5 min read
The current version of the internet is dominated by centralized players. Companies like Google, Facebook and Amazon own and control the data we all generate. That’s made those middlemen very wealthy, and the rest of us not only out-of-pocket, but unsure how and what our data is being used for.
That’s a problem Tron wants to solve, by building a decentralized internet that's controlled and owned by the individuals who use it.
In this Learn article, we'll explore the basics of what Tron is and how it works. To learn more, head to our Courses section for our Getting Started with Tron course.
Tron is an open-source blockchain platform designed to function as the infrastructure for a decentralized internet. It can run smart contracts, which form the building blocks of decentralized applications, or dapps; apps that run atop Tron's network of nodes, and therefore can't be shut down or controlled by a single person or entity.
Tron’s ambition is to form the foundation upon which sophisticated services like trading platforms, decentralized gaming networks and decentralized finance (DeFi) applications are built.
Tron was founded by Justin Sun, the former chief representative of Ripple in China. Sun stepped down from his role as CEO of the Tron Foundation in December 2021, handing control of the project to the non-profit Tron DAO, a decentralized autonomous organization.
Tronix, or TRX, is the native coin of the Tron ecosystem. It's used for transaction fees on the network, and can be staked in order to receive network rewards. It's also used for governance, with TRX holders able to vote on decisions about the network.
Unlike mining-based cryptocurrencies like Bitcoin, the TRX token was issued at launch. As of October 2022, TRX’s token supply is 92 billion, and claims to have maintained a deflationary status since October 2021. TRX can be subdivided; the smallest unit of TRX is called SUN, with one TRX corresponding to 1,000,000 SUN.
Tron is less a cryptocurrency like Bitcoin, and more a unit of value. Tron wants its TRX token to facilitate the exchange of digital assets without requiring a middleman.
Tron’s TRX token acts as the ledger that keeps track of the exchanges on the network, and ultimately becomes a store of value that content creators can use as they see fit.
At the heart of Tron is a consensus mechanism known as delegated proof-of-stake, or DPoS. Unlike Bitcoin, Tron doesn't use proof-of-work, a model that relies on a network of computers solving math problems to maintain the security of its network. This is a highly energy-intensive process that's resulted in criticism of Bitcoin's environmental impact.
Instead, DPoS is an evolution of the proof-of-stake mechanism employed by blockchains like Ethereum. In this system, people vote on which nodes should be allowed to process transactions on the network. On the Tron network, there are 27 of these "super representatives".
Their job is to validate transactions, create new blocks and compete for rewards for good behavior on the network. The voting system to elect super representatives is ongoing, meaning that if one is misbehaving, they can be replaced.
Tron’s mission is to “heal the internet”. It believes it can do that by deploying four main features.
Tron is aiming to position itself at the heart of the emerging decentralized internet, building out its ecosystem to support numerous dapps and projects such as its stablecoin, USDD.
Want to learn more about Tron? Head to our Courses section for our Getting Started with Tron course.
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