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Let’s improve your knowledge about the crypto world by finding out what the TRON is, its origins, and how it works
What is TRON?
TRON is a decentralized, open-source blockchain platform that uses the TRX token (Tronix). It is designed for entertainment content that users can share without intermediaries. It focuses primarily on online games, virtual casinos, and other interactive applications. TRON also offers tools for creating new custom applications. The platform is also able to support blockchains and smart contracts of other projects. It also allows each user, and each computer to support the network operations, creating a convenient payment system. The Tronix cryptocurrency (TRX) was created in 2017 and is currently the 20th largest in the market.
History of TRON
TRON was founded by Chinese entrepreneur Justin Sun. His activity greatly affects the market and the price of TRX, so he is often called a marketing genius, and the project itself is criticized in the aspect of centralization. Justin Sun began his introduction to cryptocurrency in 2012.
He founded the platform intending to give people a place where content can be distributed for free. In July 2017, the TRON Foundation was founded in Singapore. From August 31 to September 2 of the same year, the company held an ICO to attract investment. TRON Whitepaper articles were created for this purpose. During the ICO process, the company raised about $70 million.
In December 2017, the source code of the Tron protocol was published. Then on May 31, 2018, the MainNet public network was released. This was the first step of the project towards creating a real decentralized social network. Same year but in October, the company launched a decentralized store for gaming and non-gaming applications. Today, the company continues to develop and test the financial system.
How does TRON work?
To understand how the TRON system works, you need to know what smart contracts, blockchain, tokens, ICO, transactions are. Let’s explain everything in simple words. The entire platform is based on a blockchain – a distributed database with complete duplication of information. It is a continuous sequence of blocks with information. The blocks follow one by one, forming a single branch with single blocks. Each block has a header with a link to both: the previous one and the next one. So, the information in the database is protected from forgery and hacking. The block stores information in the code form — smart contracts. This is an algorithm that allows participants of the TRON network to make automated transactions. The main principle of functioning is similar to transactions in the Bitcoin network but has some distinct features. The token transfer agreement takes effect when both parties sign the contract. Only if there are more than 50% of signatures, the contract comes into force. To implement smart contracts, the following conditions are required:
- Full mathematical description or Turing completeness;
- Using EDS methods with public and private keys for encryption;
- Storing contracts in decentralized, public, and reliable databases, such as blockchain;
- Reliability of the digital data source using an SSL certificate or other methods;
- A decentralized smart contract execution network, such as TRON and Ethereum.
ICO is a standard method of implementing smart contracts. During the TRX token ICO, depositors created a smart contract, according to which they sent money or cryptocurrency to the account of this contract, and received Tronix tokens in return. Thus, the Tron issue was partially produced.
Advantages and disadvantages of TRON
During the existence of the project, many crypto-enthusiasts and experts of the online entertainment market have spoken positively about the TRON platform. They say that transactions are carried out quite quickly on this platform and it has a large community. They also noted that the platform has good security, an honest ISO, and an excellent perspective. But since the successful launch of the ISO, the TRON project has also been criticized. Experts have not spoken about the platform in a negative light, but many of them note that it is too early to talk about the prospects. Most users note that the platform is developed rather slowly, has technical unreasonableness, and does not have a special demand for the service. Also, the disadvantage of TRON is that the developers are entitled to too much reward.
However, by market value, this coin has managed to leverage mutual interest and particular technological characteristics to become one of the most prominent cryptocurrencies. The growing portfolio of partnerships has built trust in the platform, and its collaboration with a branch of the Chinese government is likely to bear great results. The aim of this project is to create a platform for storing decentralized user-generated content. For developers, this is a unique proposition, offering enough to suffice.