Despite the fact that cryptocurrencies have been having far from an easy year, interest and investment into the sector has continued to grow steadily throughout 2022 and early 2023. While the sector experienced significant price volatility towards the end of 2022, Bitcoin and other major cryptocurrencies have posted positive growth stats this year so far.
These increasingly positive trading conditions and the significantly brightened market outlook have given the industry a tangible boost after a difficult year.
With the macroeconomic storm beginning to subside somewhat, investors are once again looking for new opportunities to invest in for the months and years ahead.
One of these investment opportunities that has been looking increasingly attractive for many investors is Tron. If the growing popularity of Tron casinos are anything to go by, this could be one of the year’s hottest investment prospects.
For those of you not fully invested in the crypto space, you might have found yourself wondering: what is Tron and is TRX worth investing in?
For answers to these questions and more, keep reading this short article!
What is Tron?
Although you might be more familiar with the 1982 cult-classic science fiction film ‘TRON’, in the cryptocurrency world, Tron is an ambitious project that looks to build an infrastructure for a truly decentralized internet.
Tron is classified as a smart contract platform and is one of the many different projects trying to decentralize the internet using advanced blockchain technology.
It was founded in 2017 by a group of Singapore-based developers and initially started on the Ethereum blockchain, although it later migrated to a tailor-made blockchain.
In addition to being a technically ambitious project, Tron is also known for its eye-catching marketing campaigns, as well as its generous donations to charity. Notably, it also acquired the decentralized file-sharing service BitTorrent in 2018 for a whopping $120m.
The native cryptocurrency of Tron is Tronix, also known as TRX, which works both as a global online content sharing platform, as well as a platform that supports autonomous applications launched directly by developers.
How does Tron work?
As with many other decentralized blockchain networks, Tron has close similarities to Ethereum in terms of its basic functionality and building blocks. This includes the ability to support decentralized applications, smart contracts and tokens.
At the heart of what makes Tron work is the Tron Virtual Machine (TVM), which is a virtual program that allows contributors to the network (nodes) to execute smart contracts on the Tron network. These smart contracts are self-executing and will perform specified functions when conditions are satisfied.
The Tron network also works on the basis of a proof-of-stake consensus mechanism, which allows TRX token holders to stake units of the currency in order to validate transactions.
Uniquely, the Tron network delegates a group of 27 representatives who are re-designated every six hours to validate new transactions and data on the network.
The Tron network consists of three main layers: the core layer, the storage layer and the application layer.
What makes Tron unique?
With this basic understanding of how Tron works, what makes the platform unique compared to other blockchain networks out there?
Despite the similarities to Ethereum and other similar platforms, Tron has several features that make it truly unique — both as a platform to use and as an investment opportunity.
Firstly, Tron was built with file sharing in mind. Its close links to BitTorrent make it an incredibly powerful content delivery platform. In this regard, the future growth prospects of Tron are truly unique.
Depending on the quality of content it can provide access to, it could prove to be a hit with users!
Another unique feature is the elected ‘super representatives’, which adds a whole new dimension to the staking mechanism.
How can I invest in Tron?
If all these exciting features have interested you in what Tron has to offer, now might be the perfect time to take the plunge and make an investment in it! But how do you actually do this?
Given that Tron is one of the most popular cryptocurrencies currently in circulation, investing in Tron is quite simple! All you need to do is set up an account with a broker of your choice and acquire some at a finance price-point that feels right.
Generally speaking, the investment prospects of TRX are pretty solid. The functionality that is built into Tron could prove to be a serious challenger in the digital media space.
Much of this depends on users actually using the platform, which will itself be shaped by the type of content they can deliver. If the Tron team manages to get this sorted, 2023 could be a solid year for them.