What is TRON Network (TRX)?

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What is TRON Network (TRX)?Founded in 2017 by Justin Sun, the TRON Network is a decentralized blockchain-based operating system supporting smart contracts, blockchain systems, and the development and deployment of decentralized applications.

3 minMar 13, 2024

What is TRON Network (TRX)?

Founded in 2017 by Justin Sun, the TRON Network is a decentralized blockchain-based operating system supporting smart contracts, blockchain systems, and the development and deployment of decentralized applications. As a third generation layer one protocol, TRON allows for both faster and cheaper transactions, driving more network activity and a better overall user experience.

Notably, TRON is the largest host of USDT, with just over 50% of the circulating supply (approximately $49 billion USD) secured on the network.

TRON’s mainnet launched in 2018, and the network completed full decentralization in December 2021, led by a community-governed DAO.

TRON Network - in their own words

TRON (TRX) is a decentralized blockchain-based operating system developed by the TRON Foundation.

Initially, the project was created with the aim of providing full ownership rights to makers of digital content. The main goal was to help content creators, who would receive fractions of the total income, and encourage them with more rewards for their work. This was accomplished by inviting content consumers to reward content makers directly (without intermediaries like YouTube, Facebook or Apple).

The TRON software supports smart contracts, various kinds of blockchain systems, and decentralized applications aka dApps. The cryptocurrency platform uses a transaction model similar to Bitcoin (BTC), namely UTXO. Transactions take place in a public ledger, where users can track the history of operations.

The platform was built to create a decentralized Internet and serves as a tool for developers to create dApps, acting as an alternative to Ethereum. Anyone can create dApps on the TRON network, offer content, and in return receive digital assets as compensation for their efforts. The ability to create content and share it openly without hesitation regarding transaction fees is an undeniable advantage of TRON.

TRX utility?

TRX is the native token of the TRON ecosystem, and serves a diverse range of functions:

Transaction Fees and Bandwidth: TRX is used to pay for transactions on the TRON network. Users can also freeze their TRX tokens to gain bandwidth, allowing them to execute transactions without paying gas fees.

Voting and Governance: TRX holders can participate in the governance of the TRON network through voting. By freezing their TRX, users obtain TRON Power (TP), which can be used to vote for Super Representatives, responsible for validating transactions and creating blocks.

Resource Allocation: Apart from bandwidth, freezing TRX also grants users energy, which is necessary for executing smart contracts on the TRON network.

Staking and Earning Rewards: By staking TRX, users are rewarded for helping to secure the network.

What does this mean for USDT?

TRON USDT is accessible for exchanges, fintechs, institutional traders, and developers, and provides a fast, low-cost alternative to operating on the Ethereum network. This enables several use-cases, including:

Near instantaneous programmatic payments, anywhere in the world

Trading, borrowing, lending etc. through blockchain applications

Payments for e-commerce, NFT marketplaces, gaming, and more

For more on TRON, check out their Medium page here.

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written byUphold Team