A decentralized disruptor in crypto? What’s Tron?
Jun 17, 2025・5 min read
For many, the word "Tron" brings to mind neon-lit races across “The Grid” in Disney’s arcade-inspired film. But in the world of blockchain, Tron refers to a very different kind of network – one built on decentralization and real-world utility.
Launched in 2017, Tron (TRX) has become a well-known blockchain thanks to its range of features and its celebrity founder, Justin Sun. It’s become so popular that its stablecoin transaction volumes sometimes surpass those of legacy blockchains like Ethereum (ETH).
But beyond all the buzz, what is Tron, exactly? And is it the next stage in cryptocurrency’s evolution? Here, we’ll tell you what you need to know.
What’s Tron (TRX)? What’s Tron used for?
Tron is an open-source, blockchain-based operating system that allows third-party developers to create decentralized applications (dApps). It was initially released as an ERC-20 token on Ethereum through an initial coin offering (ICO) to help content creators distribute digital media without relying on intermediaries.
Just months after its debut, the Tron team migrated to an independent blockchain with its own token standard and virtual machine, the Tron Virtual Machine (TVM). Soon after, in 2018, Tron made headlines in the tech world when it acquired the peer-to-peer (P2P) file-sharing platform BitTorrent.
While Tron still supports online content creators looking to benefit from blockchain, its scope has expanded. The team continues to explore new use cases and provide tools for developers building decentralized software applications.
How does Tron work?
Similar to blockchains like Ethereum and Solana (SOL), Tron uses smart contracts – blockchain-based programs that execute commands without third-party intermediaries. Developers building dApps in Tron’s ecosystem rely on these contracts to create trustless experiences in video games, decentralized finance (DeFi), and more.
Tron also follows a proof-of-stake (PoS) model, where node operators lock up cryptocurrency for a chance to validate transactions. In this system, they stake the native Tron coin (TRX), which serves multiple roles: It covers transaction fees, rewards validators, and powers on-chain governance.
However, Tron doesn’t use a standard PoS mechanism. Instead, it runs on a modified version called delegated proof-of-stake (DPoS). Here, TRX holders vote for 27 “super representatives” who validate transactions and produce blocks. This setup allows Tron to process thousands of transactions per second while keeping fees low. While DPoS introduces a higher risk of centralization, it speeds up processing and reduces fees compared to traditional PoS systems.
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Key features of the Tron blockchain
The Tron blockchain shares many of the core functions of other smart contract blockchains, but it distinguishes itself from competitors with its efficiency and focus on file sharing. Crypto traders and developers often choose Tron as a fast, cost-effective, and scalable alternative to other smart contract protocols.
High throughput and scalability
Tron’s selective delegated proof-of-stake model allows nodes to reach consensus and publish transactions quicker than other networks. Recent reports suggest that the Tron blockchain can handle up to 2,000 transactions per second (TPS), similar to other high-speed blockchains like Solana.
Low transaction fees
Tron’s staking infrastructure helps keep gas fees low, even during periods of network congestion. In most cases, the fee to send TRX or a Tron-based token is less than a dollar.
Smart contracts and dApp development
While smart contracts exist across many blockchains, Tron offers a unique connection to the Ethereum blockchain. Developers can work directly in the Tron Virtual Machine or port existing dApps using Ethereum’s Solidity coding language, increasing choice and interoperability throughout the crypto space.
DPoS consensus mechanism
Although other blockchains use DPoS, such as EOS (EOS), Tron is one of the most influential networks that operates through this consensus algorithm. By electing a limited number of node operators to validate transactions, Tron achieves high speed and scalability. However, some critics argue this model reduces decentralization and may impact long-term security.
Decentralized file sharing and content creation
Tron’s 2018 integration with BitTorrent added robust P2P file sharing to the network. Through the BitTorrent File System (BTFS), users contribute storage and bandwidth in exchange for BitTorrent (BTT) tokens. This enhances the efficiency of file sharing while empowering content creators with direct distribution and monetization.
Tron vs. Ethereum: How do they compare?
Although Tron was originally a part of Ethereum, it now operates independently while maintaining compatibility with the EVM for seamless cross-chain functionality. But despite their close connection, Tron and Ethereum differ in a few key areas:
Transaction fees and speeds
Even after Ethereum transitioned to a PoS blockchain, Tron outpaces Ethereum’s mainnet in transaction speeds and fees thanks to its DPoS model. Compared to Tron’s 2,000 transactions per second, Ethereum typically has transaction speeds of 15–30 transactions per second. Ethereum gas fees also tend to spike during periods of high demand. That said, Ethereum’s growing network of Layer 2 solutions – such as Arbitrum (ARB) on Ethereum – offers more efficient ways to interact with the EVM.
Liquidity
Ethereum remains the second-largest cryptocurrency by market cap, which makes it easier to trade across crypto-friendly platforms. Tron typically ranks within the top 20 cryptocurrencies, but its smaller market cap means fewer exchanges and a narrower trader base, resulting in lower liquidity by comparison.
Ecosystem size
Ethereum accounts for over 50% of the total value locked (TVL) in DeFi (at the time of writing), while Tron holds approximately 4.5%. Although activity on each chain constantly fluctuates, Ethereum consistently leads with the most widely used dApps in web3 and one of the largest developer communities in crypto.
How to buy and store Tron (TRX)
Whether you’re buying the Tron cryptocurrency – TRX – as an investment or to use it within the Tron ecosystem, many exchanges make it easy to get started. The simplest way to find trading platforms that support TRX is to visit a third-party crypto price aggregator website like CoinMarketCap or CoinGecko. Search for “Tron” in the search bar, navigate to the official TRX page, and click or tap on the “Markets” tab to view a list of centralized and decentralized exchanges (CEXs and DEXs) that offer it. From there, choose an exchange and create an account or connect a self-custodial wallet that supports TRX transfers.
As for wallets, many self-custodial options work with the Tron blockchain. Popular software wallets include TronLink Wallet, Trust Wallet, and Exodus. For added security, some hardware wallets – like those from manufacturers like Ledger – also support TRX storage.
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Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.