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What is TRON?
TRON (TRX) is an open-source platform where users run blockchain smart contracts and use cryptocurrency to buy and sell decentralised apps (dApps) built for a range of purposes, including finance, entertainment and gaming.
First established in 2014 by Chinese cryptocurrency entrepreneur Justin Sun, TRON began as a token on the Ethereum blockchain before switching to its own distributed ledger in 2018. TRON operates a proof-of-stake consensus algorithm - a method of verifying transactions. Its native token is a cryptocurrency called Tronix (TRX).
The TRX token serves as the fundamental unit of exchange on the TRON network. Protocol operations were initially overseen by the not-for-profit TRON Foundation, based in Singapore. Since its inception, TRON has grown a large digital ecosystem and marketplace for decentralised apps (dApps) and other crypto-related projects.
dApps are digital applications or programs that exist and run on a blockchain or peer-to-peer (P2P) network of computers instead of just one, outside the purview or control of a single authority, according to Investopedia.
TRON boasts 117 million global users and has processed more than 4 billion transactions to date. Its market cap - US$5.6 billion at the time of writing - consistently ranks among the top 20 cryptocurrencies on CoinMarketCap.
The TRON network claims to have became fully decentralised in December 2021, making it a "purely community-governed" Decentralised Autonomous Organisation (DAO). A DAO is a group of users, whose members share a common goal and are financially incentivised to act in the best interest of the entity. It's a kind of bottom-up collective structure, with no central authority and voting rights typically accredited to monetary investment.
A recent report by the Crypto Carbon Ratings Institute (CCRI) - a research-driven institution that provides carbon estimates for investments in crypto and related technologies - found the TRON network to be a "positively sustainable operation". The Energy Efficiency and Carbon Footprint of the TRON Blockchain report revealed that TRON’s network consumes as little electricity as just fifteen average U.S. households.
What does TRON do?
The crypto platform offers content creators the opportunity to sell their apps in a heavily trafficked digital marketplace at a self-determined value and retain product ownership rights, eliminating the need for third party intervention.
TRON's dApps marketplace includes:
- Decentralised exchanges (DEXs)
- Digital wallets - think secure cryptocurrency storage and token transfers
- Social media platforms
- Games
- Financial services - think stablecoins, crypto lending and GameFi, a hub for game finance
- Web3 applications - think Decentraland and the metaverse, as excellently explained by Eric Ravenscraft at Wired
Transaction fees on TRON's blockchain are relatively miniscule, attracting costs that are only extreme fractions of a cent. The network can support up to 2,000 transactions per second - that’s fast. Comparatively, at the time of writing, Bitcoin’s blockchain completes about seven transactions per second, while the Ethereum protocol can handle up to 36 per second. This transactional efficiency offers TRON vast scalability.
Some of the more prominent applications that TRON’s ecosystem has developed include:
- TRON Virtual Machine (TVM): Created exclusively for the TRON ecosystem, the TVM aims to deliver clients a tailored blockchain system that is stable, practical, safe and scalable.
- dApps: TRON has amassed a thriving community of app developers that utilise its high performance, low-cost, decentralised blockchain network to sell and trade their decentralised applications.
- Wallet-Cli: The official wallet client created by the TRON Foundation. Wallet-Cli supports all network functions, such as trading, transacting and storing of the TRX cryptocurrency in real-time.
- TronLink Wallet: TronLink is another TRON wallet that provides users a convenient and functional way to secure and send funds.
- Blockchain Explorer: The first blockchain explorer based on TRON is tronscan.org, which offers the ability to search for specific smart contracts, transactions, accounts, blocks, nodes, and more.
How does TRON’s blockchain work?
There are 27 super representatives (SRs), selected every six hours by acquiring the most votes among the community. These representatives, often syndicates made up of multiple users, are responsible for maintaining transaction history for the TRON network in exchange for TRX rewards. A new block is added to the blockchain every three seconds, and each block added is currently worth 16 TRX.
While TRX holders can apply to be SR candidates, in order to prevent malicious attacks, TRON has a threshold for candidacy admittance - to run as a SR you must agree to burn 9,999 TRX. Burning tokens takes them out of circulation, reducing the total supply which ideally boosts demand.
Any account holder with TRX can also vote for SR candidates by staking (holding without transacting) TRX for three days to acquire voting rights or “Tron Power”. Each staked TRX coin amounts to one vote.
TRON has a default ratio for rewards distribution of 20% to SRs and 80% to their voters, but ultimately it’s up to SRs to set a ratio users accept. You can check SR candidate’s stake rates, sponsored projects they might support to boost TRX adoption, and the rewards they’ve previously distributed to voters on blockchain browser Tronscan.
TRON’s USDD stablecoin
Although TRON’s founder, Justin Sun, left the company at the end of 2021 to take a position as Grenada’s ambassador to the World Trade Organization (WTO), he continues to promote the public chain platform via his social media channels and still holds substantial amounts of TRX.
TRON introduced a new stablecoin, USDD, in May 2022. USDD operates a hybrid model, combining elements of an algorithmic stablecoin - burning and minting TRX to maintain its dollar parity - and overcollateralized backing from crypto assets, such as Bitcoin and reserves of US dollar-pegged stablecoins Tether (USDT) and USD Coin (USDC).
Some in the crypto community have raised concerns that USDD remains exposed to familiar issues that have plagued other algorithmic stablecoins, such as TerraUSD. In May 2022, TerraUSD depegged from its US$1 value, causing a ripple effect that wiped around $60 billion from crypto markets.
How do I buy TRON?
You can buy TRON (TRX) through a number of cryptocurrency exchanges. You can use your credit card or debit card to buy TRX directly or use Bitcoin or other altcoins to purchase TRX. Exchanges that sell TRON in Australia include CoinSpot, Coinstash, Swyftx, Binance, Digital Surge, Zipmex and more. See the table below to compare different crypto exchanges. You can trade and store TRX using a variety of digital wallets.
Should I buy TRON?
As with any investment, it's sensible to conduct as much research as possible to determine the risks and potential gains or losses you may incur. Crypto investments can be particularly volatile and speculative so if you do decide to invest, you may want to consider only committing what you're willing, and can afford, to lose.
Deciding whether or not TRON is a good investment will depend on your personal circumstances and financial ambitions. Some factors you may wish to consider include price, costs, volatility, trusted user reviews, business performance, opportunity for mainstream adoption, and network/product credibility.
Given its esoteric reputation, you might assume that cryptocurrency is not a relevant taxable asset in Australia. Think again. The Australian Taxation Office (ATO) has your crypto earnings in its crosshairs, so be prepared to pay up.
Note: Every investment is a risk. Past performance is not a reliable indicator of future performance. Before investing in crypto or other assets, consider seeking financial advice to determine what's best for your financial situation.
Disclaimer
This article is over two years old, last updated on October 25, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent cryptocurrency articles.
Compare cryptocurrency exchanges
Swyftx
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD, NZD
Trading Fee: 0.6%-0% based on a rolling 30 day's trading volume
Withdrawal Fee: $0 for AUD/ Deposit's withdrawals. Network transaction fees apply while transferring coins to an external wallet
Deposit Fees: No POLi fees. No fees on cryptocurrency and PayID deposits. Credit/Debit card deposits supported (5% fee)
An Australian owned and operated digital currency exchange that allows users to sell, trade and buy Bitcoin, and over 245+ other digital assets, with low trading fees and one of the smallest spreads available.
CoinJar
Cryptocurrencies available: 57
Fiat Currencies Accepted: AUD, GBP
Trading Fee: 0%-1%
Withdrawal Fee: No fee for AUD or GBP withdrawals. Cryptocurrency withdrawal fees are based on blockchain network fees
Deposit Fees: No fees with PayID; 2% fee with credit / debit card, Apple Pay, and Google Pay
Australia's longest-running cryptocurrency exchange with over 500,000 Australian customers and a simple to use app for both iOS and Android.
Digital Surge
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD
Trading Fee: 0.1%-0.5% based on a rolling 30 day trading volume.
Withdrawal Fee: None for Australian bank accounts - Instant withdrawals through Osko/PayID.
Deposit Fees: No fees for Osko/PayID, Direct Deposit, Bank Transfers or cryptocurrency. POLi fees range from $2-$3.30.
Because simplicity makes life better. The easiest way for Australians to buy, sell & store over 245+ cryptocurrencies. Low fees, tight spreads, Aussie-based customer support & an interface that makes crypto enjoyable & easy-to-understand. Simple. Safe. Stress-free.
CoinSpot
Cryptocurrencies available: 263
Fiat Currencies Accepted: AUD
Trading Fee: 0.1% to 1% based on order type
Withdrawal Fee: None for Australian Bank Accounts
Deposit Fees: No fees for POLi, PayID, Direct Deposit and Bank Transfers. 0.9% BPAY fee, 2.5% cash fee
Australia’s most trusted exchange since 2013.
Cointree
Cryptocurrencies available: 280+
Fiat Currencies Accepted: AUD
Trading Fee: 0.05%-0.9%
Withdrawal Fee: No fee with fiat withdrawals. Cryptocurrency withdrawal fees vary.
Deposit Fees: No fee
Buy, sell, trade and pay with crypto. Simple, low fees, easy to use and trusted by 100,000+ members. Enjoy $10 BTC credit after verification with promo code: RATE10
This information does not reflect any ranking, rating, recommendation or endorsement by RateCity of cryptocurrency or any specific provider. RateCity is providing factual information supplied by providers. Not all providers or products are shown. RateCity will earn a fee from the providers displayed in the table (if a link to the provider's website is shown), and the fee levels determine placement in the table. Cryptocurrencies are speculative, complex and can involve significant risks. RateCity is not providing a recommendation for your individual circumstances.
Product database updated 25 Nov, 2024
