Tron blockchain native currency – TRX Crypto has seen tremendous growth in price since last week amidst the launch of the Tron blockchain algorithmic stable coin.
In this article, we will be looking into the details of Tron stablecoin and TRX crypto tokens.
What Is TRX Crypto?
TRX crypto is a cryptocurrency asset that powers the Tron blockchain, Tron blockchain is a decentralized blockchain-based operating system developed by the Tron Foundation and launched in 2017. Originally TRX tokens were ERC-20-based tokens deployed on Ethereum, but a year later they were moved to their network.
Initially, the project was created to provide full ownership rights to makers of digital content. The main goal is to help content creators (who receive only a small part of the income) and encourage them with more rewards for their work.
Invite content consumers to reward content makers directly (without intermediaries like YouTube, Facebook, or Apple).
The TRON software supports smart contracts, various kinds of blockchain systems, and decentralized applications (dApps). The cryptocurrency platform uses a transaction model similar to Bitcoin (BTC), namely UTXO. Transactions take place in a public ledger, where users can track the history of operations.
Therefore, the platform was built to create a decentralized Internet and serves as a tool for developers to create dApps, acting as an alternative to Ethereum. Anyone can create dApps on the TRON network, offer content, and in return receive digital assets as compensation for their efforts. The ability to create content and share it openly without hesitation regarding transaction fees is an undeniable advantage of TRON.
- Network Principles
The data hosted on the TRON network is free with no central authority. Content creators receive TRX tokens – a reward for their intellectual labor;
TRON supports the creation of coins by content makers, which can be used in their developed applications;
TRON also carries out decentralized games on the network, players can encourage and reward creators with digital assets directly.
The ecosystem is based on three levels, which ensure the smooth and powerful operation of TRON. The architecture is as follows:
Storage Layer, where network data, blockchain state, and historical data are securely stored.
In general, its purpose is to segment all kinds of ecosystem data;
- Application Layer
Where developers are key figures and where TRX is utilized to develop applications and create wallets;
Core Layer, where various instructions are processed (which can be written only in two programming languages - Solidity and Java).
- Principle Of Operation
The core layer computes instructions, processes them, and sends them to the Tron Virtual Machine, where the logic happens, and dApps are executed.
The main network protection tool, as well as one of the special features, is a delegated Proof-of-Stake (dPoS) system, an alternative to the Proof-of-Stake and Proof-of-Work consensus algorithms. This is a competitive advantage of TRON because it means that the network is far more energy-efficient. Furthermore, due to its layered architecture, TRON processes more transactions at once than Proof-of-Work (PoW) systems.
According to the development team, TRON has the higher throughput and can process up to 2000 operations per second without fees, Thus, transactions on the network are feeless.
TRON is a blockchain-based operating system that aims to ensure this technology is suitable for daily use. Whereas Bitcoin can handle up to six transactions per second, and Ethereum up to 25, TRON claims that its network has a capacity for 2,000 TPS.
This project is best described as a decentralized platform focused on content sharing and entertainment — and to this end, one of its biggest acquisitions was the file-sharing service BitTorrent back in 2018.
Overall, TRON has divided its goals into six phases. These include delivering simple distributed file sharing, driving content creation through financial rewards, allowing content creators to launch their tokens, and decentralizing the gaming industry.
TRON is also one of the most popular blockchains for building DApps.
Tron stablecoin (USDD) is an algorithmic stable coin that was created lately and live on the Tron blockchain.
The USDD is also sharing a similarity with Terra’s UST, it is also designed to be used for arbitraging keeping the price pegged to the US dollar through trading between Trx USDD, a reserve of $10 billion in BTC and other cryptocurrency assets would be established to back up the Tron stablecoin.
USDD will be available on three different blockchains, Ethereum and BNB Chain with the support of the BitTorrent network’s cross-chain protocol.
Tron stablecoin – USDD will be managed by Tron DAO while facilitating 30% APY for USDD.
An algorithmic stablecoin is a great initiative in the crypto space and Tron stablecoin is on a track to be among the algorithmic stablecoin pioneers.
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