What Is Tron (TRX)?
Also known as: TRX, TRON
In short
Tron (TRX) is a Layer 1 blockchain founded by Justin Sun in 2017 that runs on Delegated Proof of Stake (DPoS), with TRX as its native cryptocurrency. It is widely used for USDT transfers in particular because of its low transaction fees.
TRX was first deployed in 2017 as an ERC-20 token on Ethereum; the network moved to its own mainnet in 2018. On Tron, blocks are produced by 27 Super Representatives elected by the votes of TRX holders. Smart contracts run on the Tron Virtual Machine (TVM), which is largely compatible with the EVM; this makes it relatively easy to port applications written in Solidity. The network's token standard is TRC-20.
In Tron's distinctive resource model, users can obtain the bandwidth and energy resources needed for transactions by freezing (staking) TRX, or they can pay the fee directly in TRX. This structure and the low fees have made Tron one of the most widely used networks for Tether's USDT; in many countries, the TRC-20 network is frequently preferred for USDT transfers between exchanges.
Criticism generally focuses on the level of decentralization. The limited number of block producers and the concentration of votes among large TRX holders raise concerns that control of the network could be gathered in a narrow group. The fact that the network's development is closely tied to its founder and affiliated organizations is also a frequently voiced criticism.
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