Tron Review 2024: Beginners Guide to TRX

The Tron website says it is the "fastest-growing public chain." Fair enough. Perhaps Tron rightly deserves bragging rights with over 160 million registered accounts, 5 billion+ transactions, and over 7.5 billion core tokens transferred. 

Do these impressive figures mean that Tron is better than, or different from, other reputable decentralised chains, or is it another swaggering ego trip of numbers set to sway our opinions?

This article is an unbiased review of the Tron network. We will do our best. The goal is to find facts and figures and help you decide if Tron is the next best thing to crypto heaven. Or, we'll discover if it's yet another crypto project determined to climb the crypto version of Everest and beat the competition to the top.

"Sun Network: DAppChain is TRON's sidechain project. The goal is to help DApps to operate on TRON with lower energy consumption, faster speed, and enhanced safety, providing unlimited capacity for TRON's main network." (Source: Tron)

Tron TRX Summary

Tron TRX Review: Summary 

Tron (TRX) is a decentralised blockchain launched in 2017 and developed by the Tron Foundation. Tron's goal was to become a more efficient layer-one blockchain than existing networks, and have enjoyed a level of success in terms of developer activity and adoption.

The Key Features of Tron are:

Tron has three core features: -

1. High-Throughput: The TRONPROTOCOL has fast transaction speeds of 2,000 TPS.
2. High-Scalability: The TRONPROTOCOL can accommodate a large user base, and smart contracts enable diverse ways of deploying smart contracts.
3. High-Availability: The TRONPROTOCOL has intrinsic value, a robust and reliable network structure, and user assets. The decentralised proof of stake (DPoS) enables an effective rewards distribution system.

A Brief History of Tron

Who Created Tron and Why?

Tron (TRX) is a blockchain launched in 2017 and developed by the Tron Foundation to create a decentralised internet. The CEO, Justin Sun, initially deployed TRX tokens (ERC-20) on the Ethereum network but later moved away. It was probably a decision that determined the success of the project.

The Tron Foundation launched the project intending to give ownership rights to content creators, notably for digital content. Content creators can connect directly with their audience, which allows them to maximise and monetise content more efficiently.

If we consider how we stream content via the leading tech giants, it's an unfair system. For example, YouTube can randomly decide to close a user's account and choose to censor certain content while promoting others.

Facebook can decrease reach or, worse, ban the content creator from posting or commenting in their group. Come on, Mark Zuckerberg, do you genuinely think your big-boy micromanaging approach is fair to your users? 

The problem is we do not own our content. Content creators, like musicians, struggle to make a living when the streaming tech giants like Spotify and Apple stomp all over uploaded content with an "it's mine now" attitude. They pay content creators a few peanuts for their work whilst they make the lion's share for doing, well, not much at all, other than being "big." 

You know what I am talking about.

For this reason, Tron sought to become a disruptor in an unbalanced playing field. You, me, and content creators worldwide should be glad about that, and the tech giants should watch their backs and not rest on their considerable laurels.

What is the TRON Network

Tron supports dApps, smart contracts and numerous blockchain systems. It uses the account-based model , a transaction model similar to Ethereum, with a transparent public ledger for anyone to track transaction history. Anyone can build and develop dApps on the Tron network, and if users provide and share their content, Tron rewards them with digital assets.

The TRON ecosystem includes a blockchain explorer, lending platforms, DEXes, wallets, and even a decentralised oracle.

Many of the talent team on Tron are highly experienced individuals from projects such as Ripple Labs. 

"Since TRON DAO was founded, it has upheld its original faith of decentralizing the Internet, working hard to change the world with technology." (Source: Tron)

What is Tron's Technology?

Tron adapts a 3-layer architecture divided into Storage Layer, Core Layer, and Application Layer. The TRON protocol adheres to Google Protobuf, which intrinsically supports the multi-language extension. (Source: Tron Whitepaper).

Tron's stack-based virtual machine (TVM) has an optimised instruction set. Solidity is the smart contract programming language for dApp developers.

The TVM connects with development systems to provide a custom-built, secure, stable, and efficient blockchain system for developers worldwide.

How does the TRON Network Work?

The Tron network uses a delegated proof-of-stake (DPoS) consensus mechanism. Tron users vote for “super representatives” (SRs) who earn fees by validating network transactions. Due to the decentralised nature, the Tron users have governance on the network, and nobody has control over more than one network node.

Tron uses a 3-layer architecture: -

1. Core
2. Storage
3. Application

This architecture helps reduce the typical latency associated with more conventional networks and the high transaction costs.

What is Tron (TRX)?

The Tron (TRX) token is for rewarding users for creating and sharing content such as music, videos and photos. TRX is also used for online gaming as a currency, for powering lending platforms and decentralised exchanges.

Tron is an open-source project using permissionless protocols and tools to deliver global content to its users and, additionally, TRX is used for smart contract-based financial projects.

TRX holders have governance on the network. 

Tron’s Periander Upgrade

In July 2023, Tron released Great Voyage v4.7.2 (Periander), an upgraded version of its mainnet. The upgrade introduced significant improvements in four areas:

Advanced stake 2.0 mechanism

Two important governance proposals for TRON stake 2.0 are part of the upgrade. The first proposal allows users to withdraw their unstaking requests that are still in progress. The second proposal empowers users to customize the lockup period for delegated resources according to their individual needs.

Compatibility with Ethereum's EIP-3855

This new governance proposal ensures the compatibility between Tron and Ethereum's virtual machines while reducing the associated costs to deploy and use smart contracts on the Tron network. The company hopes this will attract more developers to and promote enhanced interoperability between Tron and Ethereum ecosystems.

Streamlined smart contract interface calling

As part of this upgrade, Tron has optimized triggersmartcontract and triggerconstantcontract, two interfaces for calling smart contracts, to provide developers with estimated transaction fees for deploying their contracts. Tron said this paves the way for the creation of more high-quality DApps.

Revamped P2P network module

Four key functionalities were introduced:

• The upgraded network now incorporates a pre-detection mechanism for nodes pending connection to filter out invalid connection requests.
• The implementation of the DNS protocol improves the platform's availability by enabling the discovery of active nodes that are ready to connect to the Tron network.
• The network now supports the IPv6 protocol, a crucial development that enhances the scalability of Java-tron's network architecture in the future.
• The introduction of message compression before transmission reduces the bandwidth requirements for Java-tron, leading to lower operational and maintenance costs.

How Do You Get Free Tron (TRX) Transaction Fees?

Are Tron (TRX) transaction fees really free? Well, they can be.

"TRON network generally does not charge fees for most transactions; however, due to system restrictions and fairness, bandwidth usage and transactions do take in certain fees." (Source: Tron)

1. Tron issues 5,000 FREE bandwidth points daily to users. You can freeze TRX to get more bandwidth points if you need more. The amount of TRX required is the number of bytes (10 SUN: 1 TRX = 1,000,000 SUN: See below for an explanation of SUN).
2. Smart contracts use "energy" and require bandwidth points for broadcasting and confirming transactions.
3. Query transactions are FREE, as no energy or bandwidth is required.

TRON network also defines a set of fixed fees for the following transactions:

• Creating a witness node: 9999 TRX
• Issuing a TRC-10 token: 1024 TRX
• Creating a new account: 0.1 TRX
• Creating an exchange pair: 1024 TRX

(Source: Tron Whitepaper)

Tron (TRX) transactions are exceptionally low compared to other crypto networks. For example, you could pay hundreds of dollars in transaction fees on the Ethereum (ETH) network.

What is The Sun Network?

"SUN's main purpose is to exist as support for the TRON protocol, which aims to create a decentralized internet ecosystem. SUN specifically focuses on DeFi and aiding its uptake and infiltration on TRON's blockchain." (Source: CoinMarketCap)

TRX Price and Potential

You would have been hiding under a rock not to know we've been in a crypto bear market for a good while. 

In June 2022, Tron (TRX) was at a high of $0.0806 when it suddenly dropped below $0.0602. Since then, it's been a bit of a rocky road. The lowest price was $0.05 in November 2022, and it's been a steady ascent since then.

Crypto "experts" predict the Tron (TRX) price could be as high as $0.14 by the end of 2023. However, the crypto market moves in a swarm pattern, so Tron (TRX) price will greatly depend on whether the bear market moves aside for the bulls. 

In early 2018, Tron (TRX) spiked to an all-time high of just under $0.21. Many investors believe in the potential of the Tron project and support TRX (Remember, Tron has 161 million users). Tron still has a lot of work to do, but the signs are positive for the future of the project and the TRX token. 

Financial experts suggest that bear markets typically last two years or more, and we're about at that point. Other experts suggest that the crypto market correlates with the stock market. However, with a collapsing world economy, nobody can genuinely (or accurately) predict how things might go. 

How to Buy Tron Cryptocurrency

TRX is listed on 130+ cryptocurrency exchanges worldwide, including the majors like Binance, OKX, and Bitget. Every exchange is different, with various payment methods. On some platforms like Kraken, you can buy TRX with fiat currencies or exchange it for another cryptocurrency.

Whichever exchange you use, here is the protocol for buying with fiat money.

1. Ensure you have a suitable wallet to transfer your Tron (TRX) after purchase.
2. Depending on the exchange, you can purchase via the website or a mobile app.
3. Choose a payment method and check fees for purchasing (almost all payment methods insure a fee)
4. Find the ticker symbol Tron (TRX) on the crypto platform
5. Choose the amount of Tron (TRX) you wish to buy and click on "purchase" and pay.
6. Congratulations! You now own Tron (TRX)
7. Transfer the Tron (TRX) to your secure wallet

Ensure you keep your private keys safe from prying eyes and only transfer your Tron (TRX) back to an open exchange if you intend to trade or sell your holdings.

Where to Store TRX Tokens

Never leave your TRX tokens exposed on an open exchange because it leaves them vulnerable to hackers and insolvency risks. Always transfer them to a secure wallet when not trading or moving them. 

Multiple wallets allow storing your Tron (TRX) tokens, such as a hardware wallet like Nano Ledger S, Atomic, a hardware and desktop wallet, Tronscan, a web wallet or a Tron paper wallet. To learn more about Tron (TRX) wallets, read Tron (TRX) Wallets: 9 of The Best Storage Options.

Top Projects on Tron (Tron DApps)

The Tron network has many projects. Here is a brief overview of a couple: -

SocialSwap: SocialSwap is a community project on Tron. Its website says, "Get the best prices on Tron Blockchain. The smartest and easiest way to exchange your cryptocurrencies and to earn money passively with your cryptocurrencies on the Tron Blockchain." (Source: SocialSwap)

SocialSwap features low transaction costs, smart contracts, Limit Order, Fast Blockchain and Aggregation Protocols with "liquidity aggregation from multiple DEXes to ensure the best swap rates." SocialSwap also promises users can profit from up to 100% refund on trading fees.

The SocialSwap token serves as a deflationary measure with a continuously decreasing supply.

The Tron network has many projects. Here is a brief overview of a small handful: -

JustLend: (as seen on Dragon's Den) is a community lending platform. The premise is to borrow from family and friends securely and set terms and conditions of your own. 

JustLend have a three-step lending process: -

1. Create your campaign: Tell your story and let people know how they can help! On JustLend, you can borrow money for dreams, rainy days and everything in between.
2. Set your terms: You decide the interest rate and how long to repay the loan. (A not-so-humble brag: no one else in the UK offers that).
3. Invite your community: Share your campaign and feel the community's support, autonomy and power. Once you've reached your goal, the money is yours.    
   (Source: JustLend)

JustLend ensures the borrower repays the loan on time with automated payments, and they sort out the fiddly bits that nobody likes to do, such as organising loan agreements and payment tracking.

Tron Review: Closing Thoughts

Tron is a decentralised project with much promise. Low fees and fast transactions are always welcome when many projects are expensive and slow. For developers, the Tron network is ideal for creating smart contracts for diverse applications. 

It's tricky to assume that Tron is a unique project with a mass of potential, but, to date, the network has proved to be popular with users, developers and projects.

Tron (TRX) has a market cap of almost $7 billion and a trading volume of over $200 million. That's not small fry. Bitcoin has a market cap of over $500 billion, and Ethereum is $200+ billion, but they are at the summit of the crypto pile.

CoinMarketCap ranks Tron (TRX) in the top twelve listed cryptocurrencies. That's quite an accolade considering there are over 24,500 cryptocurrencies listed. Add to that fast speeds, scalability and high availability, and you have a crypto project with a good chance of continued success.

"DAppChain, sidechain of TRON: DAppChain is TRON's sidechain project. The goal is to help DApps to operate on TRON with lower energy consumption, faster speed and enhanced safety, providing unlimited capacity for TRON's main network." (Source: Tron)

Only time will tell if Tron (TRX) lives up to its loyal followers' expectations. As we traverse out of the bear market, that will be the ideal time to see how Tron (TRX) performs. If the project can gain more market capitalisation, there is scope for it to move higher in CoinMarketCap's cryptocurrency ranking.