TRON –Shaping Entertainment & Global Interactions

Ultimate Guide to Understanding the Tron Protocol and Cryptocurrency

Tron was founded in September 2017 by its founder Justin Sun, former University of Pennsylvania graduate, founder of Peiwo App — the Chinese “Snapchat” version, and former Chief Representative of Ripple in China (Check out our blog on Ripple: Ripple — Revolutionizing Corporate Payments). Tron’s ICO was released on September 9th, 2017 and the price of Tronix TRX (Tron’s Cryptocurrency) spiked from its initial $0.002 to currently $0.211 by January 2018 (Price data sourced from Coinmarketcap). That’s a 10,450% percentage increase in only 4 months. It is this price hike, fueled by near-constant Tronix TRX investments from the cryptocurrency world that placed the word Tron in the mouths of many.

So, what exactly is Tron? What is the essence of its cryptocurrency, Tronix (TRX)? What value does the Tron protocol speak to the market now and in the future? Is Tron really a good investment?

Tron — The Decentralized Entertainment Platform

Tron’s micro goal was to shape the highly centralized entertainment industry. Currently, the industry is run by major players such as Google, You Tube, Netflix, Spotify, and Apple among others. These major corporations act as middlemen in the entertainment industry; “They have full control over how much they want to pay you for the content you created” (TwentySumCrypto — Medium). This control often comes with the “ability to censor and control what [one]creates as content” (TwentySumCrypto — Medium).

More times than not, this control is hurtful to content creators who have to comply with terms set by this corporations, thus limiting their autonomy in content production or even the richness of the content being shared. Despite this, the creators still don’t get full monetary benefits for the content they created. A huge chunk of content profit ends up in the hands of You Tube or any other centralized content sharing monopolies.

Solution: The Tron Protocol. Tron “aims to create a worldwide free content entertainment [ecosystem]” (ZeroSum –YouTube). Through the decentralized ledger system — Blockchain, “Tron attempts to bridge the gap between content creators and content consumers by eliminating the middleman” (Shobhit Seth — Investopedia). The platform allows content creators to “freely publish, own and store data” (ZeroSum –YouTube) in the decentralized Tron ledger. Moreover, creators can autonomously control the “distribution, subscription and push of their content” (ZeroSum –YouTube).

The main gain for creators will be the ability to get paid directly for their content on the platform using the Tronix Token which can be exchanged at any time for worldwide currencies. This monetization will be without the influence of corporations such as You Tube that bite into the profit of creators. On top of that, censorship will be determined not by the central parties like Google or Apple, but “the worldwide community on the TRON protocol will decide what it deems worthy of success” (TwentySumCrypto — Medium).

Tron — Shaping Global Interactions through Blockchain Technology

Tron has a far bigger goal than just decentralizing entertainment. Tron’s macro goal is to shape global interactions using blockchain technology. This means that companies can be hosted on the Tron protocol and conduct business in the Tron decentralized ledger. The companies on Tron can create their own cryptocurrency on Tron and the cryptocurrency can be used to buy goods or services not only in the target company but other companies in the Tron platform. In simpler terms, Tron aims to allow an interaction between companies in its platform by allowing individual company cryptocoins to be used to buy goods or services in other companies in the Tron Platform.

Example: John owns a shoe-selling e-commerce platform. John can add his company to the Tron blockchain and create a cryptocoins as a mode of payment for his e-commerce service in the platform. Let’s call this cryptocoin, the Shoe Coin. On the other hand, Jane owns a book sharing platform where users pay to gain access to online books for a small fee. Jane also adds her book sharing business to the Tron blockchain and creates a cryptocoin to facilitate payments for the book renting. Let’s call her cryptocoin, the Book Coin. Therefore, a user in the Tron blockchain can convert Tronix (Tron’s Cryptocurrency) to the Shoe Coin to buy shoes. The shoe coin can also be used to buy books from Jane’s company as Tron can automatically convert Shoe coin to TRX to Book Coin to make the book transaction. The same coin can also be used to buy content in the Tron entertainment platform through this automatic coin conversions. This creates an intertwined business ecosystem, where users can interact with all businesses in the platform without the need of owning all the cryptocoins launched in the Tron platform.

At the moment, Tron has already signed a couple of companies. The following companies are among the companies currently present in the Tron ecosystem: Game.com, oBike, Peiwo App, Global Social Chain and Gifto (TwentySumCrypto — Medium). Indeed, Tron is clearly ready to not only shape entertainment but also global interactions particularly between businesses in its decentralized platform.

Check out other ABI articles to understand different other cryptocurrencies: Stellar — Most Revolutionary Crypto of 2018, Ripple — Revolutionizing Corporate Payments

Understand Why Tron is a good long term investment for any cryptocurrencyenthusiast; read: Why Tron is A Good Investment (Coming Soon)

Image courtesy of Smatereum, Tron Logo courtesy of Tron Organization; Sources: TwentySumCrypto — Medium, ZeroSum –YouTube, Shobhit Seth — Investopedia