Tron is a smart-contract platform (such as Ethereum) that generally focuses on decentralized entertainment and media. Originally designed in Singapore, Tron is heavily influenced by its eccentric and controversial creator Justin Sun. Tron made a rise into being consistently in the top 20 cryptocurrencies in the world by market cap shortly after its launch in 2017. Having TRON be based on the popular programming language Java, it seems as though Tron is imitating some of the good decisions made by the Ethereum blockchain, focusing on the development experience.
By: Arthur Crowson | Mar 6, 2020 | Modified Apr 15, 2020
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You can buy Tron (TRX) at the following cryptocurrency exchanges:
All-Time High: $0.300363 USD (Jan. 05, 2018)
All-Time Low: $0.001091 USD (Sept. 15, 2017)
Circulating Supply: 66,682,072,191 TRX
Total Supply: 99,281,283,754 TRX
Transactions Per Second: 2000+ Tx/s. Tron network also has zero transaction fees.
A third of Tron’s token supply is held by the Tron Foundation. Although the foundation originally declared 33.25 billion Tron tokens as unavailable for use back in 2017, the lock associated with these funds expired in January 2020. TRX doubles as voting power to govern the network, if the Tron Foundation controls 33% of the tokens of the network, then this might be a level of centralization that is uncomfortable for some users.
The Tron Foundation possesses a large amount of funds at their disposal for funding any development efforts for the Tron network. The funds unlocked in early 2020 were worth nearly $450 million at the time.
Tron currently caters to roughly $55 million worth of real daily trading volume, according to CoinMarketCap. This places Tron consistently in the top fifteen cryptocurrencies; nevertheless, these trading levels are nowhere near those of Bitcoin.
Justin Sun founded Tron back in 2017. The initial coin offering (ICO) raised $70 million for the Tron Foundation. In its early days, Tron faced a number of allegations of plagiarism from other cryptocurrency projects and pundits.
In 2018, the TRX token was migrated from Ethereum to its own native blockchain. In the same year, the Tron Foundation acquired BitTorrent, a company that operates the massively popular peer-to-peer file sharing network under the same name. A separate token for BitTorrent was also eventually launched on the Tron blockchain.
The advantages of Tron over other smart contract platforms remain unclear, such as Ethereum, which is more developed than Tron. Currently, the price action related to TRX has clearly correlated with the promotion of Tron by Justin Sun and the Tron Foundation. While sideshows such as a canceled lunch event with the investing legend Warren Buffet attracted a lot of attention to the platform, it’s unclear what advantages Tron offers at a technical or fundamental level.
A key disadvantage of Tron is that Ethereum already exists, and Ethereum has much greater developmental and monetary network effects built around it. For Tron to have any substantial role in the market, it will need to delineate itself from pre-existing platforms.
Additionally, a basic function of most blockchain networks is to offer censorship resistance, which is provided by the particular network’s relative level of decentralization. Tron’s future is highly reliant on funding and promotion from a centralized source, namely Justin Sun and the Tron Foundation.
Tron is not a fork of Bitcoin. Although Tron borrows several of its architectural ideas and hallmarks from other popular protocols.
Tron was originally based in Singapore. However, the Tron Foundation also has offices in San Francisco, California.
Ethereum has much greater network effects around it, in terms of developers, ETH popularity, and novel project development. One key difference is the inherent scalability advantage that Tron gains by using a completely different governance mechanism. Besides this, there are few useful differences between Tron and Ethereum as smart-contract platforms.
Mining does not exist in Tron, as it uses a consensus mechanism called delegated-proof-of-stake rather than proof-of-work.
Yes, there is a limited supply of 100 billion TRX. However, it should be remembered that a high level of decentralization in a cryptocurrency network must be attained in order for this limitation on the supply of TRX to be credible.
Tron transactions typically take less than five seconds.
Yes, TRX has trading pairs with USDT, ETH, and BTC on KuCoin exchange.
Tron appears cheaper many other cryptocurrencies due to the much high supply of the TRX token. Bitcoin’s supply is limited to 21 million coins, whereas there exist 100 billion TRX tokens.
It’s impossible to predict the future price of any cryptocurrency; however, the lack of any major differences between Ethereum and Tron make it unclear as to how TRX will be able to outperform other platforms with a similar value offering.