TRON (TRX) is a decentralized blockchain-based operating system developed by the Tron Foundation and launched in 2017. Initially, TRX tokens were ERC-20-based tokens deployed on Ethereum, but they transitioned to their own network a year later. The project was originally created to provide full ownership rights to digital content creators. Its primary goal is to assist content creators, who typically receive only a small portion of the revenue, by offering them greater rewards for their work. This is achieved by enabling content consumers to reward creators directly, bypassing intermediaries such as YouTube, Facebook, or Apple. The TRON software supports smart contracts, various blockchain systems, and decentralized applications, also known as dApps. The cryptocurrency platform employs a transaction model similar to that of Bitcoin (BTC), namely UTXO. Transactions occur in a public ledger, allowing users to track the history of operations. Consequently, the platform aims to create a decentralized Internet and serves as a tool for developers to create dApps, offering an alternative to Ethereum. Users can develop dApps on the TRON network, offer content, and receive digital assets as compensation for their efforts. The ability to create content and share it freely without concern for transaction fees is a significant advantage of TRON.

TRON was established by Justin Sun, who currently holds the position of CEO. With educational credentials from Peking University and the University of Pennsylvania, Sun was acknowledged by Forbes Asia in its 30 Under 30 list for entrepreneurs. Born in 1990, Sun has also been linked with Ripple, having served as its chief representative in the Greater China region.

TRON has established itself as a platform where content creators can connect directly with their audiences. By removing centralized platforms—such as streaming services, app stores, or music sites—it aims to reduce the commission losses typically incurred by creators to intermediaries. This approach might also lower the cost of content for consumers. As the entertainment industry becomes increasingly digital, TRON could be well-positioned to apply blockchain technology to this sector. The company boasts a talented and experienced global development team, with members drawn from major firms like Ripple Labs. Lastly, while some blockchain projects may lack transparency regarding their development plans, TRON distinguishes itself by providing a clear roadmap outlining its intentions for the coming years.

TRON has a total supply of just over 100 billion tokens, with approximately 71.6 billion of these currently in circulation. During the 2017 token sale, 15.75 billion TRX were allocated to private investors, while an additional 40 billion were designated for initial coin offering participants. The Tron Foundation received 34 billion, and a company owned by Justin Sun acquired 10 billion. Overall, this distribution resulted in 45% of the TRX supply being allocated to the founder and the project itself, while 55% was distributed among investors. Critics contend that this ratio is significantly higher compared to what has been observed with other cryptocurrency projects.

TRON employs a consensus mechanism identified as delegated proof-of-stake. TRX holders have the option to freeze their cryptocurrency to obtain Tron Power, enabling them to vote for “super representatives” who function as block producers. These block producers earn TRX rewards for verifying transactions, which are subsequently distributed among those who supported them through their votes. TRON asserts that this strategy enables its blockchain to achieve elevated levels of throughput.

TRON can be purchased from numerous exchanges where it is listed, such as Poloniex, Bancor, KuCoin, Binance, Bitfinex, Coinbene, among others. However, it is not supported by Coinbase. Learn about converting your fiat currency to Bitcoin, an ideal gateway for acquiring altcoins, on Eulerpool.

The data on the TRON network is freely accessible without a central authority. Content creators are rewarded with TRX tokens for their intellectual efforts. TRON facilitates the creation of tokens by content developers, which can be utilized within their own applications. TRON also hosts decentralized games on the network, enabling players to directly support and reward creators with digital assets. The ecosystem is structured in three tiers, ensuring the efficient and robust operation of TRON. The architecture consists of: * Storage Layer: This layer securely stores network data, blockchain state, and historical data. Its primary purpose is to organize all types of ecosystem data. * Application Layer: Developers play a crucial role in this layer. TRX is used to create applications and develop wallets. * Core Layer: This layer processes various instructions, which can only be written in two programming languages: Solidity and Java. The core layer computes these instructions, processes them, and sends them to the Tron Virtual Machine, where the logic is executed, and dApps are deployed. A key network protection feature, and one of its distinctive elements, is a delegated Proof-of-Stake (dPoS) system, serving as an alternative to the Proof-of-Stake and Proof-of-Work consensus algorithms. This gives TRON a competitive edge by being more energy-efficient. Additionally, its layered architecture allows TRON to process more transactions simultaneously than Proof-of-Work (PoW) systems. According to the development team, TRON boasts higher throughput, capable of processing up to 2,000 transactions per second without fees, making network transactions feeless. TRON is a blockchain-based operating system designed to make this technology suitable for everyday use. While Bitcoin can handle approximately six transactions per second and Ethereum up to 25, TRON claims that its network can support 2,000 TPS. To learn more about this project, check out our comprehensive analysis on Eulerpool. This project is best described as a decentralized platform centered around content sharing and entertainment. One of its most significant acquisitions in this realm was the purchase of the file-sharing service BitTorrent in 2018. TRON’s objectives are divided into six phases, including delivering straightforward distributed file sharing, fostering content creation through financial incentives, enabling content creators to launch personal tokens, and decentralizing the gaming industry. TRON is also recognized as one of the most popular blockchains for developing DApps.

In April 2022, the CEO of TRON, Justin Sun, revealed intentions to introduce an algorithmic stablecoin named Decentralized USD or USDD. This stablecoin employs an automated balancing strategy that involves burning $1 worth of TRX to mint 1 USDD. The USDD is supervised by the TRON DAO Reserve, which is tasked with maintaining its stability relative to its collateral value, as well as determining the annual percentage yield (APY) offered for users staking USDD. As of the current writing, users receive a 30% yield on staked USDD. USDD has faced criticism for closely mirroring the design of UST, Terra’s algorithmic stablecoin that precipitated a bank run and the crash of the Terra ecosystem. Yet, certain features distinguish it, notably the choice to use a guaranteed over-collateralized framework as opposed to UST's under-collateralized model. The cryptocurrencies serving as collateral within the USDD protocol include TRON, Bitcoin, USDC, and Tether. The minimum collateral ratio for USDD is set at 130%. Thus, the collateral value deposited in the protocol's cryptocurrency reserves is intended to be higher than the value of USDD circulating in the market. This aims to reduce the likelihood of a sustained depeg of USDD. Despite the 130% minimum collateral ratio, the USDD is currently secured by collateral reserves collectively valued at over three times the circulating USDD. The objective of the TRON DAO Reserve is to amass a $10 billion treasury to support USDD’s value. A fundamental component of USDD’s stability is the role of Super Representatives, which are TRON’s institutional partners. These incentivized entities can influence trading to mitigate potential price volatility for USDD. For example, if USDD’s price falls below $1, the super representatives may burn part of their USDD holdings to mint TRX, restoring USDD's price to its target value. Despite these stability mechanisms, USDD has encountered its share of volatility. In June 2022, its price dropped 9% relative to the value of 1 USD. In response, the TRON DAO Reserve injected $650 million worth of USDC into USDD's collateral reserve.