TRON is an Ethereum alternative that has made huge waves in the decentralized finance (DeFi) space. At the time of writing, TRON’s native token, TRX, is ranked among the top 10 cryptocurrencies with a market cap of over $14 billion and a total locked value (TVL) of $8.1 billion.
Tron’s daily trading volume surged to $137.95 million, highlighting its growing popularity in the crypto world. The growth of Tron’s investment ecosystem is driven by its strong protocol interoperability, which provides potential opportunities for individuals looking to diversify their crypto portfolios.
The Origin of TRON(TRX)
TRON was created by Justin Sun in 2017 as an alternative to Ethereum. The blockchain project was envisioned as a way to redefine the internet.
To achieve this, Tron has managed to attract a global network of investors and developers, albeit one that is largely concentrated in China, earning it the nickname “Asian Ethereum.”
Unlike other blockchains that focus on advancements in cryptography or network design, Tron emphasizes decentralized applications (dApps), smart contracts, tokens, and the delegated proof-of-stake (DPoS) consensus mechanism, which were introduced by earlier projects. Tron has also received attention for its compatibility with Ethereum.
$TRX is the native token of the TRON blockchain. TRON has the world’s most significant stablecoin circulating supply and is the second largest blockchain by Total Value Locked (TVL), even surpassing Solana.
In 2018, the Tron Foundation acquired BitTorrent, a pioneer in peer-to-peer networks, leading to the launch of the BitTorrent Token (BTT) on the Tron blockchain in 2019.
Evolution of the TRON Network
Tron was originally launched as an Ethereum-based token and migrated to its own network in 2018. The architecture of the Tron network consists of three layers:
Core layer: This layer handles the calculation of instructions.
Application layer: This layer is used to create wallets and dApps.
Storage Layer: This layer is responsible for data segmentation.
Tron utilizes a decentralized proof-of-stake (DPoS) consensus mechanism, where 27 rotating “super representatives” validate transactions and maintain the system’s history.
Tron users participate in the consensus system by staking TRX, which gives them Tron power and voting rights. TRX also plays a vital role in utilizing dApps on the Tron network and participating in the operation of the protocol.
In 2020, Tron 4.0 was launched, introducing privacy protocols, TRC-20 tokens, and cost-effective shielded transactions. In 2021, Tron transitioned to being governed by a decentralized autonomous organization (DAO).
TRON’s role in the DeFi ecosystem
Tron has become one of the largest ecosystems in decentralized finance (DeFi). However, Tron’s total value locked (TVL) is dominated by a single ecosystem: JustLend
JustLend: The backbone of Tron’s DeFi space
JustLend is a decentralized lending protocol exclusively powered by the TRON network. It provides an ecosystem for lending digital assets, including TRX, Bitcoin, Ethereum, and stablecoins. The application relies on pools with algorithmically determined interest rates, enabling users to provide and borrow tokens in an automated and risk-controlled environment.
Some of its unique features include automatic order matching through smart contracts, real-time lending, and automatic liquidation when the value of collateral falls below a certain threshold. Interest is generated for each TRON block generation, approximately every three seconds. The protocol issues jTokens backed by the provided assets, allowing token holders to earn interest.
Summary and Analysis
As of this writing, JustLend dominates Tron’s DeFi space with a TVL of $5.873 billion, significantly outpacing other protocols within the Tron ecosystem.
Tron has become a major player in DeFi, driven by its strong architecture and JustLend’s dominance, providing a significant opportunity for investors seeking diversification in the crypto space.
