For more than a year, digital currencies have dominated the financial news headlines even as many seasoned traders continue to be skeptical about its prospects in the market. TRON is one of the latest entries in the crypto world, and it has investors at the edge of their seats. Here we shall discuss what TRON is, how it works, its characteristics, and how you can invest in it.
What is TRON?
It is a cryptocurrency introduced in 2017 that was financed using an ERC-20 token. Towards the beginning of 2018, traders who possessed the token exchanged it for one located in the TRON network. After that, TRON tokens held their position in the network.
In its essence, TRON is a platform for sharing content using P2P and blockchain technology. It works like a futuristic social media platform that allows you to build and distribute content on the network. TRON coin is the currency you get paid in for creating and distributing your content, and people often refer to it as ‘TRX.’
TRON’s system lets you share your material with other users and also pays you for them. This is in stark contrast to generic social media platforms, like Twitter, Instagram, and Facebook, that make money out of your data.
Thus, while popular social media sites use our data for their own gains, TRON lets you control how much you share about yourself, and moreover, it compensates you for the content you create.
How does TRON work?
Similar to Ethereum, TRON’s protocol generates some cryptographic keys that dictate access to TRON and TRON token balances. The architecture of TRON consists of three different layers:
- Core Layer. This layer scans the Java or Solidity code and transfers it to the TVM, where it gets executed.
- Application Layer. This layer is used by programmers to build apps and wallets that are powered by TRON and can work with the software.
- Storage Layer. The segmentation of state and blockchain data takes place here.
The TRON network’s main principle is that there is no cost for all the data present there, and there is no central authority controlling it. Individuals who create content on this network receive digital assets in the form of TRX tokens as payment.
Creators can also build individual tokens that they can then use with their individual Dapps. The primary TRON token supports all user-created tokens.
The last stage of developing the network includes supporting games created by network members. Like the network, these have no central authority. Users can use their digital currency to show their appreciation for game creators if they wish to do so.
Characteristics of TRON
TRON has the following characteristics:
- Ready market. This is one of the finest qualities of TRON. The entertainment industry controls a vast portion of the world’s capital with an approximate valuation of $1 trillion. For several years, many content creators and artists have suffered at the hands of rich promoters and distributors. Since TRON runs in a decentralized environment, these people have some space to breathe as TRON gives them full control over their creations. TRON has received exceptional support from China, where the size of the market is huge due to it being the most populous country in the entire world. China is actively supporting the innovations brought about by TRON.
- Partners. TRON was created by Justin Sun, who is currently serving as the chief executive officer of Peiwo App. He is an expert in blockchain technology and has worked as the main representative of Ripple in China. Peiwo is one of the largest audio content community apps in China, and Sun has taken advantage of its large subscriber base by designing the app to be well-suited with the TRON protocol. Thus, users of this app can access TRON’s distributed features.
- Interface. Through TRON, it is possible to provide functionalities for content storage, credit sharing, development, and payment. It can, thus, improve the quality of gaming, entertainment, and casinos across the world.
How to Invest in TRON?
Let us look at the process of investing in TRON:
- First and foremost, you need to open an account on Binance. Remember, you cannot transfer money directly to Binance, so you need to set up a Coinbase account as well. When you register on Coinbase or deposit more than $100, you get $10 worth of Bitcoin.
- After setting up your Binance and Coinbase accounts, you can buy Bitcoin and transfer it to your wallet.
- Next, you need to transfer the Bitcoin from Coinbase to Binance. Open your Binance account and navigate to your wallet. Then, select Bitcoin and copy the Wallet Address, which you need to use while transferring the funds from Coinbase to Binance.
- You can purchase TRON coin after transferring Bitcoin to your Binance account. For this, you need to exchange your Bitcoin for TRON.
Risk and Challenges
While investing in TRON, you need to keep in mind that cryptocurrencies, in general, are not regulated and are highly liquid. The coin price is subject to sudden and rapid change, and transactions often get reported to moderators, resulting in price manipulation. Hackers often target investors, leading to the prices going up.
If you wish to hold large amounts of this currency, you can use a hardware wallet for the purpose. Since your coins are kept offline, they cannot be stolen by hackers. But, that being said, these wallets are expensive, and you still need to protect them from real-world dangers.
TRON is an affordable digital currency that can be potentially adopted by large industries in the future. But, that being said, it is a risky investment, and you should never put in more money than what you can afford to lose.