Two Sides of the Tron Coin: Part 1 - Transactions

Two Sides of the Tron Coin: Part 1 - Transactions

By ExponentialOne | Exponential Explore | 23 Jul 2020


"Two sides of the same coin" is an idiom that means there are two ways to look at something even if they are one object - for example, a coin. A coin has two different sides and two ways to look at it, even though it is one object. For this three part series I want to look at three important parts of Tron - transactions, dapps, and decentralization, but try to look at it from both sides. There are positives and negatives, problems and solutions, good things and bad things when looking at Tron or any other cryptocurrency.

Now before we start, I want to address the elephant in the room - I try to be blockchain agnostic. I am trying to write from a neutral point of view, without a "favorite" token or coin or any form of recommendation. I am honestly looking for the pros and cons in this 3 part series.

For part 1 of the series, I will look at something vitally important for cryptocurrencies - transactions and scalability. In other words, I am looking at how easy, affordable, and quick Tron is to use, while also looking at it from a skeptic's viewpoint.

 

First Side of the Coin: Tron is Awesome!!!

A great success of Tron is its transaction speed and scalability. It can handle a massive number of transactions! According to the whitepaper and Tron Network, Tron can handle a huge 2000 transactions per second. This compares to Ethereum's 15 transactions per second and Bitcoin's transactions per second often between 3 and 4 (this is not to say there aren't solutions down the line). Looking on Tronscan, there were consistently around 1.2 million or more transactions per day over the last 14 days, and one day last week it almost reached 4.6 million transactions in a single day. Overall there are a huge number of transactions and the network can handle a significant amount of activity.

Another thing to consider is the affordability of use. For some blockchains, their networks are bogged down and therefore expensive to use and you end up paying substantial costs to send coins or interact with defi platforms or games. Tron on the other hand uses a system of bandwidth and energy. You use bandwidth when sending basic transactions and you use energy (and bandwidth) when interacting with smart contracts. What makes Tron affordable is that you are able to generate both bandwidth and energy through freezing your Tron in their Delegated Proof of Stake system. You are allocated a certain amount based on how much you freeze, and it regenerates each day, giving you a certain number of free transactions. If you run out, it then burns TRX to complete the transaction. This is also the process you use to receive staking rewards.

 

But what is the other side of the coin? Yes, Tron is fast and Tron is affordable to use, but it's not perfect.

Second Side of the Coin: Tron has problems!

First in the context of scalability, Tron is not alone. It has major competitors that are catching up fast. Tron is cheaper to use than something like Ethereum, but as Ethereum 2.0 is rolled out and implemented and other chains like Cardano are fully upgraded, Tron will have serious competition. (Side note: I am hopeful that many blockchains can happily coexist).

On that note, and leading to part 2 of this series, Tron has to continue to build out its ecosystem with new Dapps and users. It is good to be fast and cheap, but for Tron to be successful, it has to make sure users and developers continue to use the platform. Tron can handle thousands of transactions per second, but to utlize the strength of the platform, it needs to continue to grow in a sustainable way. Dapps should be meaningful. Tokens should have utility. In other words, does it matter if it is fast/cheap to use if activity numbers begin to decrease?

 

Please check back soon for part 2, where I look deeper into the two sides of Tron's Dapp economy and part 3, where I look at the decentralized nature and governance of Tron. 

 

Thank you for reading. Please follow for more updates and comment below!

 

Update: Part 2 is ready to go! Check out the two sides of Tron's Dapp economy.



Exponential Explore
Exponential Explore

This blog will serve as a launchpad to exploring cryptocurrency and blockchain projects. I will explore how to use crypto and new and interesting projects. The best way to learn is to to teach and write.

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