level. The blockchain platform supports a range of DeFi apps that help you organize your finances without the involvement of third parties, from lending platforms to decentralized exchanges. A number of DeFi apps built on this platform are taking a hit to traditional financial systems. For example, the JustLend DAO app, which allows its “clients” to borrow, credit, place assets, and earn. And the JUST app is ready to create a fair and distributed financial infrastructure that will provide users with lending and oversight of stablecoins around the world.

According to analytics platform DeFiLlama, DeFi projects powered by Tron have already accumulated over $8 billion in digital assets, indicating the growing interest of developers and users in the opportunities offered by the Tron ecosystem in the field of decentralized financial services.

It is especially noteworthy that the total supply of stablecoins on the Tron network has reached an impressive $59.484 billion. This indicates that Tron is becoming one of the key infrastructures for the issuance and circulation of stablecoins, which can have far-reaching consequences for the entire cryptocurrency industry. The growing popularity of Tron as a platform for stablecoins and DeFi projects can further strengthen the position of this blockchain in the global crypto market and attract new users and investors.

Other Functions and Features of TRON

The native cryptocurrency of the network, TRX, is used to conduct various transactions and operations on the TRON platform. In the next article, we will dwell in detail on the functionality and properties of all TRON tokens, including TRONIX (TRX), and in this review publication we will note that TRX is the prima of the blockchain, it has been assigned the main role in its ecosystem. The token participates in both basic transactions and operations, and ensures the democratic nature of the system by voting super representatives. Thus, they are given the authority to manage the network using TRONIX (TRX).

As already mentioned, the blockchain platform, thanks to its completely open interfaces, is able to interact and function with other products or systems without any restrictions on access and implementation. An example of such interoperability and expansion is the almost complete compatibility of TRON with smart contract platforms such as EOS and Ethereum. Such versatility expands the range of users and developers who are attracted by the possibility of such adaptation. And TRON has become a powerful and flexible blockchain due to this.

We have already talked about the fact that TRON developers have focused on decentralized applications (particularly DApps) and systems in the application layer organization. This has provided a high level of flexibility and ease of use, which has ensured easy migration of DApps from the Ethereum platform to TRON. This process has also been facilitated by the compatibility of the TRON blockchain with the Ethereum solidity language. As a result, along with high throughput, TRON provides higher transaction speeds than Ethereum and can also afford minimal fees.

Developers who create and deploy DApps on the TRON platform are not limited in their choice of preferences: they can create applications from media and games to DeFi. That is, they are given the opportunity to organize their finances and receive services without the participation of intermediaries of any level, without any centralization of processes and financial flows. At the same time, the system is prompt and reliable, without obstacles in the form of slow transactions and expensive commissions.

The TRON network supports a variety of wallets to suit different user needs:

· hardware wallets for secure storage;

· mobile wallets;

· web wallets.

This diversity ensures ease of access and use for everyone. The integration of these wallets into the TRON ecosystem is essential for users to interact with the TRON blockchain, allowing them to store, send, and receive TRX and other tokens issued on the TRON platform.

In the context of cryptocurrency and blockchain, the term “ecosystem” refers to the complex network of participants, applications, protocols, and services associated with a particular cryptocurrency or blockchain platform. It includes developers, users, investors, and other elements. They form the set of conditions in which a cryptocurrency functions and evolves.

Development of TRON

The platform continues to develop. At the end of August 2024, the SunPump memcoin generator was launched on the Tron blockchain. And the next day, it already overtook the recognized leader PumpFun in daily income on the Solana network.

Thus, according to the Dune platform, 7,531 tokens were launched on SunPump on August 21. And the service's daily income was 3.65 million TRX ($562 thousand at the current rate). And PumpFun, with the launch of 6,941 tokens, showed an income of 2.57 thousand SOL (about $373 thousand).

Below are the daily charts of Tron (TRX), which has surged 42%, and Sun Token (SUN), the token named after Justin Sun, which has surged 260% (source: Binance/TradingView).

Among the main partners of TRON are famous world brands: Poloniex, Samsung, BitTorrent, APENFT Marketplace, Swisscom Blockchain, Opera, ChainGPT, etc.

The platform stands out in the blockchain market for its unique features. Firstly, it is able to process up to 2000 transactions per second.

Secondly, its well-thought-out three-tier structure and the consensus mechanism used allow it to further expand due to the growth of the number of transactions and applications in the blockchain industry.

Thirdly, decentralization and democracy in community governance, complemented by a well-developed technical base, ensure the wide availability and reliability of blockchain developments.

TRON Super Representatives

The TRON blockchain ecosystem elects 27 Super Representatives every six hours. All SRs are TRX holders. The election process ensures decentralization and democracy of the network. This mechanism contributes to the formation of a self-regulating ecosystem in which super representatives are motivated to maintain the integrity and performance of the network.

The Tron blockchain does not charge transaction fees. Instead, the super representatives are solely interested in securing the Tron blockchain through block rewards or newly minted TRX tokens.

The TRON community governs the platform as TRX holders have a say in decisions that affect the network through their elected representatives. Every six hours, TRX holders who freeze their accounts can vote to elect candidates for super representatives, with the top 27 participants being considered validators for that round, which is the network participant that verifies new transactions and ensures the security of the blockchain.