China considers TRON to be the second best cryptocurrency: what is behind optimism?
The government agency in China ranked TRON, the third largest decentralized crypto project (DApp), as the second best cryptoactive asset in the world for EOS.
The Center for Information and Industry Development (CCID) under the Ministry of Industry and Information Technology of China praised TRON for several indicators, including applicability and technology.
The government agency in China ranked TRON, the third largest decentralized crypto project (DApp), as the second best cryptoactive asset in the world for EOS.
The Center for Information and Industry Development (CCID) under the Ministry of Industry and Information Technology of China praised TRON for several indicators, including applicability and technology.
Why is TRON so highly rated?
From October 2018, over the course of four months, the daily volume of transactions on the Tron network has increased from 130,000 transactions per day to 1.7 million transactions, which is more than ten times.
Source: TronScan.org
The TRON network is capable of supporting a large volume of transactions due to a structure that relies on a group of nodes called super representatives (Super Representatives), which play a vital role in the delegated mechanism of Tron consensus on evidence of share (DPOS).
Unlike Ethereum or Bitcoin, which rely on the algorithm of consensus proof of work (PoW), which requires miners to conduct transactions using electricity and ASICs, networks such as TRON and EOS are more dependent on a certain group of nodes or representatives of the network.
There is a trade-off between decentralization and scalability in the development of blockchain networks. In order for a network to reach high power in a short period of time without making second-scale solutions, it must compromise on the decentralization level in its network.
Common criticism against EOS and TRON is based on a relatively low level of decentralization, which distinguishes them from Ethereum or Bitcoin.
Earlier, Vitaly Buterin talked about the following blockchain projects:
“When the blockchain project claims that“ we can make 3500 tons / s, because we have a different algorithm, ”it means“ we are a centralized pile of garbage, because we have only 7 working nodes for the entire network. ’”
With that said, the advantage of a scalable-oriented blockchain network is the ability to attract DApps and developers with favorable data processing environments.
According to Justin San, founder and CEO of TRON, the blockchain network has recently surpassed both Ethereum and EOS in the total number of new users, which has exceeded 164,000.
TRON is actively promoting its Dapp ecosystem with a large budget for developers and projects.
In a report for 2018, Dapp.com researchers learned that the project spent $ 100 million on TronArcade and launched a $ 2 billion initiative called Project Genesis to grow its Dapp market.
“TRON is the most ambitious in the field of dapp, with a $ 2 billion Genesis project launched in the second half of the year. In addition, the company spent $ 100 million on a tronarcade to promote its dapp ecosystem, ”the report says.
The Chinese Ministry of Industry and CCID have shown that they have preferred blockchain-oriented projects for scalability recently. It is likely that the active TRON user base, high transaction capacity, and the rapidly growing number of Dapps “liked” the government.
TRON in anticipation of accelerated growth
TRON CEO Justin Sun said in an interview with Huoxing that he believes that the cryptophone has reached the bottom, and this could lead to an increase in the adoption of the blockchain by users of the Lightning Network and BitTorrent.
He said:
“I think that it has already fallen to the bottom, and the bear market has ended ...
This year, I think, Bitcoin will fluctuate between $ 3000 and $ 5000. Opportunities for market breakthroughs this year include the explosion of DApp ecosystems, the large-scale application of the Lightning network, and three main opportunities for 100 million BitTorrent users to enter the cryptocurrency market. ”
