Crypto Analysis: Tron (TRX)

 TronChart

Summary

  • Project name: Tron
  • Token name: Tron Network
  • Ticker symbol: TRX
  • Token Type: ERC20 to TRX
  • ICO: $70m USD
  • Start date: September 2017
  • Exchanges: 30+
  • Market Cap: $1,286,443,008 USD as of 13/09 per CMC
  • Total Supply: 99,000,000,000 TRX

 

Overview

There is an incentive in the fundamental innovation which can drastically lessen exchange costs, create transparency, upgrade security, and evacuate exorbitant mediators? These are all big factors in the modern financial and trade systems that seriously undermine the manner of ease in trading between countries and peers. Antiquated institutions and centralized systems are in places to support business activity and international trade. A support that has turned into a burden until now. What can be enhanced with a specific digital cryptocurrency? All of the above, costs, transparency, security and exclusion of costly mediators that don’t bring any value to the chain of business and trade. Numerous market members evaluate crypto resources as traditional stocks or ETFs, however, the business model of these crypto assets are ought to be taken into consideration as seed VC ventures scarcely out of verification of idea. The way that we value these businesses which get listed in a short period of time bypassing the mediator and going straight to the open/auxiliary market compares with the specific measure of instability experienced in these markets. Envision 1-year-old SME propelling value financing on NASDAQ. This is basically what might as well be called off the considerable lot of the digital currency ICOs. In these series of Crypto Analyses, we are going to look into many of the most popular and not so popular Blockchain projects with an unbiased view on their business and market standing. In this article, we are going to look at Tron (TRX) is a blockchain platform that is intended to power a decentralized entertainment ecosystem. It seeks to provide the perfect medium for building dApps (decentralized applications) for social media & entertainment sector while offering a comprehensive solution to storing the user’s data on the blockchain.

technicalframework

Product

In the qualitative analysis of these cryptocurrencies, a seed-stage investment framework should be implemented where the investor should take the stance of a Venture Capitalist. Additional factors relating to looking at Tech companies and measuring the impact of their community have to also be discounted in the analysis. The research on the actual product that this Technology Blockchain company offers could be extracted easily from their whitepapers and technical papers. The product would represent the purpose and usability of the token/cryptocurrency in the system where one could clearly see how this business model could grow into a cash-positive inflow of funds in the future. Abstract projects with unclear model and purpose should be dismissed as even in the blockchain space keeping it simple plays a role.

The Tron project is seeking to build the Infrastructure for a truly decentralized Internet – blockchain based operating system offering scalable, high-availability and high throughput support. The developers of the system strive for the creation of a platform where everyone can easily create dApps (Decentralized applications). For example, some of the dApps that starte on the TRX platform are Odyssey (OCN), Peiwo, Game.com, UpLive, KittyLive, and Mico. The main market that the company is looking to break into is the Digital Entertainment where current content providers could interact with ordinary users worldwide. Digital entertainment products have been estimated according to various sources to be worth approximately $1 trillion, split between lifestyle ($200bn), online betting ($500bn), online gaming (c.$100bn) and information sharing ($100bn). Since the beginning of the project in September 2017

Tron is one of the main competitors of Ethereum and its universe.

Features:

  • TRX has had its sights set on creating Blockchain 4.0
  • Infrastructure – is divided into three relatively independent layers with a clear-cut structure: storage, core, and application.
  • Consensus – The TRON network has built an entire set of consensus mechanisms, which uses minimum costs to solve identification and personal credit issues in online transactions. The system uses a witness mechanism to achieve decentralization, where delegate nodes are selected by the blockchain network community through voting. Since users naturally have their own interests at heart, they will select distributed nodes with higher performance and more decentralized characteristics, which will greatly increase availability. Under TRON’s excellent consensus system, a limited number of nodes with high computational performance will be selected by users to act as maintenance nodes.
  • Smart Contracts – Tron Virtual Machin with lightweight with fast loading speeds, resource isolation, and scalability. A Java-based platform where developers can create various dApps and customized wallets. The Turing-complete language also means the ecosystem makes it easier for entry-level developers.
  • Business Model – through the Social Media, Gaming and Betting dApps built on top of the blockchain users as well as companies can earn TRX tokens from processing transactions,
  • Scalability – highly effective smart contract development no Java combined with effective database and accounts system
  • High Throughput – nodes get elected on the basis of their performance

Management

  • Management Team

We have a strong team led by Justin Sun who is a millennial serial entrepreneur deemed to be the ‘next Jack Ma’. The vocal and extremely passionate Justin Sun who was former Chief Representative of Ripple China, Founder/CEO of Peiwo (the Chinese ‘Snapchat’ 10m users) and Forbes 30 under 30 Asia for Consumer Technology 2015 & 2017. He is also an Alumni of Hupan University and has close connections with Jack Ma and the Alibaba Group. Lucien Chen is the CTO and Technical Lead coming from Tencent and Alibaba with extensive knowledge on Big Data, Systems Architecture, advertising algorithms, DMP systems and CTR platforms.

  • Investors

A strong investor backing is also characterizing this project such as Tang Binsen, the founder of Clash of Kings; Dai Wei, the founder and CEO of OFO bike, one of the largest sharing economy companies in China; Chaoyong Wang, founder of China Equity Group, one of the largest investment groups in China with market value of over $2 billion (bn); Yin Mingshan, LiFan group founder and one of the largest motor manufacturers in China; Yang Linke, the founder of BTCC.com

Xue Manzi, one of the most famous Angel Investors in China, Huobi.com, and Jubi.com.

Development

Tron has one of the most active developments where the Java-Tron repo has more than 7400+ commits with 30 releases by 70 contributors. In terms of the Github account of Tron, there are 11 repositories and 19 people signed up as actively developing for the protocol. In both the San Francisco and Beijing office there is a large number of Engineering positions open and the team has grown manifold since last year.

apps blur button close up
Photo by Pixabay on Pexels.com

Community

Cryptocurrency companies are not exactly like big corporations rather representations of value or assets within a network.  Its viability is not necessarily based on generating revenue rather directly depends on the participation of the community and user adoption. The adoption of the product by its community and the expansion of the blockchain network is one of the main driving factors for these companies’ success. The Community Management of Tron is constantly engaging with the community through regular posts, updates, releases in different languages.

Tron Telegram Group – 98698+ members

Twitter – 766+ Tweets, 315k+ Followers

Medium – 9.1k+ Followers

Reddit – 65.9k+ subscribers

There are 880+ active nodes with 140+ super representatives.

 

Strengths:

  • Tron already has a number of deployed dApps on the network
  • The Roadmap and delivery has been followed consistently
  • Strong community unfazed about the negative price action is constantly supporting the project
  • The Development team is one of the most active with xx git commits
  • The TRX main net currently handles 2,000 TPS in comparison ETH handles 25
  • Strong backing by Investors and Venture Capitalists in China as well as Jack Ma from the Alibaba Group

 

Opportunities:

  • Due to its new upgrade consensus system & Virtual Machine, Tron may outperform Ethereum. Developers utilizing the Tron Virtual Machine don’t have to contend with high costs related to “gas” used for the deployment and execution of smart contracts.
  • The content delivery market is poised to reach $30 billion by 2022 while the entertainment industry exceeds $2 trillion
  • The BitTorrent Acquisition which has over 100M active users present major synergies to be gained
  • Content creators can take ownership and credit rather than getting trimmed by middlemen

 

Threads:

  • NEO is one of the main competitors of Tron
  • “Fake” News regarding large TRX holders including Justin Sun dumping large amounts of TRX.
  • Cardano is a major contender which is developing slowly and focusing less on marketing
  • Tron is one of the main competitors of Ethereum and its universe.

 

Conclusion

Tron has a backing of some real heavy hitters from the Advisory perspective as well as a Management team with an identifiable track record in entrepreneurship. The project has grown massively for the short time span it has been in construction. It has a standing in the top 10 projects by market cap in the world considering it is only 1 year old compared to Ethereum’s 5 years. Tron aims to decentralize content delivery and give control of counter creators specializing in a particular niche and a massive market deemed for quick adoption. Tron is seeking to become the go-to blockchain for the entertainment and media industries. Information and credit sharing in these industries is mismanaged, closed off or non-existent the Tron blockchain seeks to alleviate this issues. Justin Sun and his team are underway for getting out there and solidifying their standing.

 

External Resources:

Charting & Visualisation – CoinMarketCap – https://coinmarketcap.com/

Tron Protocol Github: https://github.com/tronprotocol

Tron Whitepaper: https://o836fhe91.qnssl.com/tron/whitebook/TronWhitepaper_en.pdf

Tron Website: https://tron.network

 

Disclaimer: This document is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation.

 

 

Published by Steven Bonchev

My name is Steven Bonchev and I want to bring transparency and objective independent analysis and outlook to Cryptocurrencies and the Blockchain space. I am interested in Trading and helping companies build out their Finances while growing. I am looking to bring value to your business and trading.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: