The crypto markets have been on a tear for the past year. And it seems like almost every digital currency is pushing higher by the day. With Bitcoin still the most expensive cryptocurrency. There are many that are actively seeking out alternatives that offer greater potential for growth. One of those cryptocurrencies is TRON (TRX).
What is TRON?
TRON is a blockchain-based decentralized protocol. That aims at building a worldwide free content entertainment system with the aim of eliminating media tariffs and deflation. The TRON protocol allows for all digital assets to be tokenized and distributed, thereby reducing TRON’s dependence on transaction fees. Since 2017, TRON has been working hard to build. Its platform to help build this elusive digital entertainment ecosystem across the globe. The TRX crypto coin acts as a medium of exchange for different activities on the network. The dApps built on top of TRON offer users multiple features including file storage, bandwidth sharing and trading.
What Can TRON Do?
TRON was founded in Singapore and works with China’s Alibaba to create a blockchain-based entertainment ecosystem. Its token, TRX, has seen an upswing in value recently. And could be primed for even bigger gains going forward because it offers investors access to some unique features that rival coins do not have.
One of those features is the ability to create and run decentralized applications (dApps) using the TRON protocol. dApps are blockchain-based applications that are completely decentralized and are not hosted on any centralized third party server. As a result, they offer added security and privacy because they cannot be shut down or censored by authorities.
How Does TRON Work?
TRON has 3 separate components: the network, the SR (Super Representative), and the dApps. The network is the blockchain itself, where all transactions occur. The SR is made up of 27 entities that oversee and help manage the operation of the network and contribute computational resources in exchange for rewards.
The dApps component is the most important aspect of the entire system and will allow for a wide range of decentralized applications to be created on the system. The number of dApps that can be created is virtually limitless, which makes TRON a compelling cryptocurrency to own in 2019.
Will TRX Outperform TRX?
TRON has enjoyed a sharp uptrend ever since it began trading in early September of last year. There was an initial price surge during this time but it quickly retraced and has slowly ground higher ever since. The result has been steady appreciation and a gain of nearly 1,000% from its IPO price at $0.0019.
The TVM is set to launch at some point in the second quarter of this year, which could be one of the primary reasons why TRX could outperform it’s peers. Once it launches, there should be a dramatic increase in demand for TRX, which could lead to a major breakout above resistance at $0.041 along with an increase in interest from investors outside of Asia and beyond.
Is Tron underperforming?
TRON has performed above expectations given its status as a relative newcomer to the crypto markets. It was trading a little over $0.25 last week and has appreciated by 1,000% since its IPO price of $0.0019, which is a relatively tame return compared to some other top cryptocurrencies like Bitcoin and Ethereum that have appreciated 7-fold and 12-fold from their initial prices respectively.
But TRX may outperform, as we see from the chart below. The crypto market has been in a bull mode for the past two years and many coins are giving back recent gains made after suffering falls during 2019’s bear market
Is TRON a bubble?
In the long term, TRX could serve as a powerful hedge against the increasing prices of Bitcoin and other blockchain-based tokens. Its decentralized features and low cost of transactions make the coin a strong proposition for growth, despite the recent correction seen in its price. Following a sharp rise in prices back in September and October, the coin has retraced 33% of its gains since its IPO price.
Is it safe?
The TRX blockchain is completely decentralized, which means that all transactions are recorded on an immutable ledger, neither possessed by TRON itself nor any single third party. This makes it nearly impossible to create fraudulent transactions on the network and equally difficult for authorities to shut down or censor the TRON ecosystem.
