A beginner's guide to TRON, helping you understand the basics of TRX and its so-called decentralised platform for content sharing and entertainment.
TRON (TRX) is a blockchain-based platform that has gained significant attention in the cryptocurrency space since its launch in 2017.
However, despite its lofty promises of decentralisation, the reality is that TRON is far from being a truly decentralised platform.
In this guide to TRON crypto, we'll take a critical look at TRX and explore the extent to which it is centralised.
We'll examine Justin Sun's role in TRON's governance and decision-making, and how this affects the network's ability to deliver on its promises of decentralisation.
Additionally, we'll explore TRON's key features, such as its smart contract capabilities and native cryptocurrency, TRX, and how they contribute to the network's centralisation.
If you're considering investing in TRON or are simply curious about the network's potential, it's important to understand the extent of its centralisation and the risks that come with it.
So, read on to discover the truth about TRON and why it may not be the truly decentralised platform it claims to be.
Introduction to TRON crypto
The main issue with TRON is that it is controlled by Justin Sun, a controversial Chinese entrepreneur who owns the majority of the TRX tokens.
As you’re reading this on a Hive crypto based front-end, you may remember Sun from his hostile takeover of the Steem blockchain.
He is not someone you should trust.
Sun's tight grip on TRON's governance and decision-making processes has raised concerns about the network's centralisation, and whether it can truly deliver on its promises of democratising the entertainment industry.
Despite these concerns, TRON continues to position itself as a decentralised platform that aims to disrupt the entertainment industry by providing a direct link between content creators and consumers.
However, the truth is that TRON's centralisation makes it vulnerable to manipulation, censorship, and other abuses that are inherent in centralised systems.
How does TRON work?
To understand how TRON works, we need to take a closer look at its consensus mechanism and governance structure.
TRON uses a delegated Proof-of-Stake (DPoS) consensus algorithm and elects "Super Representatives" to oversee the network's operations and decision-making.
While this approach promises faster transaction speeds and greater efficiency compared to other consensus mechanisms, it also raises concerns about centralisation and the concentration of power in the hands of a few key players.
In this section, we'll explore how TRON's DPoS consensus and "Super Representatives" system work, while critically examining the legitimacy of its claims of decentralisation, given Justin Sun's majority controlling stake in the network's governance token.
TRON’s Delegated Proof of Stake consensus mechanism
Delegated Proof-of-Stake (DPoS) is a consensus algorithm that enables blockchains to achieve consensus more efficiently and with lower energy consumption compared to other consensus mechanisms such as Proof-of-Work (PoW) or Proof-of-Stake (PoS).
In DPoS, token holders delegate their voting power to "witnesses" who are responsible for verifying transactions and producing new blocks.
These "witnesses" are typically referred to as "delegates" or "validators" in other blockchain networks.
Pertaining specifically to TRON, its DPoS consensus algorithm involves a network of "Super Representatives" who are elected by TRX token holders to validate transactions and create new blocks.
Token holders can vote for "Super Representatives" using their TRX tokens, and the candidates with the most votes become "Super Representatives" who are responsible for validating transactions and producing new blocks.
Each "Super Representative" has an equal chance of being selected to produce a block, but the probability of being selected is proportional to the number of votes they receive from TRON token holders.
In other words, the more votes a "Super Representative" receives, the higher their chances of being selected to produce a block.
One of the key benefits of TRON's DPoS consensus mechanism is that it allows for fast transaction times and high throughput, as "Super Representatives" are able to produce blocks quickly and efficiently.
However, with Justin Sun's majority controlling stake in TRON's governance token, there are concerns about the extent to which TRON's DPoS consensus is truly democratic and decentralised.
The reality is, TRON may as well be a database.
What is TRON crypto used for?
TRON (TRX) is a cryptocurrency that serves as the native token of the TRON blockchain platform.
TRX is used to facilitate transactions, pay fees, and access services and applications within the TRON ecosystem.
One of the primary use cases for TRON is as a platform for decentralised applications (dApps).
TRON's developers have designed the platform to be highly scalable, with fast transaction times and low fees, making it an attractive platform for developers looking to build dApps.
Some of the most popular dApps on the TRON platform include BitTorrent, TRONBet, and WINk.
TRX is also used to pay for bandwidth and storage on the TRON platform.
Users can stake their TRX tokens to gain access to more bandwidth and storage, which allows them to run more complex and resource-intensive applications on the TRON network.
In addition to these use cases, TRON has also been used as a means of payment and remittance, with some merchants and businesses accepting TRX as a form of payment.
However, TRON's adoption as a mainstream payment method has been limited, and it is primarily used within the TRON ecosystem.
Overall, the primary use cases for TRON are as a platform for dApps, a means of paying for bandwidth and storage on the TRON network, and a means of payment and remittance within the TRON ecosystem.
TRON pros and cons
Before investing in TRX, it's important to weigh the potential benefits and drawbacks of the token and its platform.
In this section of our TRON crypto guide, we will explore some of the key TRX pros and cons to give you a better understanding of the platform's strengths and weaknesses.
Pros of TRON
High throughput: TRON's delegated Proof-of-Stake consensus mechanism allows for fast transaction times and high throughput compared to other blockchain platforms.
Scalability: TRON has been designed to be highly scalable, which makes it an attractive platform for developers looking to build decentralised applications (dApps).
Low fees: TRON's transaction fees are relatively low compared to other blockchain platforms.
Strong ecosystem: TRON has a growing ecosystem with popular brands like BitTorrent and TRONBet attracting users and developers.
Flexibility: TRON supports multiple programming languages, which allows developers to build dApps in the language they are most comfortable with.
Integration with other platforms: TRON has partnerships with other blockchain platforms and companies, which could expand its reach and adoption.
Wide adoption: TRON has a significant following and a strong community, which helps to promote its adoption and use.
Strategic acquisitions: TRON has made strategic acquisitions of other blockchain and cryptocurrency companies, which could help to expand its capabilities and reach.
Good marketing: TRON has a strong marketing campaign and has been successful in promoting its platform and use cases to a wide audience.
Cons of TRON
Centralisation: TRON's governance token is largely controlled by Justin Sun, which raises concerns about centralisation and the concentration of power.
Limited adoption: Despite its significant following and community, TRON has yet to achieve widespread adoption beyond its ecosystem.
Security concerns: Like other blockchain platforms, TRON is vulnerable to security threats and has experienced hacks and other security incidents in the past.
Regulation risk: As a decentralised platform, TRON is vulnerable to regulatory actions and uncertainty, which could impact its adoption and use.
Dependence on partnerships: TRON's growth and adoption depend on partnerships with other platforms and companies, which could be a risk if those partnerships do not materialise.
Reputation: TRON has been criticised in the past for plagiarism and other controversies, which could impact its reputation and adoption.
Competition: TRON faces competition from other blockchain platforms, which could impact its growth and adoption.
Lack of transparency: TRON has been criticised for lacking transparency and not providing enough information about its operations and decision-making.
Immature ecosystem: While TRON has a growing ecosystem of decentralised applications, it is still relatively immature compared to other blockchain platforms.
Environmental concerns: Like other blockchain platforms, TRON's Proof-of-Stake consensus mechanism still requires significant energy usage, which raises concerns about its environmental impact.
Is TRON integrated into Steemit?
Yes, TRON is integrated into Steemit.
Steemit is a blockchain-based social media platform that rewards users with cryptocurrency for creating and curating content.
In February 2020, TRON acquired Steemit and integrated its blockchain technology into the platform.
The integration of TRON into Steemit has enabled faster transaction speeds and lower fees, improving the overall user experience.
Additionally, TRON's acquisition of Steemit has expanded its ecosystem and user base, as Steemit has a large community of content creators and users.
Is stablecoin USDD just a TRON exit scam for Justin Sun?
Justin Sun’s TRON cryptocurrency is a shitcoin.
Everyone who experienced the way he went about taking over the Steem blockchain knows it..
Heck, even Justin Sun himself knows it…
Now, that’s all fun and games as long as someone continues propping up price and the metaphorical music keeps playing.
“Hehehehe buy my shitcoin, hehehehe”.
Oh that silly Justin, he’s so funny!!
But as we saw following the catastrophic collapse of LUNA and UST, it’s less fun when scammy billionaire founders use retail investors as exit liquidity.
And using his own USDD ponzi scheme in order to extract maximum value from TRON via retail investors, before the market catches onto the fact he’s simply running an exit scam, is exactly what’s playing out in front of our eyes.
USDD is entirely centralised
Justin Sun’s exit scam for TRON is made possible by the fact that USDD is entirely centralised.
The screenshots in l337m45732’s post that I linked to just there, shows that this is undeniably the case.
When you claim to be building a decentralised, algorithmic stablecoin, but actually go for explosive growth by minting 94% of the supply yourself, surely you’ve gotta be called out?
CoffeeZilla is all over it:
But I honestly can’t believe that Justin Sun’s USDD stablecoin project hasn’t received more scrutiny from the mainstream crypto media.
CoinDesk instead choosing to essentially conduct interviews that act as ads for his scam and actually referring to him as his excellency is absurd.
USDD is so centralised that 683 million tokens out of the 723 million total tokens that have ever been minted, have come from Justin Sun’s address.
Essentially with the end goal of attracting retail investors via offering a totally unsustainable 30% yield and dumping his TRON bags on them.
Yuck.
USDD’s centralisation allows it to generate the liquidity required for Sun to exit scam
You see the best part about Justin Sun using USDD in this way is that he doesn’t have to dump his core shitcoin TRON on the market.
He can dump it by minting USDD and using it as a shield.
Thus there’s no doubt in my mind that it has simply been created as a way for Sun to dump his self confessed shitcoin TRON, without impacting the price of his core project.
Make no mistake, just like we saw with UST, USDD will collapse as soon as the mechanism to allow anyone to mint goes live.
Everyone who buys this freshly minted garbage will be left holding worthless bags, but his excellency will have already cashed out of TRON and continuing to live the high life under the straight up criminal diplomatic immunity he receives.
Just so fucking wrong.
Final thoughts on USDD being Justin Sun’s exit scam for TRON
I’m both shocked and angry at the fact that USDD and Justin Sun himself is promoted as legitimate in the mainstream crypto media.
It’s utterly disgusting by not only Sun himself, but all the complicit media continuing to pander to this scammer.
But those of us here on Hive won’t.
At this stage, it’s irresponsible for those of us in the community to not spread the message.
So please do the wider crypto community a favour and keep sharing.
USDD is Justin Sun’s exit scam for TRON!
Should I buy TRON crypto (TRX) in 2023?
As with many cryptocurrencies, TRX's value is primarily driven by speculation and market demand, rather than its underlying use cases.
But given the risks associated with TRON's centralisation and the concentration of power in the hands of its founder, Justin Sun, it may not be wise to invest in TRON in 2023.
Sun's control over the governance token raises concerns about the platform's decentralisation and long-term sustainability.
Furthermore, TRON's ecosystem is still relatively immature, and it faces significant competition from other blockchain platforms.
While TRON has some attractive features, such as its high throughput and scalability, it's important to consider the potential risks before making any investment decisions.
Additionally, TRON's reputation has been tarnished by past controversies, such as allegations of plagiarism and questionable partnerships.
This could impact its adoption and reputation in the long term. Moreover, TRON's dependence on partnerships and acquisitions could make it vulnerable to market changes and regulatory risks.
As a relatively new platform, TRON's future is still uncertain, and it's important to consider the risks associated with investing in any cryptocurrency.
Overall, given the concerns around TRON's centralisation and dependence on partnerships, it may be prudent to consider other blockchain platforms with stronger decentralisation and a more mature ecosystem.
While TRON has potential, hopefully this TRON crypto guide has stressed just how important you must carefully evaluate its strengths and weaknesses before making any investment decisions.
LeoFinance Crypto Guides.
Why not leave a comment below and share your thoughts on our guide to TRON crypto (TRX)? All comments that add something to the discussion will be upvoted.
This TRON crypto (TRX) guide is exclusive to leofinance.io.