What is Tron (TRX)?

1. Introduction

Tron is a decentralized, open-source blockchain platform designed to build a global entertainment ecosystem. In simple terms: Tron aims to become a "world operating system" where content creators (bloggers, artists, game developers) can interact directly with their audience, bypassing intermediaries like YouTube, Apple, or Google.

Key Components:

• Web3-Oriented: The network is built so that data belongs to users, not corporations.

• Native Currency TRX (Tronix): The "fuel" of the network, used to pay for transactions, staking, and governance participation.

• Status in 2025: Today, Tron is not just a video platform but the world's largest highway for stablecoin transfers (primarily USDT), processing billions of dollars daily.

The goal of this article is to go beyond simple definitions. We will dissect the project's technical architecture, examine its controversial history, and understand why, despite criticism, Tron remains one of the most used networks in the world.

2. History and the Persona of Justin Sun

The history of Tron is inextricably linked to the personality of its founder — Justin Sun. He is one of the most charismatic and, at the same time, polarizing leaders in the crypto industry.

The Path from Idea to Independence

The project launched in September 2017. Through an ICO (Initial Coin Offering), the Tron Foundation raised approximately $70 million. Initially, Tron was based on the Ethereum blockchain (as an ERC-20 token), but Justin Sun from the outset declared plans to create an "Ethereum killer."

• June 2018: The launch of its own mainnet. Tron officially became an independent Layer 1 blockchain.

• Migration: Millions of tokens were migrated from the Ethereum network to the native Tron network, marking the beginning of a new era of scalability.

The Acquisition of BitTorrent: Blockchain Meets 100 Million Users

In July 2018, the Tron Foundation made a deal that shocked the market: the acquisition of BitTorrent for approximately $140 million.

What's the point? BitTorrent is the world's oldest and largest peer-to-peer file-sharing protocol. By integrating it into Tron, Sun gained a ready-made infrastructure with millions of active users. This was the first real step toward decentralized data and content storage on a massive scale.

Justin Sun: Marketing and Reputation

Sun is a master of "hype." He is known for his bold statements on X (Twitter), dinners with Warren Buffett, and aggressive marketing.

• Criticism: He has often been accused of excessive centralization of power and "copying" code from other projects (especially in the early stages).

• Resonance in 2025: By the end of 2025, his figure was back in the spotlight due to close ties with new political crypto-initiatives in the U.S., which allowed the project to maintain resilience even under regulatory pressure.

3. Technical Architecture: How Tron Works

The main reason for Tron's popularity is its speed and low cost. While Ethereum fees can reach tens of dollars, Tron fees are often close to zero. This is achieved through a specific architecture.

Consensus: Delegated Proof-of-Stake (DPoS)

Unlike Bitcoin, where blocks are mined (Proof-of-Work), Tron uses a delegated proof-of-stake system. This means the network is governed not by all users at once, but by trusted delegates they elect. The system works fast because a limited number of nodes are involved in validating transactions.

The Role of 27 Super Representatives (SR)

There are only 27 Super Representatives in the Tron network.

• Elections: TRX holders "freeze" their coins to obtain voting power (Tron Power).

• Voting: Every 6 hours, users vote for SR candidates.

• Functions: These 27 "elected" nodes verify transactions and write blocks to the blockchain. For their work, they receive rewards, which they often share with those who voted for them.

Throughput: 2000+ TPS

Tron claims the ability to process over 2000 transactions per second (TPS).

• How is this possible? Due to the small number of validators (only 27) and fast block time (3 seconds).

• Reality: Although critics argue this speed comes at the cost of decentralization, for the average user it means instant transfers. In 2025, the network stably handles high loads, remaining the primary platform for USDT transfers in the retail sector.

4. Unique Resource System: Energy and Bandwidth

One of the main problems with blockchains (like Ethereum) is the unpredictable cost of "gas." Tron solved this by dividing network resources into two types. This system allows active users to conduct transactions completely free of charge.

Bandwidth

This resource accounts for the size of a transaction in bytes.

• Purpose: Needed for simple TRX transfers and TRC-10 standard tokens.

• How to Obtain: Each active wallet receives 600 units of Bandwidth daily for free. If you need more, you can "freeze" (stake) your TRX.

Energy

A more valuable resource required to execute smart contracts.

• Purpose: The main consumer of Energy is USDT (TRC-20) transfers, interacting with DEXs (SunSwap), and lending protocols.

• How to Obtain: Energy is not given for free. To get it, you need to stake TRX or rent it on specialized marketplaces.

Staking 2.0: A Revolution in Resource Management

In 2023–2025, Tron fully transitioned to the Stake 2.0 model. Its main difference from the old version is flexibility:

• Separation of Ownership and Usage: You can now stake TRX but delegate (transfer) the obtained Energy to another wallet without losing control of your coins.

• Unfreezing: You can reclaim your TRX at any time (with a waiting period of about 14 days), while your votes for Super Representatives are not instantly invalidated as before.

• Cost Savings: Thanks to this system, an entire energy rental market has emerged. A user can pay 5–10 TRX to get Energy for a USDT transfer instead of "burning" 13–27 TRX in fees.

5. Token Layers and Standards (TVM)

Tron's technical appeal for developers lies in its "kinship" with Ethereum, but with much higher efficiency.

Tron Virtual Machine (TVM)

This is the heart of the Tron blockchain. TVM is fully compatible with the EVM (Ethereum Virtual Machine).

What does this offer? A developer can take smart contract code from the Ethereum network and deploy it on Tron with almost no changes. In August 2025, integration became even simpler with official Tron support in MetaMask, which finally removed barriers for users from other networks.

Token Standards: TRC-10 and TRC-20

Within Tron, there are two primary asset formats:

Standard	Description	Primary Use Case
TRC-10	Native standard, does not require smart contracts.	Simple ICOs, in-game tokens, BTT.
TRC-20	Smart contract standard (analogous to ERC-20).	USDT, stablecoins, DeFi project tokens.

TRC-10 transactions are extremely cheap and consume only Bandwidth, while TRC-20 transactions (like our beloved USDT) require Energy, as they involve smart contract logic.

6. Philosophy and Mission: Decentralizing the Internet

At the core of Tron lies the "Exodus" manifesto — the idea of liberating the internet from the power of tech giants.

Empowering Content Creators

Tron's philosophy is built on the premise that content (music, videos, posts) should not be controlled by intermediaries (YouTube, Spotify, Apple Music), who take 30–50% of creators' revenue.

• On the Tron network, a creator can upload their content and receive payment directly from viewers in TRX or USDT.

• There is no corporate censorship, as data is stored in a distributed manner.

Role in Web3

Tron positions itself as a foundational layer for Web3 — the decentralized web. Through the acquisition of BitTorrent, Tron merged blockchain with the world's largest P2P network. This enables the creation of dApps (decentralized applications) that can store and distribute massive amounts of data without central servers.

Focus on Entertainment

If Ethereum became the "computer for finance," then Tron became the "platform for life and entertainment."

• Gaming: Tron is one of the most popular networks for blockchain casinos and RPG games due to its lack of latency.

• NFTs: The platform is actively developing the digital art market with a focus on the Asian market and pop culture.

7. TRX (Tronix) — Economics and Deflation

TRX is not just a speculative asset but a fundamental unit of account and governance in the network. As of December 2025, Tron's tokenomics is considered one of the most sustainable among Layer 1 (L1) blockchains.

Functions of the Token

• Governance: TRX holders freeze coins to obtain Tron Power, granting the right to vote for Super Representatives.

• Resource Payment: If a user lacks sufficient Energy or Bandwidth, the network automatically "burns" an equivalent amount of TRX to pay the fee.

• Medium of Exchange: TRX is traded on all major exchanges and serves as a base trading pair for DEXs in the ecosystem.

Transition to a Deflationary Model

This is a crucial point for investors. Tron was long inflationary, but thanks to high user activity (especially in USDT transfers), the network has transitioned to deflation.

• Mechanism: Each day, more TRX is burned for transactions than is issued as rewards to Super Representatives.

• Result: The total coin supply is gradually decreasing, creating natural scarcity as demand grows.

Staking Yield (APR)

For the average holder, staking in the Stake 2.0 model yields an average of 4–5% annually. Yield can be higher by using coins in DeFi protocols or participating in partner programs of Super Representatives, who distribute additional bonuses to their voters.

8. Ecosystem: DeFi, NFTs, and Stablecoins

By the end of 2025, Tron has firmly established itself as the "primary payment system in the world of cryptocurrencies."

Market Leaders: JustLend and SunSwap

Tron's DeFi ecosystem revolves around a few giants that provide 90% of the liquidity:

• JustLend DAO: The largest lending protocol. By December 2025, its TVL (Total Value Locked) exceeds $6.6 billion. Users can lend their assets to earn interest or take out loans collateralized by TRX and USDT.

• SunSwap: The leading decentralized exchange (DEX) in the network. It facilitates instant swaps of TRC-20 tokens with minimal slippage.

The USDT (TRC-20) Phenomenon

Tron is the absolute leader in Tether (USDT) volume. Over 50% of the entire global USDT supply is issued on Tron.

• Why is it popular? During peak load on the Ethereum network, a USDT transfer can cost $30–50. On the Tron network, the same operation costs $1 to $2 (or free if you have Energy).

• Speed: Transactions are confirmed within seconds, making TRC-20 the ideal standard for business and inter-exchange transfers.

The USDD 2.0 Stablecoin

After learning from the collapse of Terra (UST), the USDD project underwent a deep transformation. In 2025, it is an over-collateralized stablecoin. Its reserves (consisting of BTC, TRX, and USDT) exceed the issued supply by 250%+, making it a reliable decentralized alternative to the centralized Tether.

9. Advantages Over Competitors

Why do users and developers choose Tron despite hundreds of other blockchains existing?

1. Speed and Low Entry Barrier

Tron processes transactions at a speed of 2000+ TPS. For the average user, this means no queues or stuck transfers. Low fees allow the network to be used even for micropayments (as low as $5–10), which is impossible in networks with expensive "gas."

2. Geographic Expansion (Asia and Latin America)

Tron is the "people's blockchain" in developing countries.

• In Southeast Asia (Vietnam, Thailand, Philippines) and Latin America (Argentina, Brazil), TRX and USDT on Tron are used for real payments of goods, freelance services, and cross-border transfers, replacing traditional banks.

3. Exceptional Stability

Unlike many high-speed networks (e.g., Solana), which occasionally face mainnet outages, Tron demonstrates 100% uptime. The architecture of 27 Super Representatives provides reliability sufficient to handle institutional capital flows.

Key Metrics Comparison (December 2025)

Metric	Tron (TRX)	Ethereum (ETH)	Solana (SOL)
USDT Transfer Fee	~$1.5 (or $0)	$15–$40	<$0.1
DeFi TVL	High ($8B+)	Very High	Medium
Network Reliability	Perfect	High	Occasional Outages
USDT Popularity	#1 in the World	#2 in the World	#3 in the World

10. Criticism and Risks

Despite its colossal success, Tron is often the subject of criticism. To understand the project objectively, it's important to consider not only its achievements but also its weaknesses.

Questions About Decentralization

The main argument of critics is "power in one set of hands." Although there are 27 Super Representatives (SR), the community often points out that a significant portion of voting power is controlled by entities close to Justin Sun.

• Counterargument in 2025: Over the past year, Tron has actively attracted institutional validators (such as Google Cloud, Kraken, and Animoca Brands) as SRs, gradually diluting centralized control and increasing trust among major investors.

Regulatory Risks: The SEC Saga

In 2023, the SEC (U.S. Securities and Exchange Commission) filed a lawsuit against Justin Sun and the Tron Foundation, accusing them of selling unregistered securities (TRX and BTT) and market manipulation.

• Shift in 2025: By early 2025, legal pressure on the project had significantly decreased. Following a shift in political course in the U.S. and Sun's active participation in new Web3 initiatives, the SEC effectively suspended active pursuit, leading to a sharp rise in institutional interest in TRX.

Security and dApps

High speed and low fees have made Tron attractive not only to users but also to creators of questionable smart contracts.

• The ecosystem often features "phishing" tokens and fraudulent pyramid schemes.

• Advice: Always verify a smart contract address before confirming a transaction in TronLink, as the network cannot reverse an operation once it's executed.

11. Comparison with Competitors (Tron vs All)

The market for Layer 1 (L1) blockchains is fiercely competitive. Here is how Tron stacks up against its main rivals in 2025:

Characteristic	Tron (TRX)	Ethereum (ETH)	Solana (SOL)	BNB Chain (BSC)
Primary Niche	Payments and USDT	DeFi and NFTs (High-end)	Trading and Meme Coins	Exchange Ecosystem
Transaction Cost	Low ($1–2 or $0)	High ($10–$50)	Ultra-Low ($0.01)	Medium ($0.1–$0.5)
Decentralization	Medium (27 SRs)	High (1M+ validators)	Medium/High	Low (under Binance control)
Stability	100% (No Outages)	100%	Occasional Outages	High

• Tron vs Ethereum: Tron wins in everyday use. Ethereum remains a "safe" for storing capital, but Tron is the "wallet" for daily spending.

• Tron vs Solana: Solana is faster at peak capacity, but Tron is much more stable under load and has more developed stablecoin infrastructure.

• Tron vs BSC: These networks are architecturally similar, but Tron is more independent of any specific exchange, while BSC is tightly linked to the fate of Binance.

12. Conclusion and the Project's Future

Tron has evolved from an "ambitious Ethereum clone" to the main transportation hub of the global crypto economy.

BitTorrent Chain (BTTC): A Bridge to the Future

One of the key development vectors has been the expansion of BTTC 2.0. This is a Layer 2 solution that connects Tron with Ethereum, BSC, and other networks. This turns Tron into a multi-chain hub, allowing assets to move seamlessly between different blockchain worlds.

Global Settlement Layer

Today, Tron's mission has transformed. From being just an entertainment platform, it is becoming an alternative to the SWIFT system for developing countries. Thanks to integration with BTFS (BitTorrent File System), the network also aims to become a decentralized cloud storage where data cannot be blocked or deleted.

Final Verdict

Tron is a blockchain utility. It may not possess the technological "glitter" of new modular blockchains, but it works. In 2025, when users value speed, affordability, and reliability over ideology, Tron holds a leadership position that will be extremely difficult to challenge.