What is TRX?
Tron (TRX) is a blockchain-based platform running on a decentralized protocol, the purpose of which is to create a free content entertainment ecosystem leveraging both blockchain and distributed database storage technology.
Tron aims to expand the decentralized digital content market by allowing developers to create and publish apps on the Tron network. TRX acts as the proprietary token on the Tron network, and it’s full name is pronounced Tronix.
TRX was originally forked from EthereumJ, and the native coding language used to implement code on the blockchain is Java. Because Java is used, it is much easier for developers already versed in the Java coding language to adopt the platform and begin building content on the Tron blockchain.
Tron has a 3 layer architecture consisting of a Core, Storage, and Application layer. The Tron protocol adheres to Google protobuf to support multi-language extension, which allows programs to communicate with each other.
Within the Core Layer, there are various modules including smart contracts, account management, and consensus. A stack-based virtual machine has been implemented on TRON and an instruction set is used for interaction between the two.
Solidity was chosen as the language used for smart contract programming, with plans to support more advanced languages in the future. TRON uses a Delegated Proof of Stake (DPoS) consensus mechanism, which was innovated to meet certain requirements.
A unique distributed storage protocol was designed specifically for TRON consisting of Block Storage and State Storage. The design uses a graph database to meet higher standards for diversified data storage.
The blockchain storage uses LevelDB, which is developed by Google. The chosen method allows for high performance and an array of useful coding features to ensure quality blockchain storage.
The state storage portion has a KhaosDB in the full-node memory that can be used to store every new fork chain generated within a specified period of time. This allows active witnesses on the network to swiftly switch their own active chain into a new main chain when required.
Because TRON has the ability to create and deploy smart contracts, there are endless opportunities for developers to create highly versatile decentralized application on the TRON network.
Delegated Proof Of Stake - 27 Super Reps
In a Proof-of-Stake consensus, the token holders lock their token balance up so that the tokens cannot be used. By doing so, the token holder becomes eligible to be voted in as a block validator. Validators take turns proposing and voting on the next block that will be confirmed on the network.
In most PoS consensus systems, the lack of rotating votes incentivizes people to hoard large quantities of tokens, which allows too much influence over the entire system. That is why Tron has implemented these proof of stake concepts.
The innovation of the consensus mechanism comes in the form of 27 Super Representatives on the network. TRX account holders who choose to freeze their account are able to vote for a selection of SR candidates every 6 hours. With the top 27 candidates being assigned as Super Representatives.
Voters are able to choose the criteria by which SRs are chosen, the reason for this is to increase the adoption of TRX while allowing for a more democratized and decentralized ecosystem overall. SR accounts are normal accounts, but their voting weight determines whether or not they are able to produce blocks.
Bandwidth Points & Energy
There are two point systems built into the TRON blockchain, bandwidth points, and energy. Ordinary transactions only cost bandwidth points, but smart contract operations cost both energy and bandwidth points.
Users gain bandwidth points from freezing TRX, and they also receive 5000 free bandwidth points daily. When a transaction is broadcast on the TRON network, the data is transmitted and stored in form of a byte array. The bandwidth points consumed by one transaction are equal to the number of transaction bytes multiplied by the bandwidth points rate.
Points consumed = Number of transaction bytes X bandwidth points rate.
Once TRON smart contracts are written and tested, they are compiled into bytecode, and then deployed on the TRON network for the Tron Virtual Machine (TVM) to compile. The function of energy used in smart contract deployment can are listed below;
1. Dynamic energy from freezing 1 TRX is 50,000,000,000 (Total Energy Limit) / (Total Energy Weight)
2. Energy limit is the daily account energy limit from freezing TRX
3. Remaining daily account energy from freezing TRX is calculated as Energy Limit – Energy Used
4. Fee limit in TRX is set in smart contract deploy/trigger call
5. Remaining usable TRX in the account
6. Energy per TRX if purchased directly ( 10 SUN = 1 Energy) = 100,000 SRs can vote on adjustment.
TRON Virtual Machine (TVM)
The TRON Virtual Machine is a turing complete virtual machine, which was specifically developed for the TRON ecosystem. The goal of the TVM is to provide developers a custom-built blockchain system that is efficient, convenient, stable, secure, and scalable.
TVM was initially forked from the Ethereum Virtual Machine, and that allows TVM to connect almost seamlessly with the existing smart contract development system on the Ethereum Virtual Machine.
The TVM compiler translates smart contracts from the TRON network into bytecode that is readable and executable on the TVM. After the code has been complied, the TVM processes the data, and accesses blockchain data to execute the proper functions through the interopation layer.
Token Standards - TRC-10 & TRC-20
There are two token standards that operate on the TRON blockchain. One is known as TRC-10, the other is called TRC-20. The difference between the two tokens are that, the TRC-10 tokens can be accessed through APIs and smart contracts. On the other hand, the TRC-20 tokens allow for interface customization, but they are only accessible within smart contracts.
TRC-10 tokens can be issued on the TRON network in much the same way ERC-20 tokens are issued on the Ethereum blockchain. The TRC-10 standard allows token issuance on the TRON blockchain. Token names can be specified, total capitalization, the exchange rate to TRX, circulation duration, and many other parameters.
TRC-20 is a technical standard developed for the use of smart contracts implementing tokens that are supported by the TRON Virtual Machine. TRC-20 tokens are fully compatible with ERC-20 tokens.
Tron & BitTorrent
In July of 2018, there was an announcement that Tron would be purchasing BitTorrent, one of the largest file sharing services with more than 100M users. A few months later, the BitTorrent team announced their plans to launch the BTT (BitTorrent Token) on the Tron network. This partnership has allowed millions of new users to be introduced to blockchain technology, and provides incentive to users to spend and earn crypto by sharing files.
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Investing in cryptocurrencies and Initial Coin Offerings or ICO’s is a highly risky as well as speculative financial maneuver. This article is not a recommendation by Black Moon Research or the author to invest in cryptocurrencies or ICO’s. Since each individuals situation is unique, a qualified professional should always be consulted before making any financial decisions. Black Moon Research makes no representations or warranties as to the accuracy or timelines of the information contained herein.
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