The cryptocurrency market is flooded with thousands of altcoins. Out of these, only a few like Tron have been able to stay relevant and withstand price fluctuations for a good amount of time.
So, if you are planning to invest in Tron, here are some things worth your attention:
1. What is Tron?
Let’s start with the basics. Founded in 2017 by the Singapore-based Tron Foundation, Tron is a decentralised operating system that uses the features of blockchain and peer-to-peer technology. One can create decentralised applications and share media content over this platform.
Tron was initially developed on the Ethereum blockchain and migrated to its own network in 2018.
The native currency of Tron is Tronix (TRX), the smallest unit of which is called Sun. TRX currently ranks at number 14 in the crypto markets. To buy Tron in India, know its conversion rates and prices.
2. Why was Tron created?
At present, almost all media platforms are controlled by middlemen. They have a say in the distribution and profits of the entertainment content. Tron was created to do away with this interference of the middlemen and transform the way content is distributed and consumed.
It aimed to give total ownership of the content to its creators. By removing the intermediaries, it allows content creators to let people consume their content directly through the Tron network using the TRX tokens. Additionally, the content creators are also rewarded with TRX for uploading content.
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3. How is Tron different from other cryptocurrencies?
One of the biggest differences between Tron and other digital currencies is that it cannot be mined. The reason for this is that there is no maximum supply of this crypto. All the 100.8 billion TRX already exist leaving no possibility for mining.
However, you can earn TRX by mining Ethereum or Bitcoin if you have a graphics processing unit. The rewards generated by Ethereum will be paid back to you in the form of TRX.
4. Which are some of the top features of Tron?
Some of the most significant features of Tron include:
- Proof-of-Stake system: This allows Tron to execute more transactions every second. It makes Tron more energy-efficient as compared to other cryptocurrencies.
- Freedom of data: Content creators have absolute freedom to upload, distribute, and share content. This content sharing is completely liberalised and unrestricted.
5. How does the Tron infrastructure work?
Tron’s infrastructure is divided into three layers. These are:
- Core layer: This includes several modules like smart contracts, consensus, and account management.
- Storage layer: This includes blockchain storage that supports byte arrays, singular get, put and delete, etc. using the Snappy algorithm.
- Application layer: This layer allows developers to create a wide range of dApps and customised wallets on Tron through smart contracts.
6. Which are some of the most secure Tron wallets?
Tron wallets are software that can store TRX. They are available in many forms including:
- Guarda and Atomic wallet for desktop
- Trezor wallet for hardware
- Tronlink, which is a Google Chrome extension.
7. What are some benefits of paying with TRX?
Using TRX to make payments has certain clear benefits including:
- The transactions are feeless.
- The Tron network can support close to 2,000 transactions every second. This is much faster compared to Ethereum’s 25 transactions and Bitcoin’s 3-6 transactions per second. This is comparable to the fast transaction speed of Litecoin. If you want to invest in Litecoin, know the Litecoin to INR rates.
- TRX can be easily used to make payments accessing content. These payments are directly transferred to the accounts of the content producers. From there, these payments can be easily exchanged for other cryptocurrencies.