Tron aims to be the foundation of a decentralised internet where users can create decentralised applications (dApps) and content without the need for centralised intermediaries. Its slogan is "Decentralise the Web" and their primary focus is entertainment, with content creators and consumers able to interact directly.
Beware of address poisoning
Because of its low transaction fees, the Tron network experiences spam transactions and address poisoning attacks, where hackers send tiny amounts of crypto to wallet addresses to trick you into sending funds to their address. Do not:
- Send crypto to an address you copied from your transaction history without first checking that the entire address is correct.
- Interact with any notes or memos associated with these spam transactions on blockchain explorers.
Who created Tron?
Entrepreneur Sun Yuchen, better known as Justin Sun, founded Tron in early 2017. Before this, Sun had already made a mark in China with the creation of audio content app Peiwo. He has also served as a representative for Ripple in 2015, the company behind the XRP cryptocurrency, and as the CEO of BitTorrent, the file-sharing program.
How does Tron work?
The Tron protocol works in a similar way to other dApp operating systems such as Ethereum, using smart contracts to enable developers and content creators to publish their work directly onto the blockchain, where it is stored in a secure and immutable manner.
Additionally, the Tron network allows peer-to-peer interactions, enabling direct communication and transactions between creators and consumers without intermediaries. By removing the reliance on centralised entities, Tron empowers users to have greater control over their data and content, creating a more democratic internet ecosystem.
Delegated Proof of Stake (DPoS)
Tron uses a consensus mechanism known as Delegated Proof of Stake (DPoS) to secure the network and validate transactions. In the DPoS model, holders of TRX, the native cryptocurrency of the Tron network, vote for a select number of delegates who are responsible for validating transactions and maintaining the network. These delegates, also known as super representatives, govern the Tron network.
Transactions in the Tron network are validated by 27 super representatives that are entrusted to maintain the transaction history. These super representatives are chosen every six hours, and if chosen, are able to earn TRX generated by the protocol.
This differs from Proof of Stake (PoS) in that in PoS, all holders have the opportunity to participate in block validation by staking their tokens. DPoS aims to improve scalability and efficiency by delegating block validation to a smaller group of trusted entities, while PoS seeks to achieve consensus by allowing any token holder to validate transactions based on the number of tokens they hold.
What is the Tron Virtual Machine (TVM)?
The Tron Virtual Machine (TVM) is a computer system and execution environment that allows developers to deploy and execute smart contracts on the Tron blockchain. Similar to Ethereum’s Virtual Machine (EVM), TVM provides the necessary resources and tools for developers to write smart contracts in programming languages like Solidity that can be executed by a virtual machine.
What is the native cryptocurrency of the Tron network?
The native cryptocurrency of the Tron network is called TRX. The cryptocurrency powers its governance, security, and economic systems. TRX incentivises active participation, secures the network, and allows users to interact with and contribute to the broader TRX ecosystem.
Note
On Luno, you’re simply buying, selling, sending or receiving TRX, like any of our other supported coins. The crypto assets held in your Luno wallets are not involved in TRON protocol functions, such as vote-locking or governance. If you’d like to participate in any of that, you can visit TRON’s website to learn more.
Tip
Keen to explore TRON a bit more? You can learn about TRX basics and get all the latest cryptocurrency news on Luno Discover.
Want to know how to buy, sell, send, or receive TRX? We’ve got answers in the following help articles:
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.