What Is TRX?

As you already know from our series of publications (or from personal experience), TRON is a blockchain platform that has its own cryptocurrency and serves the entertainment content segment. At the same time, as befits a blockchain, TRON excludes intermediaries from both the financial and entertainment segments. The presence of a native cryptocurrency plays a significant role in the decentralization of the network. In this article, we introduce those who do not know about TRX (Tronix) to its main functions and features.

What new can be said about cryptocurrency? After all, so many reviews and analytical articles have been written about this decentralized digital currency, which has no intermediaries between the "producer" and the user. It turns out that it is possible. For example, TRON blockchain coins do not involve extraction, that is, mining. This means that there is no need for significant technical capacities and special equipment, as well as large expenses for their acquisition and maintenance.

Yes, this method of "mining" cryptocurrency is passive and you can't count on a big return. But 3% per annum just for the fact that the owner of the tokens simply blocks them on his account for a certain time - not bad conditions. This is the staking method - the owner of the coins receives a reward for allowing the "producer" of the cryptocurrency to use part of his savings.

But other crypto projects that grew on mining also provide this service on the market, and their annual rates should be higher. Let's see. In 2022, Ethereum provided its coin holders with access to earning on staking. So analysts predict that in 2024 on staking Ethereum can earn about 3.6% per annum. As you can see, the difference is small. But… To stake ETH (Ethereum coins), you need to block more than 70 thousand US dollars in terms of regular money - and this is a considerable amount for many.

Indeed, some crypto projects offer higher annual rates. For example, stake TIA (Celestia cryptocurrency) can be as much as 14% per annum. But... and how can there be no "but" in such a matter - profit from Celestia staking profitability can be eaten up by almost 50% inflation.

According to cryptocurrency market analysts, the annual yield from the same amount of frozen assets will give almost the same profit from staking to both Ethereum coin holders and TRX (Tronix) holders. Keep in mind that Ethereum is one of the most popular and oldest crypto projects, and TRON has only recently mastered the crypto market, and began as a regular blockchain project for the production of entertainment content, its exchange and sale without intermediaries.

From decentralization of entertainment content produced by TRON network participants, the author of the project Justin Sun has moved to decentralize finance. By focusing on such a narrow range of tasks, the startup has retained its considerable audience, as the platform's cryptocurrency has adapted the digital ecosystem to entertainment content.

To speed up the launch of the project in the P2P network, the work was initially carried out in the blockchain Ethereum, which allowed project participants to share resources and exchange data directly with each other. Later, Tron became one of the pioneers in implementing the Proof-of-Stake algorithm and the validation consensus into the architecture of its own blockchain.

Let's take a closer look at the main functions of the Tron cryptocurrency and possible cases of its application not only for organizing your finances and transactions, but also for participating in the management of the blockchain platform itself. Is this possible? And not only that - we also tell you how the native currency TRX (Tronix) helps to profitably use decentralized applications DApps to implement your projects in the field of entertainment and creative content.

How to Implement Your Projects with TRX (Tronix)

We have already talked about the fact that the Tron eco-platform allows network participants to solve their problems without intermediaries. To do this, they are offered the very principle of the blockchain, a number of tokens for working with various applications for creating and exchanging entertainment content, as well as for organizing their finances without the participation of third parties, and, finally, the native crypto TRX (Tronix).

Advantages

Before talking about implementing your own plans and projects with the help of a third-party resource, which any platform is for a potential user, you should analyze its advantages compared to similar offers.

Tron blockchain platform and the choice of the method of "mining" crypto. The advantages of this choice for the user are that you do not have to pay for gas during transactions, as in the Ethereum network. And here we are talking not only about saving resources, but also about saving time: if Tron conducts 2000 transactions per second, then for Ethereum this figure is 25, and for Bitcoin - even less, only 7.

In order to participate in the management of the platform, you will not have to collect and freeze too much money, as on those crypto resources where staking coexists with mining. The management of such networks is too complicated, in addition to users, representatives of the structures that ensure the operation of the networks also participate in it. On the Tron platform, management is carried out through super representatives, who have the right to be elected by those TRX holders who have a larger amount of frozen assets at the time of the election. As a result, discussions on the most important issues are held much more often - as needed, and decisions are made more quickly.

That is, the Tron platform rewards its active assistants not only materially (the frozen assets are rewarded), but also morally, trusting them with management.

Another advantage of Tron is its transformation into a real factory of decentralized applications (dApps), which operates 24/7. For this, specially developed TRC-20 tokens are used, which ensure compatibility with these decentralized applications. This approach greatly contributes to the growth of network scaling.

Even more users were attracted by the acquisition of BitTorrent at the time, which allowed for a significant increase in the security and efficiency of transactions. This is not surprising, because at the time of the deal it was the most popular file-sharing p2p protocol on the planet.

Of course, Tron provides users with the opportunity to implement projects in the field of decentralized finance. They have access to DeFi applications that provide financial services through smart contracts.

Now let's take a closer look at how you can take advantage of all these benefits if you join the Tron ecosystem community and become a holder of its native cryptocurrency - TRX (Tronix) tokens.

Cheap Transactions – That’s What Tron Is All About

The main use of blockchain cryptocurrency is to pay for transactions and smart contracts, as well as to earn passive income through staking .

Let's say right away that many large holders of stablecoins Ethereum switched to stablecoins Tron – USDT TRC20 precisely because of the significant difference in transaction fees.

The advantage of the Tron eco-platform in the field of transactions is that the user is offered a choice of these operations using the native currency, various blockchain tokens and special resources that allow transactions to be carried out completely free of charge, but more on that below.

The offers available to holders of TRX and other platform tokens concern transactions:

· with TRX and other TRC-10 standard tokens;

· with TRC-20 standard tokens such as USDT.

We will return to this short list later, but for now – more details about low commissions. The transaction fee in the Tron network is 0.1 TRX if you transfer TRX crypto ( Tronix ), and about 2 TRX if you transfer TRC-10, TRC-20 tokens, etc. For comparison: the cost of asset transactions in the Ethereum network is tens of times higher.

Tron also has options with free transactions - using Bandwidth and Energy resources.

Transactions for free - this is about Tron resources

How can you get (earn) these magical resources to ensure free transactions?

If you are transacting with TRC-10 tokens, it is easier. This process requires additional bandwidth. The Tron blockchain provides 5,000 Bandwidth Points to all community members (per account) for free every day. So you should simply store this resource and spend it as you accumulate the required amount to pay for transactions involving TRC-10 tokens.

The missing amount of Bandwidth Points can be supplemented with TRX tokens. They can also be exchanged for blockchain crypto at the exchange rate valid at the time of exchange.

While TRC-10 tokens are created and managed directly at the blockchain level, TRC-20 tokens are used to develop and implement smart contracts – a kind of agreement between ecosystem participants that contains all the information about both the parties to the contract and its content. This reliably protects copyright, if we are talking about development, as well as the secrecy of the transaction. At the same time, third parties as intermediaries are excluded, which is what Tron strives for as a large-scale blockchain platform.

You can use Energy and Bandwidth to transact with TRC- 20 tokens. You get Energy by locking your TRX assets for a certain amount of time, during which the ecosystem can use this asset. For this, you get a reward in the form of Energy.

Well, if you still don’t have enough “fuel” for smart contracts using TRC-20 standard tokens, then the Energy resource can also be purchased for native crypto.

And there really may not be enough fuel. After all, tokens of the TRC-20 standard are quite in demand, since they perform a variety of functions. For example, the USDT stablecoin is an excellent reliable crypto for storage and transactions, since it is tied to the US dollar (1:1).

You can also use various TRC-20 standard tokens to use the decentralized lending platform, participate and bet in various gambling games, participate in network management, receive rewards for blocking assets, interact with the investment fund in NFT projects, etc.

All this is available on the blockchain. Tron, thanks to its many TR C -20 tokens , continues to evolve, expanding the scaling capabilities of the ecosystem.

Decentralize and Manage

Tron ecosystem is a unique blockchain project that has brought together the financial system and entertainment content. You can develop while earning money, exchange any network assets, including these developments.

To protect against the intervention of intermediaries, the eco-platform uses a number of well-known developments, adapting them to the architecture of the classic blockchain. We have already mentioned smart contracts as a way to exclude intermediaries from transactions.

Another barrier against malicious use and third-party interference is the choice of consensus mechanism: DPoS (Delegated Proof of Stake) vs. PoW (Proof-of-Work). Despite the fact that Justin Sun, the author of the Tron blockchain, adopted many of the structures of well-known cryptocurrency projects, but he still preferred the DPoS algorithm, although most of the mentioned projects are built on the PoW protocol. That is, Justin chose efficiency and maximum decentralization. This also ensured a more democratic approach to management - that is, to decision-making.

What does TRX crypto have to do with this? – you ask.

To make decisions according to the DPoS algorithm , voting of trusted persons, or as they are called, super representatives, is used . They are delegated the right to make decisions on behalf of their constituents. The task of super representatives is to validate transactions and confirm blocks.

So, when choosing these representatives, not only reputation mechanisms are used. The number of tokens of potential delegates is also taken into account. From the information in the previous section of this article, you already understood that the Tron blockchain is based on the resource principle of transactions, as opposed to the auction principle, according to which purely cryptocurrency projects work.

Voting also takes place on a resource basis – at the expense of Tron Power resource, which is formed after freezing the TRX crypto on Bandwidth or Energy. That is, it is not just a choice of the "richest". It is a choice of those who invest the most in the ecosystem at the time of voting. In gratitude, Tron rewards its most active investors not only with resources, but also with the opportunity to "steer" the process. Democratic and fair, we think.

Especially if you consider that in the Tron ecosystem, 27 nodes can have the status of super representatives , and every 6 hours this status passes to new nodes. During these 6 hours, the super representative earns his TRX honestly. Unlike the mining method, when a block is formed, for example, in Bitcoin, every 10 minutes, in the Tron network it is created every 3 seconds. After the formation of a new block, the super representative receives a reward - 32 TRX.

Decentralize and Develop

Another asset where you can invest crypto and tokens of Tron is a decentralized application (dApps) development platform. In fact, the platform was originally created for this purpose. Today, Tron offers developers a simple, efficient platform with low-cost transactions for creating a variety of dApps not only in the field of content and entertainment, but also for the decentralization of finance.

You can develop new applications or use ready-made ones to perform the following tasks:

· search for optimal options for token exchange and bridging;

· lending and borrowing;

· decentralization of finance;

· rent and provision of Energy resources to network participants;

· playing arcade games to earn tokens;

· gaming applications with various functions, etc.

This is far from a complete list – dApps can be used in various online projects: social networks, advertising, games, banking, online sales, the real estate market, and so on ad infinitum. Moreover, the number of dApps is increasing literally every day.

The list of existing dApps in the Tron network can be found on any exchange. They also accompany the information in the form of a table with Tron analysis dApps by number of users, balance, trading volume per day, week, month, etc.

To understand what funds are circulating in this area, we will give an example from the analysis of the best Tron dApp by balance. Over a 7-day period, one of the apps that became the leader in asset value had a value close to $12 million as of the day of writing this article.

Buy, Sell, Exchange

You have virtually no restrictions in using Tron crypto. In addition to transaction fees and other procedures described above, you can trade the TRX currency itself, exchange it, lend it, and conduct other financial transactions, almost like with fiat currency. The only difference is that there will be no intermediary between the participants in the trading and exchange of TRX. This means that all these transactions will be much cheaper than similar transactions with fiat currency.

To sum it up, let's define for what purposes you can use the TRX cryptocurrency, which adapts the Tron digital ecosystem for entertainment information:

· to pay for access to the content you need, which goes directly to the creators of this content;

· DApps developments hosted on the platform, which in turn can be used to pay for blockchain services or exchange other cryptocurrencies;

· to pay for goods and services outside the Tron network;

· as a means of accumulation for further investment;

· to obtain additional Energy by blocking its assets;

· to purchase additional Bandwidth Points;

· to participate in the management of the blockchain platform by “freezing” their own assets for a certain period.

From our previous publications and this article, you have understood that TRX is the main currency in the Tron network . But there are also additional tokens TRC10, TRC20 (and tokens of this standard) that participate in transactions.

TRC-721 and TRC-1155 tokens perform additional functions, supporting network decentralization and improving communication.

All technologies supported by the Tron ecosystem are focused on the main cryptocurrency TRX (Tronix). This token is the basic unit for all accounts of all participants of the eco-platform. The cost of other tokens depends on the current value of the main currency.

You can become the owner of an additional volume of native Tron crypto by exchanging other cryptocurrency or fiat assets in various online exchangers, or by receiving payment for services in this currency to the Tron wallet.