Tron is a blockchain-based platform aimed at offering a global digital content entertainment system. The decentralized platform seeks to offer free content and storage facility to developers who often face compensation challenges in centralized platforms such a YouTube.
The platform came into being in 2017 as a brainchild of Singapore-based non-profit organization Tron Foundation. The foundation has a dedicated in-house development team made up of technology stalwarts headed by CEO Justin Sun. At inception, the project raised $70 million through an initial coin offering.
How Tron Works
The Tron network relies on the Delegated Proof-of-Stake consensus mechanism. In the Tron Blockchain, 127 representatives are elected by TRX coin holders. Among them, 27 are elected to mine blocks that are added to the chain. In this case, a new block is mined by the representatives every 3 seconds.
The mining of a new block results in the miner being rewarded about 16 TRX per block. The elected representatives share the vote rewards. The Tron foundation has placed 33 billion TRX coins in escrow to be used as rewards on the mining of new blocks on the Tron blockchain.
Tron leverages blockchain technology to bridge the gap between content creators and content consumers by eliminating middlemen. The result is the creation of a decentralized platform that reduces cost for consumer s, while enabling improved collection through direct receipts for decentralized application developers and content producers
Tron’s ultimate goal is to eliminate middlemen when it comes to content distribution. Consider Netflix, which offers a platform through which content producers distribute content to consumers. In the end, Netflix ends up with the lion’s share of revenues generated on the distribution of content, with producers getting a small share.
The decentralized platform hopes to eliminate the middlemen by offering a platform through which content producers interact directly and freely with consumers. In return, the global audience would be able to pay the producer freely to consume content.
Tronix or TRX is the native coin that powers the Tron decentralized platform. In this, case consumers use Tronix coins to pay for accessing content on the network as well as for using storage facilities offered.
In return, content producers exchange the Tronix coins they receive from consumers for other cryptocurrency or fiat money. Likewise, they can also use the coins to pay for other services on the blockchain network.
What Affects Tronix Value
Tronix is the 14th largest cryptocurrency by market cap. Its price in the market is influenced by a number of factors, key among them being how effective and efficient the decentralized application is at enabling the distribution of content. Similarly, technology enhancements that enable the use of the platform for storing content also goes a long way in influencing its value.
Media hype on Tron effectiveness in enabling a decentralized platform also goes a long way in affecting Tronix’s price in the market. Regulatory pressures pertaining to cryptocurrencies in various jurisdictions also play a role in influencing the crypto price.