TRON (TRX) Offers Innovation Over other Cryptocurrencies
TRON (TRX)–The founder of Cardano was speaking at a recent ICO Summit when he mentioned the possibility of ADA leading the wave of third generation cryptocurrencies in its ability to scale with increased user volume. TRON, a figure in this “modern” cache of cryptos, has taken innovation a step further: rather than be another currency dependent upon the transaction model as its sole reason for use, TRON is establishing an ecosystem based entirely on cryptocurrency. TRON’s network is designed to encapsulate and improve upon the modern digital and entertainment industry, while providing an underlying cryptocurrency and technology to spark new enterprise. If any cryptocurrency is poised to pave the way in innovation, it’s Justin Sun and the TRON Foundation’s token.
Top Market Features for TRX
Why #TRON is better than #ETH: 1. 10000TPS vs. 25TPS 2. zero fee vs. high fee 3. consistent Coinburn vs. no coinburn 4. Java vs. Solidity 5. strong extensibility vs. no ex. 6. 1 billion USD developers rewards vs. no plan 7. 100 million users vs. small number #TRX $TRX pic.twitter.com/WvxH5EToa8
— Justin Sun (@justinsuntron) April 6, 2018
With the Test Net launch and rise of TRON’s Main Net, TRX (the underlying cryptocurrency used to power TRON’s network) is already one of the top currencies in terms of usability. Considering how closely related TRON has been to Ethereum in the past, it’s worth looking at what TRX provides in the context of ETH features:
- Built for scale. TRON’s network is capable of handling 1000+ transactions per second, with the ability to grow even larger over time. Compare that to Ethereum, which at present, has a tps of 25.
- Essentially free transactions. The cost of conducting a TRON transaction is 0.00001 TRX, which means an entire lifetime of TRON network payments can be made for the cost of a single TRX token. Ethereum has averaged transaction fees in the 0.40 – 0.60 USD range, hitting a peak of 4.15 USD (!) per transaction in early January.
- Coin burn and increased liquidity. At present, Ethereum has no hard cap on the max supply of ETH, with the idea that inflation over time can be used to the benefit of developers and Ethereum market commerce. TRON has higher liquidity through its 100 billion coin supply, giving TRX a more ubiquitous presence on a platform as big as what TRON is intending. Justin Sun’s announcement over the TRX coin burn adds an interesting twist to how TRON’s network will function. If a third-party (such as a developer listing a game through Game.com) wishes to create a brand new coin on TRON’s network, it requires the consumption of around 1000 TRX, removing those tokens permanently. This means that over time, the value of individual TRX coins goes up as TRON’s network gains in adoption and development.
Greater Potential in Partnership
Traditional cryptocurrencies, which are geared towards conducting transaction based commerce, have a relatively smaller pool of companies to partner with than TRON. While replacing government fiat represents a trillion dollar industry for Bitcoin, Litecoin, Ripple, etc., it also limits their partnerships to companies and existing entities that use money in transactions. TRON is able to go after a broader pool of potential adoption. This makes the project itself more inherently risky, with a much greater chance of falling short of Justin Sun’s vision of TRON revolutionizing the digital entertainment industry. But TRON benefits from being able to partner with every industry from gaming to literary publication. We have already seen the effects of having such a broad pool of potential adopters, with TRON trailing only Ripple’s XRP in terms of new partnership announcements in 2018.
TRON is Positioned to Benefit from Crypto Bans
While the market responded with a negative price turn to the announcement that Google, Facebook and Twitter would effectively be banning the promotion of cryptocurrency products, crypto–as an industry–stands to benefit from the move. Any time central figures of authority attempt to ban something that is new and controversial, particularly a novel technology, two things occur, both of which are positive for the banned industry.
The first is increased interest in what is being labeled taboo. When people are told they cannot or should not have access to something, their natural inclination is increased curiosity. While members of the general public, particularly those of less tech-savvy generations, will view the crypto-ban as social media companies trying to “protect” their user base from the “harmful” cryptocurrencies, the overwhelming majority are going to take greater interest in crypto. Why is it that Google doesn’t want me to see ads for crypto? Why would Facebook attempt to ban Bitcoin? Most of the public perception tangential to the industry of cryptocurrency is based around the immense wealth generated by cryptocurrency investors and the uses for crypto that subvert traditional government regulations and law, both of which hold an interest to large swathes of the population. Having Facebook take a stance against crypto only enhances the appeal to those who have yet to take the plunge in the industry.
The second feature of banning technology, of which TRON is most likely to benefit, is the creation of ardent, disenfranchised populations who now feel the pressure to push back. There is a reason why occupations, throughout history, have failed to a large degree: when people feel that their beliefs and values are being attacked, they create passionate, highly effective communities that find ways to subvert the system. Cryptocurrency already benefits from having a community steeped in a global, libertarian mindset that is interested in solving novel problems without the intervention of governments or central authorities. The social media ban only further highlights the amount of power concentrated within a handful of internet companies, and gives further reason for the cryptocurrency community to continue seeking innovation and decentralization.
TRON’s network is not going to win over the general public as the next Facebook for social media, but it does provide an outlet for those fed up with the practices of the digital monopoly and looking for a new platform to engage with.