Every year, we witness the launch of a number of new crypto projects, some more original than others. Even though they make use of the same underlying technology, the blockchain, these projects have different purposes and long-term plans.
Not all of them focus on reshaping and decentralizing the financial system as Bitcoin did. We have crypto projects oriented towards the smart economy and building a digital identity through smart contracts and dApps or improving cross-border payments, for example.
The platform we’ll be discussing today is called TRON and it’s unlike any other blockchain-based platform you’ve heard of so far. With its innovative approach towards artists and the entertainment industry, TRON puts traditional social media to shame!
TRON is a world-leading blockchain-based decentralized protocol that aims to construct a worldwide free content entertainment system with the blockchain and distributed storage technology. The protocol allows each user to freely publish, store and own data, and in the decentralized autonomous form, decides the distribution, subscription, and push of contents and enables content creators by releasing, circulating and dealing with digital assets, thus forming a decentralized content entertainment ecosystem. (Tron.network)
Nowadays, the entertainment industry is led by social media giants of the likes of Facebook, Instagram, YouTube, Spotify, Google, etc. If you’re a content creator and want to share your work with the world, from videos, artwork, music, to a simple website, these platforms are your ticket to fame.
The problem is that these “middlemen” don’t offer their services for free. First of all, they’re the ones who decide how much you’ll earn based on the content you’ve created and ask for a percentage of the whole profit. They also retain the right to censor and control your work.
The solution comes in the form of a blockchain-based platform called TRON, a decentralized entertainment ecosystem where creators have full control and authority over their work and earn the full amount of profit based on the outreach of their content (e.g. likes, view, clicks, etc).
This next-generation social media makes giant corporations and intermediaries of any sort redundant. The creators receive compensation for their effort that has been evaluated by the TRON community, protection from data theft, and are free from unreasonable censorship.
At first, TRX was built on Ethereum’s ERC20 protocol. With time, as the TRON blockchain continued to grow, the token migrated to the TRON main net.
TRC-10 and TRC-20
TRC-10 is a technical token standard supported by TRON blockchain natively, without the TRON Virtual Machine (TVM). TRC-20 is a technical standard used for smart contracts on the TRON blockchain for implementing tokens with the TRON Virtual Machine (TVM). It is fully compatible to ERC-20. (Tron.network)
TRON allows users to issue their own tokens or TRC-10 at the expense of 1,024 TRX. The process is quite straightforward. The issuer needs to provide details like the name of the coin and a short description, its capitalization, circulation duration, website, the exchange rate to TRX, bandwidth consumption, etc.
An example of a TRC-10 token is the BitTorrent token (BTT). These tokens are accessible by API and smart contracts.
TRC-20 tokens have a slight learning curve compared to TRC-10. They’re only accessible within smart contracts and used for implementing more complex functions.
From a cost perspective, TRC-10 tokens have transaction fees that are 1000 times lower than TRC-20, but carry bandwidth costs for API transfers and deposits. Transfers and deposits in smart contracts for TRC-10 tokens cost both bandwidth and energy. (TRON’s White Paper)
TRON’s Delegated PoS
The TRON blockchain uses a Delegated Proof of Stake (DPoS) consensus mechanism. Let’s explain how this works.
On the TRON network, users holding TRX can voluntarily lock (freeze) them in exchange for Tron Power (TP) that gives them voting rights. Every 6 hours, these users participate in the voting selection of 27 Super Representatives (SRs) from 127 candidates.
The SRs are the ones who produce blocks on the blockchain, do the bookkeeping, and obtain rewards. To become a Super Representative you don’t need to create a special account. It’s the accumulation of votes that counts.
The reward for generating one block is 32 TRX. The TRON network generates a new block every three seconds so a total of 336,384,000 TRX is awarded to the 27 SRs every year. When the block is created, the reward is sent to a sub-account on the super-ledger. The SRs can withdraw their reward once every 24 hours and transfer it to their main account.
The high scalability of TRON is evident by the incredible transaction processing power of 2,000 transactions per second. Just for comparison, Ethereum’s blockchain is able to process only 15 transactions per second.
Another feature characteristic of TRON is the three different types of nodes: the Witness Node, Full Node, and Solidity Node:
Witness nodes are set up by SRs and are mainly responsible for block production and proposal creation/voting. Full nodes provide APIs and broadcast transactions and blocks. Solidity nodes sync blocks from other Full Nodes and also provide indexable APIs. (TRON’s White Paper)
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