Every cryptocurrency begins
with a mission in my mind and with TRON that mission has been
bringing content creators and consumers closer together. Essentially, the main
objective of TRON is to build a free, global digital content entertainment system with
distributed storage and provide an easy and cheap way to share content although TRON has also been
expanding into the decentralised apps market. If you want to learn more, please smash the like
button to help the channel and stick around! Like most cryptocurrency platforms on the
market, TRON is decentralised, uses blockchain, uses delegated proof-of-stake and has its own
cryptocurrency called TRONix which goes by the ticker TRX although people also refer to it
as TRON coin. TRON was founded back in 2017 by the non-profit TRON Foundation which is headed
by Justin Sun and has grown tremendously for a 4-year old platform! There are already over 44
million accounts on the TRON platform with over 2.1 billion transactions made so far so we can
tell that TRON is not messing about! The worth of a cryptocurrency is often decided by how many
people actually use it which is a concept that I've mentioned in previous videos and it is known
as the network effect.
Essentially, the network effect is the phenomenon by which the value
or the utility that a user gets from a product depends on the number of users of that product.
Because TRON provides a very social product and is all about connecting people and allowing
content creators to show off their work, the number of account holders and users is
critical. Over the last 12 months, the number of accounts on the TRON network has increased
sevenfold from 6.4 million to 44 million! Seven times! If it keeps up the same pace over the
next two years, it will have 2.1 billion accounts, which is insane and probably not
going to happen, but you never know! Before we go on any further, let's just take a
quick look at its currency, TRON coin. Currently, it is 25th in terms of market cap at about
$4.8 billion with a price of 6.7 US cents and a circulating supply of 71.6 billion according
to CoinMarketCap. There is also about 31.5 billion TRON coins locked according to TRONSCAN, but
unlike some of the other cryptocurrencies like Bitcoin or Ethereum, you cannot mine more TRON
There are also occasional coin burns, although they are not systematic from what I've
seen unlike Binance Coin for example and the most covered one was the 1 billion coin burn
back in 2018, but that looked like a one-off. So, what is TRON used for? What does it actually
do? As I mentioned at the start of the video, TRON wants to bring content creators and content
consumers closer together.
To do this, it will operate a content sharing platform where creators
can share their content with their audience, but unlike current content platforms like
Facebook, YouTube or Netflix where the middleman, meaning the platform, gets the most profits, the
creator will get the majority of the profits with TRON! Instead of getting just a piece of the pie,
the content creator will get the entire pie or most of it at least. Unfortunately, this content
sharing platform is still under development from what I have seen and I wasn't able to find any
specific release dates. In fact, one of TRON's main criticism is that its CEO, Justin Sun, tends
to be very sporadic when announcing updates to the TRON platform.
Other cryptocurrencies like Cardano
have more concrete development plans and roadmaps, which are extremely useful to remove
some of the uncertainty surrounding them. Cryptocurrencies are still an emerging field.
There is still a long way before they establish themselves so there is naturally a lot of
uncertainty and it is good when the developers behind the cryptocurrency try to deal with it.
Still, TRON has a lot of good things going for it. It has strong partnerships with Samsung,
BitTorrent, Opera, Swisscom Blockchain which is a huge benefit for the TRON network.
TRON also allows decentralised apps and smart contracts to be created on its platform via
DAppChain which is a sidechain of TRON and is meant to help decentralised apps operate on
TRON with lower energy consumption, faster speed and enhanced safety. In fact, TRON is one of
the leading decentralised app platforms after Ethereum and EOS. Another big benefit of TRON is
its high TPS, meaning transactions per second. Some claim that TRON can consistently operate at
2,000 TPS, its official blockchain explorer says that TRON can only reach up to 748 TPS compared
to Bitcoin's 3 to 6 and Ethereum's 15 to 25 so we can see that TRON is much faster, but there
is definitely room for improvement there.
Also, TRON is scalable, it is actively developed,
it's basically looking good right now although it is important to remember that it is still in
its very, very, very early stages. Like I said, their main product is still not operational.
Also, TRON coin's price is extremely volatile like with any other cryptocurrency. In mid-April,
TRON reached 16.5 US cents, but now it is back down to 6.7 US cents at the start of July which
is a 60% drop in less than 3 months. As an asset, cryptocurrencies, especially smaller ones like
TRON, are extremely risky! We still don't have any regulation, they are far from being part of the
mainstream, they are not used that widely yet so it is important to manage your expectations.
There may be a few TRON millionaires and a couple of billionaires, but they are the exception.
A lot of people have lost money, hundreds, sometimes thousands of dollars trading TRON,
especially those who bought in after April this year.
I personally do not own TRON coin, nor trade
in it, I'm just interested in the tech behind it which is really fascinating. All I'm going to
say is be careful if you decide to own TRON coin. Putting that aside, there is a lot more that
can be said about TRON, but I wanted to keep this short and brief. If you are interested in
TRON, I would suggest looking into Ethereum, too. Also, check out some of the other
cryptocurrencies that I've covered in my Cryptocurrency for Beginners playlist.
I hope you enjoyed the video. Please like, share and subscribe to help grow the channel!
Thank you for watching and I will see you soon!.