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What Is Tron? Introduction To TRX

Tron is a controversial blockchain platform that has a habit of grabbing headlines.

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Tron (TRX) is a blockchain platform launched as the foundation for a decentralized entertainment ecosystem. Created by Justin Sun, whose first venture is Peiwo — a pay-to-chat application already launched on the network — Tron focuses on expanding the market of decentralized digital content applications by making it easier to create and deploy them.

Adoption of blockchain technology is limited in part because of the difficulty many developers face in learning to build from scratch on entirely new protocols. Tron is designed to ease this transition and therefore hasten the decentralization of existing platforms and creation of new Dapps.

Tron will work in the same way that other content networks work: creators produce content and consumers purchase it. Other applications can be built and leverage the same resources, and the value of TRX hinges in part on the execution of code within the Tron network.

Peer-to-Peer Media Distribution

Tron is one of many efforts seeking to leverage the peer-to-peer nature of modern networks in order to allow content creators and distributors direct access to their consumers. YouTube, iTunes, and other centralized distribution networks have a significant choke hold on the digital content market, creating a barrier for independent content producers seeking distribution channels.

Various decentralized applications are planned for deployment on Tron to take advantage of the direct, peer-to-peer architecture of the network that eliminates the need for a middleman. One such application that has received a lot of attention is Gifto, created by Uplive, a highly influential and successful paid social media platform in Asia.

Both streaming entertainment and content delivery are massive industries. The content delivery network market alone is predicted to reach $30 billion by 2022, while the entertainment industry as a whole will exceed $2 trillion in the same period.

Tron Has Big Backing

Founder Justin Sun was previously the official representative of Ripple in China. His status has attracted the support of several high profile backers.

To start with, we have Jihan Wu, the Co-founder of BITMAIN. While Wu’s antics may occasionally cause his company PR issues, overall his endorsement of Tron seems to have done no harm, with the project raising $70,000,000.

Wu is not the only big name backing Tron. One of the world’s most successful transportation executives, Dai Wei, founder of Ofo, has invested in Tron. Moreover, BTCC.com founder Yang Linke and business mogul Yin Mingshan are also backing the project.

A total of $70 million was brought in for a token supply of 100 billion. For the first few months of trading, TRX struggled to break the 1 penny mark, but eventually went on to see all-time highs over $0.20.

Fake News

Tron has not been without its drama (if fact, some would say the company thrives on it). Rumors have circulated that Justin Sun dumped as many as 6 billion TRX at the all-time high, but an independent investigation found this to be false. Rumors of “pump and dump” scams can be damaging to any cryptocurrency and the crypto community has certainly seen enough of them. In the case of Tron, the high-profile individuals staking their reputation on the project has helped settle the resultant level of market uncertainty.

Web 4.0?

Most major shifts in Internet technologies have to do with either the delivery of content or the payment. The first iteration of the web was poor at facilitating value transactions.. With Web 2.0, we saw the introduction of secure payment channels and an advertising economy was born, which made use of personal data to sell more products.

With Web 3.0, as Justin Sun views it, we have seen content economics arise that give centralized control to delivery mechanisms. Content presented by Facebook or YouTube is essentially owned by those entities. Through cryptocurrency, this situation can be disrupted, and content producers can own the actual content they create, while deliverers can still earn a reward for their service.

A major step in this direction is the leveraging of blockchain to eliminate the need for centralized servers. When content delivery itself can be fully decentralized, the cost of that delivery can be reduced and new ecosystems that eliminate the middleman can prosper. Tron represents one means by which this vision can be realized: eventually the centralized content delivery networks of today will give way to the decentralized content multiverse of tomorrow.

TRX Summary

  • Tron aims to:
    • Decentralize content delivery
    • Give control to content creators
  • Tron has backing from big names in China as well as influential leaders in the crypto space like Jihan Wu
  • Tron provides developers a leg-up in building decentralized applications
  • The TRX token is required to execute code on the Tron network
  • Tron already has a number of decentralized applications built on the network

 

P.H.Madore contributed to this article.

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