The Origin and Vision of the TRON Project
TRON is one of the most recognizable blockchain projects, especially in Asia. Founded in 2017 under the leadership of Justin Sun, the TRON platform was immediately positioned as an ambitious alternative to Ethereum, offering a cheaper and faster infrastructure for developing decentralized applications (dApps). The project’s core idea was a decentralized internet where users, not centralized platforms, control content.
The startup began with a high-profile ICO, raising about $70 million. Within the following year, the TRON team launched its own mainnet and migrated all tokens from Ethereum to its native blockchain. This was a major milestone: TRON not only launched its blockchain but rapidly expanded its ecosystem by adding new features and integrations.
Technology Architecture and Network Features
TRON is built on a three-layer architecture, separating the core layer, application layer, and data storage layer. This structure ensures flexibility and scalability when implementing new features. A notable highlight is the TRON Virtual Machine (TVM), which is compatible with Ethereum and allows smart contracts to be migrated without adaptation.
The main consensus mechanism in TRON is Delegated Proof-of-Stake (DPoS). This is a faster alternative to classic Proof-of-Work and even Proof-of-Stake, enabling TRON to process up to 2000 transactions per second. A new block is created every 3 seconds, making the network one of the most efficient among popular blockchains.
Network maintenance is handled by 27 super representatives elected by the TRX holder community. They validate transactions and receive rewards. Users can delegate their tokens, participate in staking, and earn around 4% annual yield.
- Advantages of DPoS: high transaction speed, low fees, community involvement
TRX – Native Currency and Its Use
TRX is more than just a transaction token within the TRON blockchain. It’s used to pay fees, reward super representatives, and obtain voting rights in TRON DAO governance. When TRX is frozen, users receive Tron Power tokens, enabling them to vote on network development proposals.
The coin is supported by various wallets: from the official TronLink to popular options like Trust Wallet and Coinbase Wallet. TRX is also accepted as payment in some online services and prepaid card platforms.
After an initial price surge to $0.22, TRX fell to $0.01, and later rose to $0.16 in 2021. Its price remains volatile, but interest in the coin persists.
The TRON Ecosystem and Its Development
Despite criticism for centralization and similarities to competitors, TRON has developed a rich ecosystem, including DeFi protocols, NFT platforms, and streaming services. A major milestone was the integration with BitTorrent and the migration of DLive to TRON’s blockchain.
Additionally, the TRON team actively invests in GameFi. The TRON Arcade fund allocated $300 million for Play2Earn game development. The NFT sector also received a boost with a $100 million joint fund with APENFT.
- Key Projects: JustLend (lending), SunSwap (DEX), USDJ (stablecoin)
While the number of DeFi apps on TRON is limited, the network consistently maintains high total value locked, indicating strong user trust.
USDT TRC-20 – The Main Growth Driver
The launch of the USDT stablecoin on the TRC-20 network in 2019 was a pivotal moment for TRON. Thanks to low fees and fast transaction times, TRON became a go-to network for moving funds between exchanges and wallets. As Ethereum faced congestion, TRC-20 emerged as a practical solution.
By 2022, over $40 billion in USDT was circulating on TRON — nearly half of all issued coins. Unsurprisingly, TRON surpassed 100 million users, and USDT TRC-20 became a vital part of the crypto ecosystem.
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The USDD Stablecoin Experiment
Following the collapse of Terra’s algorithmic stablecoin UST, the TRON team launched its own stablecoin – USDD. Its reserve fund is managed by the Tron DAO Reserve and includes assets like USDT, USDC, BTC, and TRX. To minimize risk, TRON implemented over-collateralization: each USDD is backed by more than $1 in assets.
However, USDD has not always maintained a stable price. Its fluctuations have caused concern, even though it technically remains within acceptable bounds. USDD is minted by burning TRX, which also helps reduce TRON’s total supply.
Conclusion: TRON’s Prospects and Challenges
TRON is more than just an Ethereum clone — it’s a project with its own momentum and strategy. Its strengths inсlude high performance, low fees, an active community, and significant stablecoin market share. But weaknesses remain: limited decentralization, a modest dApp ecosystem, and heavy reliance on marketing.
As long as the platform leads in USDT transaction processing, it remains relevant to millions. TRON’s future depends on its ability to attract developers, broaden its application range, and maintain financial stability. Regardless, TRON has already made its mark in blockchain history and continues to evolve.